Fraud Trends for the Future: Emerging Schemes and Prevention Strategies

To effectively perform real-time assessment on these aspects, many companies use the latest technological applications. Fraud detection systems use real-time transaction risk scoring algorithms to identify questionable purchases or payments. These systems consider transaction details, user profiles, behavioral biometrics, geolocation, IP/device metadata, account information, and more.

The advancement of artificial intelligence and machine learning are also aspects that have advanced our ability to perform real-time risk assessments. We discuss these concepts and how they are used. This course focuses on step one and two when performing a real-time fraud risk assessment. Those steps include:

• Step One - Planning
• Step Two - Identifying Risk

Future courses will cover the remaining steps in the process.

An issue that is becoming more critical to companies relates to the need for real-time fraud risk assessments. But what does that really mean?

Most are comfortable and aware of the term risk assessment. A fraud risk assessment is aimed at proactively addressing a business’s vulnerabilities to internal and external fraud. This includes:

• Types of fraud vary by business line
• Internal frauds include embezzlement and misappropriation of assets
• External frauds include hacking and theft of proprietary information

But the concept of a risk assessment typically implies a process that is conducted on a periodic basis.

Studies have shown the system has reduced fraud losses in the U.S. by 70% since 1992, when real-time fraud detection was introduced.

This course compliments the course on Fraud Trends for the Future – Need For a Real-time Fraud Risk assessment Part 1 and delves further into the elements that comprise a real-time fraud risk assessment or detection process.

This course is one part in our ongoing series on Fraud Trends in the Future. This specific course focuses on Targeted Attacks. In a targeted attack, your organization is singled out because the attacker has a specific interest in your business or has been paid to target you. The groundwork for the attack could take months so that they can find the best route to deliver their exploit directly to your systems (or users). In this course we discuss the types of targeted attacks, phases of targeted attacks and mitigation methods.

Fraudsters seek new ways to exploit private information. Cybercrime and fraud prevention is an evolving field based on varied tactics used by fraudsters. In order to be prepared to mitigate fraud risks, you must understand the current fraud trends. The initial segment of this series will focus on fraud trends that have been identified for 2023 and beyond. Broadly, these trends include:

• Automation
• Account Takeover
• Adoption of new digital payment methods
• Balancing fraud and consumer friction
• Rise of synthetic identities
• Escalating cost of fraud
• Targeted attacks
• Strong need for real-time assessment
• Need for multi-layered fraud assessment
• Account security