State of Fraud: Digital Growth, Increased Fraud & Rising Trends for 2022
February 3, 2022
67% of the global population now uses a mobile device. Whether it’s digital banking, telehealth or online gaming, companies are adapting their services to consumer demand. But with the expansion of digital comes the increased likelihood of fraud, especially with the exponential growth of phishing and cyberattacks.
Different Types of Fraud
From fraud in online marketplaces, phishing attacks, social media scams, exploiting the US’s Paycheck Protection Program (PPP) with synthetic identity fraud or stealing billions in cryptocurrency, fraudsters were busy in 2021 in the United States and around the world. Unfortunately, based on recent trends, the threat of cyberattacks, identity theft and fraud is expected to continue into the new year (and beyond).
Identity Theft Awareness
This week (January 31-February 4), the US’s Federal Trade Commission (FTC) is running the Identity Theft Awareness Week campaign to bring awareness to the growing threat of identity theft. It’s a timely reminder of the importance of a secure digital identity and of protecting one’s data privacy. And while individuals need to be cautious (and smart) with where, how and with whom they share their information when online, companies that handle consumers data also need to ensure they are protecting the data privacy of their customers or find themselves facing costly fines.
Investing in fraud prevention will be key in 2022; according to a recent Experian survey, 65% of companies intend to increase their fraud prevention budget in the coming year. Companies must have the right technologies in place to detect fraud while also complying with anti-money laundering regulations. With the rising threat of fraud, it will be more important than ever for companies in all industries to ensure they have a complete identity proofing platform that includes identity verification, Know Your Customer (KYC) and Anti-Money Laundering (AML) solutions to ensure trustworthy customers, protect consumer privacy and prevent fraud and financial crime.
Want to learn more? Download our new State of Fraud Report to see the different types of fraud that happened in 2021 and the trends to expect in 2022.