As technology continues to advance, it’s reasonable to assume the future of online fraud will become more sophisticated and harder to detect. Cybercriminals will likely develop new methods of stealing personal and financial information, such as through social media tactics and advanced malware found on computers and in mobile apps.
It’s crucial for individuals and businesses to stay vigilant and take steps to protect their online identity and data, such as using strong passwords, enabling two-factor authentication, and keeping their software up-to-date. Additionally, as the use of cryptocurrencies and other decentralised systems become more widespread, new forms of online fraud may emerge. It is important for individuals to stay informed and educated about these emerging threats to stay protected in the rapidly evolving digital landscape.
In our latest article, FraudWatch discusses the future of online fraud and what to expect in the next decade.
Cybersecurity trends in 2023 and beyond
Juniper Research’s recent study predicted that online payment fraud will exceed $343 billion globally from 2023 to 2027. Online scams can take various forms and often involve the use of misleading or fraudulent emails, websites, or social media messages that appear to be legitimate in order to steal money, personal information, or other valuable assets from unsuspecting victims.
The most common cybersecurity trends set to take off in 2023 and beyond are listed below:
Digital identity and deep fakes
The use of identity documents (a long-winded process that customers have had to go through) are now being replaced by facial and/or voice recognition. For financial institutions that incorporate facial or voice recognition, they will be under attack from deep fakes the most, as synthetic accounts are being used to create financial accounts.
Account opening and fraud
Obtained through phishing scams or data breaches, scammers obtain personal information (such as a full name, date of birth and home address) to open a bank account or credit card account. Then, fraudulent transactions are made, such as purchases or cash withdrawals.
With more public investors taking part in crypto exchanges, the scammers have as well by laundering billions worth of stolen cryptocurrency. Furthermore, cryptocurrency has also been associated with ransomware. As scammers exploit vulnerabilities, phishing, routing attacks and account takeovers are occurring on blockchain networks.
Faster fraud; faster payments
Both consumers and retailers want fast and seamless transactions, instantly. These fast payments open the window for fast fraud. In particular, scammers will send an email communication to an individual within a company, posing as a stakeholder or business owner, in order to have payments in the form of gift cards sent immediately.
Social media scams
Romance scams aren’t new, but fake merchandise, charity scams, fake jobs, and investment scams are now popping up all over social media. The end result is account takeover, money mule activity, and/or identity theft.
Google Voice scams
By exploiting the features of Google Voice, scammers make and receive calls and messages using a Google Voice number. These scams can be as elaborate as posing as a legitimate company (such as a bank or credit card company) and using spoofing techniques to make it appear as if the call is coming from a legitimate phone number.
How will these cybersecurity trends impact your business’ digital security?
AI-related technology should be at the forefront of an organisation’s strategy to prevent fraud. For example, financial institutions such as regional banks are benefiting from advanced AI and machine learning-powered solutions to tackle specific fraud prevention challenges and risks.
However, AI becomes a double-edged sword, as depending too heavily on AI for fraud detection can result in problems such as false positives and overlooked warning signs. In some cases, the system may mistakenly flag legitimate customers as suspicious, while at other times, it may fail to catch fraudulent transactions that go unnoticed.
At FraudWatch, we provide a variety of brand protection for businesses and organisations across the globe. We’ve been leaders in anti-phishing, email security and cyberintelligence services since 2003. Need a site takedown due to cyber threats? We’re the ones to trust. Contact our brand protection experts today.