Learn How These Three Trends Are Redefining Fraud in 2022

Learn How These Three Trends Are Redefining Fraud in 2022

by October 26, 2022

When the global economy fluctuates, so does fraud. With so many forms of global disruption, fraudsters learn to find new vulnerabilities to exploit, driving fraud rates up across markets.

Effectively managing fraud operations and staying ahead of attacks takes accurate, complete data, no matter the economic conditions.

Failing to keep up with evolving fraud can shrink profits, and damage consumer trust and brand loyalty.

Businesses need solutions in place to protect the entire user journey and make fraud operations more efficient.

Building resilience despite economic uncertainty

Given the uncertainty of current economic conditions, many businesses are being extremely careful with their spending.

In fact, 26% of trust and safety teams surveyed by Sift between July and August reported economy-related resource or budget constraints.

In turn, risk teams are being asked to handle more fraud with less support.

Some businesses may try to find solutions in-house before turning to a solution in the market, but this typically requires additional engineering resources and budget that may be hard to come by.

Solutions that require minimal engineering effort, including machine learning platforms like Sift, can help reduce the burden on fraud teams by detecting suspicious fraud activity in real time.

Surfacing insights through disconnected data

Nearly half (45%) of trust and safety experts surveyed by Sift are re-evaluating what their businesses need to fight evolving fraud in a changing economy.

For many fraud analysts, this means having too many tools to juggle, leading to disconnected data and inaccurate decisions.

In order to navigate an unpredictable future, teams need a solution they can trust to accurately and efficiently block fraud.

With a solution powered by machine learning, teams can quickly surface meaningful data and make better decisions.

At Sift, we’re constantly evaluating how our solutions improve at detecting fraud and making analysts’ lives easier.

Sift Connect, for example, helps fraud teams integrate existing applications to increase productivity and improve overall fraud operations.

Minimising losses in the face of rising fraud

Despite businesses’ efforts to shield fraud with 3DS or 2FA, transaction fraud is still running rampant.

Since January 2022, 68% of trust and safety experts surveyed by Sift reported seeing a spike in fraud across their businesses.

Specifically, throughout APAC markets, we’re seeing more fraudsters using stolen IDs to open fraudulent accounts on platforms.

To help combat this form of fraud, Sift’s partnership with Jumio allows businesses to verify the identity of users while also delivering a smooth customer experience.

Fraudsters also target markets where they have the highest chance of going unnoticed.

Crypto accounts for example, may be left dormant due to market volatility, leaving the door open for fraudsters to steal financial data or loyalty points tied to those accounts.

And with more consumers turning to buy now, pay later (BNPL) services, cybercriminals are finding even more pathways to commit fraud.

Across the Sift network, BNPL payment fraud attack rates increased 95% during the first half of 2022 compared to H1 2021.

Sift join forces with Jumio and Checkout.com to help companies combat fraud

To secure the post-transaction phase of the user journey, Sift has joined forces with Checkout.com to improve accuracy and simplify decisions by consolidating dispute data.

Businesses should be aware that the fraud landscape can change seemingly overnight, and that this requires implementing sophisticated solutions.

Because fraudsters are skilled at finding gaps in the system to exploit, companies must be equipped with a tightly integrated strategy to successfully prevent fraud.

Sift’s Digital Trust & Safety Platform eliminates the need for point solutions with a single platform to manage every aspect of fraud operations.

Organisations can connect multiple tools with robust, real-time data and intelligent automation at every touchpoint.

To help businesses outmaneuver changing abuse tactics and ensure consumer safety, Sift has developed an e-book in collaboration with Jumio and Checkout.com.

Explore the guide to discover more insights on how these emerging market trends are redefining fraud.