Report: Global scam economy’ thriving in 2023 amid digital payment revolution

The COVID-19 pandemic brought about a significant revolution in digital payment, reshaping consumer expectations. Today, consumers demand real-time payment options throughout their online experiences, leading businesses to modernize and introduce various apps and offerings. However, this digital transformation has also created opportunities for criminals to exploit weaknesses in the system. A study on payments fraud, titled “Global Digital Fraud Trends: Evaluating The Past, Present, And Future,” conducted by Javelin and analytics leader SAS, delves into the fraud landscape in 12 countries and offers eight recommendations to tackle the escalating issue.

Grozdana Maric, Head of Regional Fraud & Security Intelligence, EMEA Emerging & Asia Pacific, emphasized that fraud and financial crime have evolved over the years, changing methods, channels, and tactics. In the Middle East, fraud has taken diverse forms, in line with global trends. With increased online activity due to digital adoption, fraudsters are targeting consumers’ fears and lack of knowledge, particularly exploiting the mobile experience and super apps widely used in the Middle East.

The shift towards digital transactions during the pandemic exposed consumers to new fraud avenues. Scammers capitalized on pandemic-themed schemes and socially engineered attacks. In 2023, the digital economy is here to stay, and the “global scam economy” continues to evolve. Romance scams, fake employment opportunities, and investment schemes are among the prevalent scams.

Fraud types vary by region, posing challenges for local authorities, anti-fraud professionals, law enforcement, and governments. While the threats are mostly identical globally, they manifest differently in different regions and nations.

The report offers eight recommendations to combat fraud in the digital age. Multifactor authentication and account-based alerts are deemed essential, not optional. Consolidating monitoring solutions on a powerful AI-driven platform is also crucial. A combination of machine learning models, biometrics, and contextual tools can enable faster and more accurate decision-making, helping financial service firms combat the increasingly sophisticated strategies employed by criminals worldwide.

Stu Bradley, Senior Vice President of Fraud & Security Intelligence at SAS, pointed out that US consumers lost over $8.8 billion to scams in the past year, representing a significant increase from previous years. Ensuring consumer trust in the expanding global digital payment ecosystem requires effective utilization of advanced customer authentication and anti-fraud technologies, including AI, machine learning, and biometrics, to detect and prevent fraud across all channels.