The report details the “increasingly sophisticated—and often automated—tactics cybercriminals leverage to commit payment fraud.” The massive spike in payments-related cybercrime correlates with a 121% growth in transaction volume, making the sector a particularly appealing target. The Sift analysis also emphasizes the potential damage these attacks can do to the companies targeted by the fraudsters and points out the lasting impact they can have even after the initial damage has been addressed.
“Many brands fail to realize that the damage of payment fraud goes beyond the initial financial impact,” said Jane Lee, Trust and Safety Architect at Sift, in a statement. “The vast majority of consumers report abandoning brands after they experience fraud on a business’ website or app, diminishing customer lifetime value and driving up acquisition costs. Further, potential customers who see unauthorized charges from a particular company on their bank statements will forever associate that brand with fraud.”
According to the analysis, the attacks have been aimed primarily at targets like digital wallets, which rose close to 200% in identified payments fraud. Activities against service providers and cryptocurrency exchanges jumped 169% and 140%, respectively, notes the survey.
“In order to combat these attacks and grow revenue, businesses should look to adopt a Digital Trust & Safety strategy—one that focuses on preventing fraud while streamlining the experience for their customers,” Lee said.
From Twitter
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Another area of apparent opportunity has been the burgeoning buy now/pay later sector, which witnessed a 54% uptick in year-over-year attack rates.
“In late 2021, Sift’s Trust and Safety Architects discovered a growing number of fraud schemes on Telegram offering unlimited access to BNPL accounts through fake credit card numbers and compromised email addresses—showcasing the array of methods actors in the Fraud Economy are using to target the entire fintech sector,” reads the announcement.
From Twitter
"Sil - #FreeUkraine @_silvino Germany warns against using Kaspersky software citing ‘considerable’ cyber risk after Russia’s invasion | March 15, 2022 at 04:11PM | https://tcrn.ch/3JrL5ZO #Blockchain #Innovation #Fintech #AI #ML #Cybersecurity"
Anti-fraud and cybersecurity measures have become increasingly salient in recent months as regulators around the world have worked diligently toward developing legal and enforcement solutions in the fintech space. Recently, President Joe Biden signed a sweeping Executive Order outlining broad plans in the U.S. to address risks in the fintech industry. Among those priorities included in that order are consumer protection and combatting illicit finance, according to the White House.
