
Scams That Will Influence 2023
Fraudsters are increasingly turning to scams as traditional and effective fraud techniques like account takeover (ATO) operations have grown more difficult to execute.
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CIO Applications Europe | Wednesday, February 08, 2023

Fraudsters are increasingly turning to scams because they have two key factors working in their favour, economic uncertainty and the development of speedier payment methods.
FREMONT, CA: Fraudsters are increasingly turning to scams as traditional and effective fraud techniques like account takeover (ATO) operations have grown more difficult to execute. They currently have two key advantages working in their favour: economic uncertainty and the development of speedier payment technologies.
Individuals are more susceptible to falling for scams when they are insecure or desperate about their financial situations. This includes fraudulent jobless claims, bogus job offers, and even romantic fraud. In other words, scams swiftly adapt to the environment in which they operate. Additionally, con artists are growing more skilled and are aware of how to modify their methods such as phishing, vishing, etc. to be as successful as possible.
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Desperate Times May Push People to Commit Fraud
First-party fraud is on the rise with every economic crisis; examples include purchasing products, saying they never came and then asking for a refund. If a recession strikes again, both this trend to continue and an increase in second-party fraud cases. With responsibility shifting to banks, some consumers may give their information to others to receive a refund for a scam that never actually occurred, while others may take part in money-mule schemes and permit money launderers to access their bank accounts.
They also anticipate a surge in friendly fraud as economic uncertainty worsens; examples of this include family members using a relative's trust to access their money or one family member allowing another to use their personal information to apply for a loan or get a new credit card.
Advances in Technology May Enable Ever More Convincing and Scalable Deepfakes
Deepfakes have been increasingly used for fraud during the past year, and this trend is projected to continue through 2023. Although deepfake technology can be used to produce realistic-looking pictures of real people, it only depends on trickery. They anticipate that over the coming 12 months, generative AI technologies that can mimic a person's conversational and typing patterns will help to improve this kind of social engineering.
Through the use of favoured emojis and the ability to impersonate a person's speech through text or SMS, fraudsters will be able to convince victims to fall for schemes like CEO fraud or invoice fraud.
Social Media Platforms Might Turn into Fraud-as-a-service Tools
The recent Elon Musk takeover of Twitter and the changes made there have been very impossible to ignore. One of the most contentious changes is the fact that the verified blue check marks may now be purchased, turning the social media site into a haven for numerous scams.
Twitter is not the only social media network that may be used to commit fraud, as many others have done so unknowingly in recent years. Scammers spread their con games widely through the use of social media sites. Seventy-seven per cent of scams start on social media, e-commerce, or dating websites. If social media platforms are not controlled, they will effectively develop into "fraud-as-a-service" platforms, providing scammers with automated tools to spread their con games.
Crypto Scandals May Mean Fewer Crypto Investment Scams but Fraudsters Will Find Another Way
After FTX's demise, it is safe to conclude that the crypto winter has arrived. If there is any good news for the year ahead, it is that there will be fewer cryptocurrency scams as investors stop making decisions based solely on FOMO and start looking more closely at the market. Even though the risks associated with cryptocurrency have been widely disclosed, it is still likely to draw in new investors, therefore investors should proceed with caution and be prepared to provide frank answers.
Additionally, even though the appeal of cryptocurrency may be waning, there are still many other investment frauds to promote. Fraudsters will probably use their well-known high-pressure techniques to entice investors into phoney stock, gold, or other commodity-related scams.
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