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.

Comments

Overview of Ticket Scalping

In the world of live events, ticket scalping has become a significant issue, affecting both genuine fans and the event industry as a whole. What is ticket scalping? Ticket scalping refers to the practice of purchasing tickets for events such as concerts, sports games, and theater shows and then reselling them at a higher price. This practice often results in genuine fans missing out on tickets or having to pay inflated prices. How it works? It involves the rapid purchase of tickets as soon as they are released. Scalpers use automated tools known as bots to bypass purchasing limits and secure large quantities of tickets. These tickets are then sold on secondary markets at remarkably higher prices, exploiting the high demand for popular events. Types of scalper bots: Spinner bots: These bots are designed to refresh ticketing websites repeatedly until tickets become available. They can quickly complete the purchase process, often faster than a human can. Harvest bots: These bots collect...

What is chargeback insurance?

Chargeback insurance is a type of coverage designed to protect businesses from the financial impact of chargebacks. A chargeback occurs when a customer disputes a transaction and the funds are returned to them by their bank or credit card company. This can be a costly issue for merchants, as they not only lose the sale but may also incur additional fees. How chargeback insurance works? When a customer disputes a transaction, the merchant's bank reviews the claim. If the dispute is deemed valid, the bank reverses the transaction, returning the funds to the customer. Chargeback insurance helps mitigate this risk by reimbursing the merchant for the lost revenue and associated fees. Essentially, it acts as a safety net, ensuring that businesses are not left financially vulnerable due to chargeback disputes. What chargeback insurance covers? Disputed transactions: Covers the cost of transactions that are reversed due to customer disputes. Fraudulent charges: Provides reimbursement for t...

Rising auto insurance fraud in 2024

Auto insurance fraud is a serious issue that affects both insurance companies and policyholders. It involves deceptive practices aimed at obtaining financial gain from insurance policies. It is any act committed with the intent to obtain an improper payment from an insurer. Common types of auto insurance scam includes: False Claims: Policyholders may file claims for accidents that never occurred or inflate the extent of damage. Staged Accidents: Fraudsters deliberately cause accidents to claim insurance money. Application Fraud: Providing false information on insurance applications to obtain lower premiums. Phantom Passengers: Claiming injuries for passengers who were not actually in the vehicle during an accident. Exaggerated Claims: Overstating the cost of repairs or medical expenses. Ghost Vehicles: Claiming insurance for a vehicle that doesn't exist or is not owned by the claimant. Consequences of auto insurance fraud: Increased Premiums: Fraudulent claims lead to higher insura...

Search This Blog