According to Sift, a digital trust and safety company, financial institutions will encounter payment fraud.
According to the most recent analysis from digital trust and safety business Sift, it is no longer a question of if financial institutions will experience payment fraud; rather, it is a matter of “when, from where, at what scale, and for how long” fraud attacks occur.
The ease with which customers can commit financial fraud is highlighted by the Sift Q1 2023 Digital Trust & Safety Index. In its research, 16% of respondents admitted to online theft or knew someone who did.
Whether they accepted the offers or not, another 17% of customers said they had come across fraud-related offers online. Sift acknowledges the start of a new era: the democratization of fraud, and the findings present an unsettling picture of the future for enterprises.
Anyone with an internet connection may perpetrate online fraud, and this trend is certain to continue. Seasoned internet crooks are now targeting Telegram and TikTok users. These fraudsters have scaled their networks and activity due to a fraud-as-a-service business model that benefits from fraud growth and successful attacks.
Sometimes a fraudster will hack into a system, use malware, or launch a phishing attempt to acquire credit card information. To build a following, this fraudster makes use of groups on a deep web forum. They might then market the credit card information they stole to potential customers.
Developing a trust and safety plan for the internet
The Sift report’s results raise concerns for both consumers and businesses. 20% of victims of payment fraud don’t know what happened to their personal information after it was compromised. These individuals are unaware of who has access to their personal information or how much of it they have accessed. Additionally, they are unaware of the harm that the stolen data is causing to other customers and organizations.
The report’s conclusions were discussed by Jane Lee, a trust and safety architect at Sift. Lee stated: “The rapid democratisation of fraud presents even more opportunities for motivated criminals to expand their reach by ‘productising’ their offerings and selling their services to commit fraud against businesses.”
Then she said that trust and safety operations are now the only thing that can make or break a business. It’s because online fraud is becoming more and more common. Companies must use the correct technology and implement a digital trust and safety strategy to prevent payment fraud and grow.