Quick overview of fraud landscape in 2024

Study from Experian's 2024 Identity & Fraud Report finds that identity theft and stolen credit card information are the top online fraud concerns. In 2024, US consumers are primarily worried of phishing emails, phone scams, false information/ fake news & ads.

From businesses perspective, over 50% of them have observed higher losses as compared to previous years. Operational challenges include generative AI (GenAI) fraud and/or deep fakes, P2P payment scams, identity theft, transaction fraud.

Account takeover fraud has been consistently topping the list of most reported fraud event by US businesses, followed by identity theft and fraudulent new account openings.

Consumers and businesses are equally concerned about fraud, but there is a decrease in the willingness to share their personal data with the businesses online. Businesses will need to continue combating fraudulent activities by implementing comprehensive fraud prevention strategies to prevent all types of fraud.

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Rising Fraud in eCommerce

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What are Authorized Push Payment (APP) frauds?

APP fraud happens when people are duped into making payments to fraudsters, believing they are undertaking genuine transactions. It relies on the fraudster's ability to manipulate confidence and create urgency through advanced social engineering techniques. Impersonation scam is where the fraudsters impersonate trusted entities to manipulate victims into transferring funds under false premise to acquire their account information, assets, etc. Key strategies to combat APP fraud includes: Using advanced fraud detection system to detect malicious fraud attempts. Educating customers on recognizing the potential scams and protecting themselves. Implementing transaction monitoring to identify risky activities on a real-time basis. Account takeover fraud is a forerunner to APP fraud. With ATO prevention solution, it is possible to prevent bad actors from fraudulent activities. Impose additional transaction checks with time delays for high-value or unusual transactions.

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