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As there is talk about the global economy potentially heading into a recession, it's important to be on the lookout for six fraud trends.

Financial elder abuse fraud occurs when someone illegally uses a senior’s money or other property. Previngting it requires a robust fraud solution.

Reports of romance scams have spiked in the past two years, partly due to the rise in popularity of online dating and social apps while Americans were isolated at home. With more consumers looking for love online, fraudsters have jumped on the chance to build intimate, trusted relationships without the immediate pressure to meet in person. And these shams seemingly paid off: from January 1 to July 31, 2021, the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center received over 1,800 complaints related to an online romance scam, resulting in losses of approximately $133 million. These romance scams carry financial and security risks that impact both the targets of the fraud and the businesses with which they interact. Experian predicts that romance scams will continue to rise in 2022, leaving consumers and businesses vulnerable to attacks and theft. What is a romance scam? According to the FBI, a romance scam occurs when “a criminal adopts a fake online identity to gain a victim's affection and trust." Typically, fraudsters seek out their marks in dating or socializing settings, such as online apps, and strive to build intimacy and trust as quickly as possible. To avoid suspicion, they may claim that they travel frequently for work or give other excuses about why they can't meet in person. Their attentions are in the context of love and dating, so it's not uncommon for romance scammers to offer marriage proposals or other commitments to intensify the relationship, but the whole point of this fraud is to get their targets to send money. Sometimes fraudsters simply ask for a “loan" to cover medical expenses, an unforeseen shortfall or even travel costs to see the victim in person. Other times, they might ask for gifts or gift cards. Requests for money ­– whether through direct deposit, gift cards or credit card payments – are all red flags. Increasingly, romance scammers have tried to lure people into investment deals, including cryptocurrency. Romance scams predate the internet by centuries, but the emergence of digital technologies has made them easier to accomplish – and easier to get away with, too. Romance scams are increasing In 2020, there were around 44 million users of online dating services in the United States and this increased to 49 million users in 2021, according to Statista Research Department. By 2022, two years into the COVID-19 pandemic, that number jumped to more than 50 million, and it's projected to rise to 53.3 million by 2025. More users mean more potential targets. According to the Federal Trade Commission (FTC), romance scams hit a record high in 2021, with consumers reporting $547 million in losses that year ­– up 80 percent from 2020. The median individual loss reported to the FTC from romance scams was $2,400. With the help of modern technologies, romance scammers have added new tactics to their grift. For example, in addition to usual requests for money, a target might be asked to participate in bogus investment schemes involving cryptocurrency. In these cases, the median loss was $10,000. According to the FTC, romance scammers have conned Americans out of an estimated $1.3 billion over the past five years. Worryingly, romance scams also present a serious data risk. Damage could spread beyond financial losses into even more hazardous territory if the scammer can gain access to a target's personally identifiable information (PII) or financial data. In these cases, fraudsters might engage in identity theft to create new accounts or take over existing ones. Breaking up with romance scammers Businesses may not be susceptible to the lure of love, but they're still vulnerable when it comes to the fallout from romance scams. Companies must ensure they have a layered solution that seamlessly recognizes returning customers, while monitoring for indicators that the user presenting an identity is not actually the owner of that identity. Some warning signs include logins from a new IP address nowhere near the user's registered physical address; unusual types or frequencies of transactions; and the addition of a suspicious new authorized user to a credit card account. Businesses also have access to fraud prevention help. Using vast data resources, decades of identity and credit risk management, consumer-permissioned data and industry-leading analytics, Experian enables businesses to detect and prevent fraud by identifying credible customers. This empowers businesses to apply the appropriate amount of friction to each interaction to protect their customers, their data and themselves. To learn more about how Experian is assisting businesses with their fraud prevention efforts, visit us or request a call. And keep an eye out for additional in-depth explorations of our Future of Fraud Forecast. Future of Fraud Forecast Fraud Prevention

According to Experian’s Automotive Market Trends Report: Q1 2022, new vehicle registrations were down 19% from the prior year—declining to 3.4 million. Used registrations went from 11.4 million to 9.9 million year-over-year, decreasing 13.2%.

With the pandemic waning, now is the time for financial institutions to take action on financial inclusion. Read on to learn more!

Experian’s identity, verification, and fraud solutions can help government agencies of all sizes on their journey to digital modernization.

Whether a consumer has a brand-new or used vehicle, it’s inevitably going to need regular maintenance and require repairs. Fortunately for aftermarket professionals, the aftermarket “sweet spot” is continuously growing—a trend that should be watched closely. Vehicles in the sweet spot are typically between six- to 12-model-years-old and have aged out of general OEM manufacturer warranties for any repairs. Knowing the model year and type of vehicles that are in operation will be important for aftermarket professionals to determine what parts may be needed, and anticipate potential consumer needs. According to Experian’s Automotive Market Trends Report: Q1 2022, 35.8% of vehicles in operation (VIO) now fall within the aftermarket sweet spot, a 6.5% year-over-year increase. It is important to note that the aftermarket sweet spot max volume record of 104 million is expected to be broken over the next 12-18 months, considering the sweet spot volume was 100.3 million through Q1 2022 and the last time it exceeded that number was nine years ago. The increase will create more opportunities for aftermarket professionals as more vehicles will potentially need maintenance. Aftermarket “sweet spot” will continue to grow Right now, the aftermarket sweet spot consists of model years between 2011 and 2017. There were 10.5 million 2011 model year vehicles on the road through Q1 2022, this low volume will transition into the post-sweet spot next year. At the same time, there will be 16.5 million 2018 model year vehicles entering the sweet spot. Furthermore, an estimated 16.7 million vehicles in operation with a 2019 model year and almost 14.3 million vehicles in operation with a 2020 model year will be transitioning into the sweet spot in the next two years. When these model year vehicles enter the sweet spot, the current 12 million vehicles with a 2012 model year and an estimated 13.7 million 2013 model year vehicles will transition into the post-sweet spot, resulting in a notable increase. Watching this data closely will allow aftermarket professionals to continue assisting with maintenance and repairs for these vehicles that are currently on the road, as well as prepare for what’s to come to the aftermarket industry in approaching years. To learn more about other vehicle registration trends, watch the full Automotive Market Trends Report: Q1 2022 presentation on demand.

With the right technology, it’s possible to implement a layered fraud solution that provides protection and enhances the consumer journey.

These days, the call for financial inclusion is being answered by a disruptive force of new financial products and services. Read more!

Experian's 2022 Global Identity and Fraud Report explores consumer expectations and preferences and effective risk mitigation strategies.

In the first six months of 2021, there was $590 million in ransomware-related activity, which exceeds the value of $416 million reported for the entirety of 2020 according to the S. Treasury's Financial Crimes Enforcement Network. Constant economic pressure coupled with the ever-increasing volume of data online have created an environment that’s ripe for attacks, leaving businesses and consumers vulnerable to attacks and theft. What are ransomware attacks? Ransomware is a subset of malicious software, AKA malware, that either threatens to publish or block access to data or a computer system. It often takes the form of a cyberattack where criminals take over an organization’s computer network. Once they’ve assumed control, the hackers demand a ransom to restore access to the illicitly encrypted data. Additionally, ransomware attacks and data breaches are now becoming more closely linked, with sensitive data including employees’ personal information, HR records, and more being filtered out and distributed during or after the attack. In fact, Experian has found that 7 of 10 data breaches involve ransomware. The negative impact of ransomware attacks According to the Identity Theft Resource Center, the average ransom demand in 2021 was $5.3 million, a 518% increase from the 2020 average. Experian’s latest Data Breach Response Guide found that businesses were hit with ransomware attacks every 11 seconds in 2021. These attacks also take up to 20% longer to begin breach notifications, leaving businesses even more vulnerable. In addition to the monetary loss and the time spent responding to and recovering from the attack, businesses also stand to suffer reputational damage, because consumer sentiment is that companies are responsible for protecting data. Having a plan in place makes a sizeable impact though, with 90% of consumers being more forgiving of companies that had a response plan in place prior to a breach. How to protect against ransomware attacks Experian’s 2022 Future of Fraud Forecast predicts that ransomware will be a significant fraud threat for companies as fraudsters will look for a sizeable ransom to cede control and potentially steal data from the hacked company. Preparing for the possibility of an attack includes training your staff to spot the signs of a phishing attempt, having a response plan in place, and leveraging partner solutions. To learn more about how Experian helps businesses protect against the fallout of a ransomware attack, visit us, and be sure to read about our other Future of Fraud predictions about cryptocurrency and Buy Now, Pay Later fraud. Request a call Future of Fraud Forecast

Cryptocurrency scams are on the rise as digital currencies gain popularity. The decentralized nature of these currencies makes them equally attractive to both legitimate consumers and fraudsters. Businesses may find themselves in a difficult position as they seek to prevent cryptocurrency-related fraud and help protect consumers. What are cryptocurrency scams? Cryptocurrencies are virtual currencies often based on and secured by blockchain technology. However, this does not always translate into security for the individual consumer. Many individuals fall victim to either cryptocurrency investment scams or cryptocurrency theft. Cryptocurrencies are not yet well-regulated or backed by a sovereign entity, leaving consumers open to threats when purchasing funds. The deregulated nature of the currencies makes it easy for scammers to build what appear to be legitimate cryptocurrency projects before disappearing, similar to pump-and-dump stock schemes. Additionally, scammers will perpetrate romance or other relationship-based scams and convince the victim to send them funds in cryptocurrency form. Cryptocurrency theft follows a few traditional fraud patterns: The fraudster may use phishing or social engineering to steal credentials. A crime ring might leverage malware or keystroke loggers to do the same thing. A scammer might present a “reward” to an unsuspecting consumer and require access to their wallet in order to “gift” the reward. Scammers consistently find new ways to trick unsuspecting consumers, including a recent scam relying on QR codes to steal funds converted to cryptocurrency via an ATM. Other common scams utilize imposter websites, fake mobile apps, bad tweets, or scamming emails to steal information and funds. The impact of scams on consumers According to the FTC, investment cryptocurrency scam reports have skyrocketed, with nearly 7,000 people reporting losses totaling more than $80 million from October 2020 to March 2021, with a media loss of $1,900. In 2020 the Better Business Bureau Scam Tracker Risk Report ranked cryptocurrency scams as the seventh riskiest. In 2021, they jumped to the second riskiest scam. In Michigan alone 31 cryptocurrency scams were reported from January 2020 to March 2022, with reported loses from $350 all the way to $41,000. The impact of scams on businesses While the true impact of cryptocurrency scams on businesses is hard to measure, it’s easy to identify several areas for concern. First is the opportunity for the theft of personally identifiable information (PII) during a fraudulent cryptocurrency transaction. Once fraudsters have stolen funds, they may also funnel them through a legitimate business and turn them into a regulated form of currency for easy of use. Businesses with legitimate cryptocurrency interactions may also suffer from spoofed apps or websites, causing reputational damage when consumers are taken in by a scam. Preventing the fallout from scams As companies debate accepting cryptocurrency as a form of payment, it’s important to consider that funds may be stolen or accessed by a malicious party. One way to protect your organization is to have a strong device identification strategy that can help ensure the entity accessing an account and the funds within is the true owner. By layering in this protection with other fraud defenses, businesses can be better prepared as consumer payment preferences shift. Additionally, financial institutions and other organizations should keep consumers informed about how to protect their own data and signs of scams. To learn more about how Experian is helping businesses develop and maintain effective fraud and identity solutions, visit us or request a call. And keep an eye out for additional in-depth explorations of our Future of Fraud Forecast. Request a call Future of Fraud Forecast

Experian’s latest Global Insights Report found that more than half of consumers have increased their online spending in the last three months, and 50% say it will increase in the next three months. Life online is here to stay, and consumer expectations have shifted, giving businesses and opportunity to sink or swim when building trust and gaining loyalty. This spring, Experian surveyed 6,000 consumers and 2,000 businesses across all industries to learn more about how, why, and where consumers are interacting with businesses online. Our research found that: Experience is top of mind, with 81% of consumers saying that a positive online experience makes them think more highly of a brand Digital payment options are on the rise with 62% of consumers using mobile wallets and 57% considering buy now, pay later as a replacement for their credit card Security is still a big factor, but 73% of consumers say the onus is on businesses to protect them online Download the report to get all the latest insights into consumer sentiment and how recent changes are impacting business priorities and investments. Download the report

What goals should you set to make financial inclusion a reality? How can success be quantified? This checklist can help you become more inclusive.

Learn how expanded FCRA-regulated data can be used to gain a more powerful and complete view of consumers' financial situations. Read more.