By Kathleen Peters – Security Inforwatch.com – November 20, 2024
Companies are paying close attention to the growing use of advanced technology and what it means for their businesses.
Fraud attacks are at an all-time high. According to the FTC, in 2023, U.S. consumers reported losing more than $10 billion to fraud, a 14% increase over 2022 and the highest dollar amount ever reported.
Consumers and businesses alike are concerned about fraud, and rightly so. Generative AI (Gen AI) continues to create new, sophisticated fraud schemes, opening a world of challenges and opportunities for companies across industries as they navigate the ever-changing fraud landscape. When implementing fraud prevention strategies, businesses should consider consumer preferences regarding security while ensuring they don’t undermine the customer experience.
Consumers are growing more concerned with certain fraud types
As fraud becomes more prevalent in people’s lives, many are becoming resigned to the inevitable fraud. As consumers’ activities and habits evolve, they are instead becoming more worried about specific types of fraud. For example, Experian’s 2024 U.S. Identity and Fraud Report found that more than half of consumers say they are concerned about the risks associated with conducting activities online, with identity theft (84%) and stolen credit card information (80%) listed as their top online security concerns, representing a sizeable jump of more than 20% from the previous year for both types. Online privacy (67%), phishing emails or phone scams (65%), and false information or fake news and ads (49%) round out people’s top five online security concerns.
With people feeling more cautious about online activities, 82% of consumers say they expect businesses to react to their fraud concerns, and 63% say it’s extremely or very important for businesses to recognize them online.