Top Fraud Trends for 2024 & How to Prevent Them

1
Top Fraud Trends for 2024 How to Prevent Them
https//cybernewslive.com/
2
Summary The impending shifts in fraudulent
activities, from the clandestine world of
cyber-crime-as-a-service to the heightened
sophistication of social engineering attacks,
beckon enterprises to fortify their defences.
Understanding these emerging trends is not merely
a proactive measure it serves as the linchpin
for orchestrating a resilient defence against the
unseen forces poised to exploit vulnerabilities.
This narrative deciphers the enigma of the top
fraud trends for 2024, shedding light on the path
to prevention and fortification in the realm of
cybersecurity. From the AI-fueled advancements
propelling deepfake technology to the escalating
risks of synthetic identity theft, account
takeover fraud, and card-not-present (CNP) fraud,
each trend underscores the imperative for
businesses to be vigilant custodians of their
digital fortresses. Insider threats, social
engineering attacks in the age of remote work,
the proliferation of cybercrime-as-a-service, and
the exacerbating impact of cybersecurity skills
shortages further accentuate the multifaceted
challenges on the horizon.
3
In the intricate dance between technological
innovation and criminal ingenuity, the realm of
fraud continually evolves, presenting new
challenges and pitfalls for businesses. As we
step into the horizon of 2024, the landscape of
fraudulent activities is poised for dynamic
shifts. From the clandestine realms of
cyber-crime-as-a-service to the ever-increasing
sophistication of social engineering attacks, the
top fraud trends for the coming year beckon
businesses to fortify their defences. In this
unfolding narrative of digital deception,
understanding the emerging trends is not just a
proactive measure but the key to orchestrating a
resilient defence against unseen forces seeking
to exploit vulnerabilities. Join us as we unravel
the enigma of the top fraud trends for 2024 and
illuminate the path toward prevention and
cybersecurity fortification.
4
Top 8 fraud risk trends to watch out for in 2024.
1. AI-Fueled Advancements Propel Deepfake
Technology Deepfake technology, stemming from the
amalgamation of deep learning and fake,
leverages artificial intelligence (AI) to create
convincing fake audio, video, or images. This
technology can impersonate individuals, leading
to identity theft and posing a threat to
businesses. Deepfake applications extend to
simulating speech, actions, and emotions with
remarkable realism.
5
While deepfakes are increasingly prevalent on
social media platforms, their application can
extend to defrauding businesses by dumping
employees into compromising sensitive
information, releasing funds, or engaging in
fraudulent transactions. Reports indicate that
the number of deepfakes has been doubling every
six months since 2018, indicating persistent
growth, particularly with recent advancements in
AI technology.
6
2. Detecting Synthetic Identity Theft Becomes
More Difficult Research conducted by GDG reveals
that more than 8.6 million people in the UK have
used fake or someone elses identities, either in
person or online, to obtain goods, services, or
credit. Synthetic identity theft involves a
combination of authentic elements, such as real
addresses, and fabricated information, making it
exceptionally challenging to identify and
prevent. The use of legitimate components
alongside false details complicates detection
efforts. Additionally, since these fraudulent
identities lack prior credit history or
associated suspicious activities, they can elude
traditional fraud detection systems relying on
historical data patterns.
7
3. Steep Rise in Account Takeover Fraud Account
takeover (ATO) fraud occurs when criminals gain
unauthorised access to genuine consumer accounts,
such as social media, email, or bank accounts,
using stolen information. ATO fraud witnessed a
significant 350 year-on-year increase in 2020,
with financial services firms experiencing 72 of
these attacks. In 2021, account takeovers
contributed to 20 of data breaches, resulting in
losses exceeding 5.1 billion for consumers and
businesses. This underscores the urgency for
financial institutions to proactively safeguard
their customers and serves as a stark warning to
other industries about the serious threat posed
by account takeovers that demand vigilance and
preventive measures.
8
4. Businesses are more Vulnerable to Liability
for Card-Not-Present Fraud Card-not-present fraud
(CNP) occurs when consumers make online,
telephone, or mail payments, where the card is
not physically presented to the merchant for
verification. In cases where a cardholders
billing information is compromised, unauthorised
individuals may use the card for illicit
purchases. The surge in e-commerce, coupled with
consumer demands for swift online transactions,
creates ample opportunities for fraudsters to
exploit vulnerabilities in online payment
systems, manipulate checkout processes, or employ
stolen card details for fraudulent
transactions. Unfortunately, in many instances
of CNP fraud, the merchant bears the financial
liability instead of the card issuer or
cardholder. This places the responsibility of
preventing and absorbing losses related to CNP
fraud squarely on businesses, heightening their
exposure to financial risks.
9
5. Elevated Fraud Risk from Insider Threats While
organisations must remain vigilant against
external threats, insider threats have surged by
44 in recent years. Insider threats can arise
from the actions of current or former employees,
customers, or suppliers, either due to malicious
intent or negligence. Employees with privileged
access represent the highest fraud risk for
businesses. In many cases, insider threats are
motivated by financial gain, competitive
advantages, or revenge. For instance, 45 of
employees download, save, or send work documents
to their accounts after leaving a job to impress
new employers. This sharing of company documents,
contracts, spreadsheets, or customer information
poses a significant risk to all parties involved.
10
Given the increasing employee turnover in the UK,
organisations must take proactive measures to
mitigate these risks. To minimise the threat of
insider incidents, internal controls, stringent
work policies, periodic audits, and the
cultivation of a strong ethical culture are
essential. When dealing with third-party threats,
businesses should conduct thorough due diligence,
monitor third-party activities, and establish
contractual obligations to mitigate the risk of
fraud through external partners.
11
6. Social Engineering Attacks in the Era of
Remote Work Social engineering doesnt involve a
direct cyber-attack instead, it leverages human
psychology to persuade individuals to lower their
guard and engage in unsafe activities, such as
divulging sensitive information or clicking on
malicious links. Phishing, a type of social
engineering, requires fraudsters to impersonate
trustworthy entities such as banks, government
agencies, or trusted organisations to trick
people into providing personal information such
as passwords or credit card information.
12
With the prevalence of remote work, social
engineering attacks are on the rise. A study
indicates that 9 out of 10 respondents believe
the threat landscape has worsened, with 75
attributing this deterioration to remote work.
Social engineering attackers exploit the
increased online communication, with messaging
and emails being the primary forms of
organisational communication. In a remote work
scenario, employees may be more inclined to
respond to requests or click on links without
proper scrutiny, especially if the communication
appears to come from colleagues or superiors
during non-working hours. Remote workers who lack
security awareness and education may be more
vulnerable to social engineering tactics.
13
7. Proliferation of Cybercrime-as-a-Service Cyberc
rime-as-a-Service (CaaS) equates to the selling
of cybercriminal tools, techniques, and services
that are easily accessible on the dark web. This
accessibility allows individuals with limited
technical expertise to participate in
cybercriminal activities. The widespread
availability and affordability of CaaS create a
larger pool of cybercriminals targeting
businesses. Malicious services offered include
malware distribution, ransomware-as-a-service,
and marketplaces for stolen data.
14
8. Escalation of Cyber Threats Due to Shortages
in Cybersecurity Skills Forbes reports that the
shortage of cybersecurity skills significantly
contributes to the evolving landscape of fraud
risks. The current global skills shortage is
estimated at 3.5 million, posing a growing
concern for numerous organisations unless they
address this gap through outsourcing, training,
and retaining top cybersecurity talent. It is
crucial to establish future-proof solutions to
mitigate the ever-changing landscape of financial
crime risks.
15
The Final Thought
As we travel through the unknown waters of 2024,
the world of fraud reveals its intricate
tapestry, woven with both innovation and peril.
Businesses are at a crossroads due to
cybercrime-as-a-service, social engineering
prowess, and the ongoing dance between criminals
and cybersecurity. The story of emerging fraud
trends serves as both a cautionary tale and a
catalyst for resilience and vigilance. The tools
to combat these digital adversaries are available
and waiting to be embraced by those seeking not
just protection but mastery over the intricate
choreography of the digital age. Let the
knowledge of these fraud trends be the compass
guiding us toward a fortified future, where
businesses stand as bastions against the tides of
cyber deception, ensuring that innovation becomes
a force for good rather than a veil for
malevolence.
16
CTA
Gain insights, strategies, and expert advice to
safeguard your business in the ever-changing
landscape of cybersecurity. Get updates for
everything with Cyber News Live.
17
THANK YOU!
Website
https//cybernewslive.com/
Phone Number
1 571 446 8874
Email Address
contact_at_cybernewslive.com