More consumers and businesses are using digital payment methods, which makes fraud prevention and risk management all the more important.
As these trends play out, it’s vital to stay ahead of the curve. Don’t get left behind with outdated fraud prevention strategies. Adapt your security processes to address emerging threats and keep your customers’ data protected.
Now more than ever, merchants need to be on their guard against emerging fraud threats.
Here are some of the major fraud trends that will impact businesses in 2022:
5 Fraud Trends to Track in 2022
Fraud teams are already overwhelmed by the volume of transactions they need to review. As automation becomes more prevalent in commerce and other business processes, it will also be adopted in fraud management — not only to increase efficiency but also to provide insights that help prevent fraud.
With proper infrastructure in place, automation can increase transaction velocity while simultaneously improving the accuracy of fraud decisions.
- Account Takeover
The growing use of cloud-based applications and services has made identity theft easier than ever for bad actors. Once account credentials are stolen, hackers are able to access sensitive information such as customer data or card numbers with relative ease, leading to increased losses for both customers and businesses alike.
- Crypto Attacks
Cryptocurrency attacks are increasing due to the popularity of Bitcoin and other cryptocurrency. Criminals will hack into wallets and steal money from crypto users, forcing them to pay ransoms or find other ways to regain access to their funds.
Phishing attacks are increasing and the trend will continue throughout 2022 as more people continue working from home where they have less security than in the office environment.
Phishing is a type of social engineering attack that uses fraudulent emails or websites to trick victims into sharing sensitive information such as credentials or credit card details.
Cybercriminals employ various methods to conceal their real identity, including spoofing email addresses, using links to fake websites, and using attachments or embedded code that redirects users to phishing sites.
- Digital Identities
While companies are spending more time and money on identity verification tools, fraudsters are finding increasingly sophisticated ways to bypass these measures and create fake digital identities to pose as legitimate users.
As fraudsters continue to find new ways to steal money, they are also getting more sophisticated in the methods they use. Businesses must track fraud trends and upgrade their security strategies to safeguard their bottom line.
Author BioBlair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high-risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.