Fraud is a growing problem in the banking industry, with an estimated five percent of corporate revenue lost to fraud every year. This translates to a staggering $4.7 trillion globally, and the situation is likely to worsen in 2023 due to the current economic crisis. As oil and food prices and interest rates continue to rise, more people will turn to criminal activity, including fraud, to make ends meet.
It's also getting easier to commit fraud, thanks to the rise of crime- or fraud-as-a-service (CaaS) packages available on the dark web and messaging platforms. These software packages can be rented or licensed for as little as $1,000 a month, making it increasingly easy for fraudsters to carry out their schemes.
Criminals are also proving to be adaptable, seizing on changing life and work patterns to stay ahead of law enforcement and fraud-mitigation efforts. Phishing scams, love, investment, and delivery scams, as well as deep fakes, will continue to be a threat in 2023. Additionally, we expect to see more fraud where criminals try to impersonate work colleagues in emails, taking advantage of the increase in remote work during the Covid-19 pandemic.
To combat these threats, companies are developing technology that uses artificial intelligence and machine learning to spot and stop fraud. Sharing information about frauds through initiatives such as NetGuardians’ Community Scoring & Intelligence Service is also becoming an increasingly important tool in the fight against fraudsters.
In conclusion, 2023 will be a challenging year for the banking industry as fraud continues to grow, but with the right solutions in place, it doesn't have to be an open season for fraudsters. With the help of technology such as AI and machine learning, banks can protect themselves and their customers from the increasing threat of fraud.
We at NetGuardians have released a new white paper, "The Top Banking Fraud Types to Watch in 2023." This comprehensive guide covers the full range of banking frauds that specialists are currently seeing, including case studies on verified fraud attempts of many different types. It also delves into the most effective technologies to combat fraud, highlighting why an AI-based approach is the key to detecting and preventing losses.
This white paper is a must-read for anyone in the banking industry looking to protect themselves and their customers from fraud. It offers valuable insights and actionable advice that can help you stay ahead of the curve in the fight against fraudsters. And the best part is, it's available for free download on our website. We encourage you to download it today and take the first step in safeguarding your business against fraud in the year ahead.
Mine Fornerod, Director of Marketing Communications at NetGuardians