Report reveals the 5 fraud threats to watch out for in 2024
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A report released by Experian reveals the five fraud threats that should be the focus of consumers, organizations and security leaders alike. The report warns that fraudsters are utilizing the latest technology to deceive their targets. More than 50% of consumers state that they feel more threatened by fraud attempts compared to a year ago, and 70% of organizations report an increase in fraud-related losses.
To defend against fraud in 2024, the report advises individuals and businesses to be alert for the following threats.
Fraud through generative AI
The increasing use of generative AI has made fraud more accessible. Fraudsters can deploy generative AI sites to produce a range of threats including false voice or video content, fraudulent emails, scam websites and socially engineered scams. With stolen identities, malicious actors can use generative AI to invent interactable profiles on social media that deceive targets.
Physical biometrics are infrequently used
Physical biometrics are the most trusted authentication device, according to 85% of consumers. However, such methods are only used by 32% of businesses to recognize and defend against fraudulent activity.
The increase in online shopping is an avenue for fraud
Fraudsters target retailers and small businesses through online shopping. When returning a purchased item, the fraudster will send an empty box and claim the product was lost in the mail. The report suggests this tactic will become more common in 2024, causing businesses to lose goods and revenue.
Dormant synthetic identities will return
A few years ago, many fraudsters synthetic identities. These identities laid dormant while the fraudsters found other, more convenient methods of fraud, but now that these identities have several years of history, the report predicts that they will return. Companies are advised to review accounts on file for any synthetic identities.
Online opportunities will play on a target’s emotions
Fraudulent opportunities or campaigns on GoFundMe and social media are used to take advantage of a target’s emotions to convince them to part with money or personal information. The report suggests that the application of this method will increase in 2024 and beyond.
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