Top 5 Fraud Trends In The Era Of Covid-19
The global Covid-19 pandemic has opened a wide door for financial services and bank fraud. With more banking occurring off-site and on mobile devices, here’s the five fraud trends financial institutions should look for in the coming years.
1. APP and Wire Transfer Fraud
Over the course of the pandemic, one of the most common fraud attacks were authorized push or wire transfer payment fraud, accounting for 41% of all financial institution frauds. This trend is growing.
2. Account takeover fraud
About 37% of the frauds committed against financial institutions came in the form of account takeovers. This is when a criminal accesses an account that doesn’t belong to him and makes unauthorized transactions.
3. Account opening fraud
Account opening fraud occurs when fraudsters use stolen personal information of unsuspecting victims to open new accounts for criminal activity like borrowing money in another person’s name or applying for a mortgage.
4. Transaction payment fraud
This type of fraud occurs when fraudsters conduct unauthorized transaction using stolen data or payment details. Frauds involving Transaction Payment occur on both small-scale levels as well as the large criminal organizational level.
5. Synthetic identity fraud
The latest trend in financial frauds involves Synthetic Identities. Criminals use a mix of fake and real data to create new identities of people who do not exist. They then open accounts, take out loans and scam banks for millions.
How to Detect and Prevent These Fraud Trends Implement the ToolCASE Suite of Anti-Fraud Technologies
ToolCASE, an American company out of Denver, CO offers banks and other financial institutions the world’s most advanced transactional Ai systems. Their simple to use, real-time anti-fraud tools can help banks and FI’s not only detect fraudulent activities live, as they’re happening, but they can prevent the fraudsters from getting away crimes… and your institutions funds.