Fraud protection through proactivity
How financial institutions can stay vigilant amidst evolving cybercrime
New fraud threats are constantly emerging because of the rapid increase in digital interactions and marked rise in the number of users interacting with merchants and financial institutions online and via mobile devices. Banks, credit unions, retailers and others are tasked with combatting the ever-mutating fraud threat through agile, preventative and comprehensive approaches.
Owing to the trend of popular migration to digital, account takeover fraud has been identified as the fastest-growing form of fraud. Account takeover losses increased 90% since 2020 to $11.4 billion in 2021, per the Javelin Strategy & Research 2022 Identity Fraud Study: The Virtual Battleground, representing about a quarter of all identity fraud losses in 2021. Being prepared to respond to and recover from fraud will always be essential, but a proactive approach can prevent millions of dollars in losses in the first place.
Threats on the Rise
As cybercrime evolves, data breaches have become a formidable threat to every industry. One trend that is causing significant loss to both consumers and financial institutions is impersonation through phone calls, emails and text messages. Fraudulent text messages were projected to account for approximately $28 billion in losses in 2022 alone, according to a RoboKiller report.
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