Financial crime continues to reach new heights across the globe.
The Justice Committee revealed that fraudsters scammed consumers out of a record £1.3 billion in the UK alone last year. This enormous sum is the result of fraud’s many guises as well as its wide range of targets, which includes everyone from individuals to businesses and governments.
Fraud has seen enormous growth, particularly in recent years. Owing to a difficult economic climate and the transition to digital banking throughout the Covid-19 pandemic, by midway through 2021, online fraud saw a rise of 285% compared to the previous year.
In part, its prominence has been driven by explosive growth in the fintech sector more generally. By delivering efficient and seamless customer experiences, rapid decision-making and fast payment processes, all while lowering costs, the fintech sector has shown rapid expansion.
Although these developments are hugely important for the financial services (FS) industry at large, innovation does not come without concern. In today’s climate, fraudsters are taking advantage of the digital transition and attempting to leverage evolving technology to their advantage.
The growing threat of fraud
The simple truth about fraudsters is that they’re often incredibly gifted liars. They’re adept at developing social engineering scams, sometimes known as imposter scams, in which they slowly build trust with an unsuspecting victim to later trick them into revealing sensitive information. Fraudsters using these methods tend to target people on an individual basis, but these scams can come in many shapes and sizes.