The Financial Fraud Boom

The Covid-19 pandemic has left behind fertile soil for financial fraud all over the world. We have seen schools close down, businesses board up their windows, and people forced to work from home or even worst, lose their jobs.

According to financial institutions and federal agencies, financial fraud has tripled as a byproduct of these events. Much of the fraud has been targeted towards those who are receiving stimulus checks and the elderly. CNBC calculates an average loss of $500 for people in their 70s and $900 for those in their 80s.

The effects of the covid-19 pandemic have also forced banks to tighten their security protocols in order to protect their customers, especially the elderly.

Banks have always been the primary target for cybercriminals. Criminal try to gain access to various accounts through a method called phishing.

Phishing is a cybercrime method that uses email, telephone, or text messaging to trick unsuspecting victims into revealing valuable personal information. Cybercriminals will go as far as to pose as an IT employee of an individual’s company to gain access to their computers, passwords, and other various personal information. According to KnowBe4, Phishing attacks have increased by over 667% since March of 2020.

According to the Nilson Report, payment card fraud losses eclipsed 28.65 billion worldwide in 2019. The united states account for over 1/3 of total losses with about 11 billion and the covid-19 pandemic has added more unwanted fuel to the fire. Financial fraud has been described as an arms race. No matter how new and secure fraud investigation software become, it is only a matter of time until they are rendered obsolete. According to experts, even Acts that have been emplaced to counter against card fraud such as the Fair Credit Billing Act, The Electronic Transfer Act, and Regulations E and Z will not be enough to protect small businesses from fraudulent transaction activities.

Organizations and individuals need to prepare and protect themselves for the future. This isn’t the first time there has been a financial fraud epidemic nor will it be the last.

Financial fraud rates tend to increase significantly during times of economic crisis, the 2008 recession is an example of this fact. In a survey conducted by the Association of certified fraud examiners on anti-fraud organization, a majority reported a significant increase in the number of frauds in their organization. In a 2019 global fraud survey, the financial statement fraud cost was an average of $8.7 million.

During Covid-19 alone, fraud cost the government $382 million, and this cost will most likely to increase in the coming years. it is crucial to be protect you and your family from any potential fraud attempts. For more information about fraud detection and protecting visit https://efraudservices.com/