Fraud is on the rise. And this trend isn’t going to go away any time soon. We’ve seen a continuous uptick year on year and the pressure is on for businesses globally to detect and prevent the ever changing and increasingly sophisticated fraud attempts.
As experts in the art of manipulation, fraudsters have, and will, always look for weaknesses in both individuals’ or organisations’ behaviour that they can exploit to their advantage. Whether it’s using genuine data obtained through data breaches, harvesting personal information through coercion, or by creating synthetic identities, the end result is the same: a victim of fraud that has suffered some level of loss.
What’s more, globally, the cost of living is increasing and the disparity between income and expenditure is widening. This financial pressure is increasing the number of individuals who are driven to fraud by necessity rather than to fund a lavish lifestyle. For many, it will be opportunistic rather than proactive, taking advantage when the opportunity presents itself rather than actively seeking ways to defraud organisations.
Money mules are probably the best example of this and continue to be a big problem. In many cases, although they are committing fraud, money mules are as much a victim as the owner of the account from which funds are taken. The younger and older generations are targeted the most actively, as fraudsters seek to take advantage of those that are vulnerable and under severe financial pressure.
It varies sector to sector but many of the usual suspects span industries:
In addition to these, the emerging and ever-increasing threat associated with AI-driven deepfakes is something that is becoming more concerning.
Social engineering will continue to be a favoured M.O. of many fraudsters, as in many cases it allows a fraudster to circumvent a lot of the anti-fraud processes organisations have put in place. For example, a One Time Passcode can be useless if the owner then passes it on to a fraudster, convinced they work for their bank or are a trusted person.
Mass cyber-attacks and the targeting of organisations to obtain the personal information of their customers in bulk will continue and fraudsters will carry on trying to monetise it by selling it on the dark web. Those using such information to make false applications or to attempt to take over existing accounts will maximise the use of this information.
First party fraud is likely to increase if the economic crisis worsens and more people struggle to stay afloat.
Artificial Intelligence will increasingly be leveraged by fraudsters to strengthen their fraudulent attempts as they are not limited by regulation or compliance requirements.
In addition to this, you can reduce your customers’ potential exposure to social engineering by moving away from One Time Passcodes sent to mobile phones and instead use more passive authentication techniques that do not involve passcodes that can easily be shared.
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