Over recent months there have been increases in first-party loan fraud, mortgage fraud and credit card fraud. Fraudsters are also relentlessly testing new ways to commit financial theft, with more fraud attacks against older people and more women committing fraud.
In terms of how the fraud is being carried out, account takeovers are now one of the biggest challenges facing organisations, while technologies such as AI and machine learning – typically used by businesses to combat fraud – are being used by fraudsters themselves. Man-in-the-middle attacks, synthetic identities, mules, phishing, Trojan Horses and ransomware also remain popular methods for tricking people into parting with their money.
Businesses are aware that fraud is a serious threat. As our research shows in this paper, they know the importance of looking after their customers and cultivating trust with them. They also understand that data breaches and associated fraud can be damaging to customer trust. However, few are yet to find a way of achieving success when it comes to fraud, and instead we see year-on-year levels rise – albeit in different ways, and with different products targeted.
One thing is certain with fraud: it changes fast.