With fraud expected to surge amid uncertain economic conditions, fraudsters are preparing new deception techniques to outsmart businesses and deceive consumers. To help businesses prepare for the coming fraud threats, we created the 2023 Future of Fraud Forecast.
Here are the fraud trends we expect to see over the coming year:
- Fake texts from the boss: Given the prevalence of remote work, there’ll be a sharp rise in employer text fraud where the “boss” texts the employee to buy gift cards, then asks the employee to email the gift card numbers and codes.
- Beware of fake job postings and mule schemes: With changing economic conditions, fraudsters will create fake remote job postings, specifically designed to lure consumers into applying for the job and providing private details like a social security number or date of birth on a fake employment application.
- Frankenstein shoppers spell trouble for retailers: Fraudsters can create online shopper profiles using synthetic identities so that the fake shopper’s legitimacy is created to outsmart retailers’ fraud controls.
- Social media shopping fraud: Social commerce currently has very few identity verification and fraud detection controls in place, making the retailers that sell on these platforms easy targets for fraudulent purchases.
- Peer-to-peer payment problems: Fraudsters love peer-to-peer payment methods because they’re an instantaneous and irreversible way to move money, enabling fraudsters to get cash with less work and more profit
“As fraudsters become more sophisticated and opportunistic, businesses need to proactively integrate the latest technology, data and advanced analytics to mitigate the growing fraud risk,” said Kathleen Peters, Chief Innovation Officer at Experian Decision Analytics in North America. “Experian is committed to continually innovating and bringing solutions to market that help protect consumers and enable businesses to detect and prevent current and future fraud.”
To learn more about how to protect your business and customers from rising fraud trends, download the Future of Fraud Forecast and check out Experian’s fraud prevention solutions.