New research shows that digital fraud and its subsequent losses are expected to increase in 2023.
Co-op Solutions says three types of fraud are on track to increase: card-not-present fraud; phishing, smishing and vishing schemes; and account takeover or ATO.
Card-not-present fraud is projected to account for 90% of the $1.57 billion overall growth in total U.S. card fraud losses from 2022 to 2024.
“Phishers (email fraud) and smishers (text fraud) will often spoof popular brand names to encourage their victims to click through,” Co-op Solutions reported. “The top organizations impersonated by phishers worldwide included Microsoft (13% of attacks), Google (11%), Facebook (10%), Apple (10%) and PayPal (6%).”
ATO attacks have victimized more than one in five adults in the U.S., accounting for losses of $12,000 per victim, Co-op Solutions said.
The California CUSO said ATO fraudsters are leveraging “deep fake” attacks, which use synthetic IDs – a combination of real and phony identity data – to form a “new, composite person.”
Co-op Solutions said frequent and comprehensive member education is one of the best ways to counter digital fraud schemes.
“It’s important to offer your members a variety of fraud-prevention tools, such as self-service card controls and alerts like CardNav and multi-factor authentication through one-time passcode (OTP) and other means,” Co-op Solutions advised.