Emerging fraud trends for 2021 and beyond

Before we dive into this topic, I want to preface by saying, I know, no one wants to go back and think about 2020 (what a nightmare!), but if we’re going to have a discussion about emerging fraud trends in the payments space, we have to evaluate how business and consumer behavior changed in 2020 because of the pandemic and corresponding stay-at-home orders. I believe logic dictates that as society continues to move toward more digital interactions and faster payments, the volume of fraud incidents will increase.

In fact, according to LexisNexis, 42% of financial services firms experienced an increase in monthly fraud attempts in 2020 compared to 2019. As digital payment channels continue to increase in popularity and usage, firms will continue to develop and deploy new technologies to meet their consumers’ needs, so we can expect to see fraudsters get more creative and instances of fraud becoming more frequent.

In this blog post, we’ll explore a few fraud trends that your financial institution should be aware of, and discuss approaches you can employ to combat the risks.

 

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