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Digital fraud will cause $48 billion in losses by 2023

In recent years there has been a significant increase in the number of digital frauds carried out over the Internet. This type of crime can take many different forms, such as credit card fraud, identity theft, and cyber attacks. That’s when solutions like payShield 10K make a difference.

According to
study by Juniper Research
global losses from digital fraud are expected to reach $48 billion by 2023. This is up from the estimated $22 billion in 2018. The increase is due to several factors, including the growth of e-commerce and the increasing sophistication of fraudsters.

There are a number of steps that companies can take to protect themselves from digital fraud. Stay with us until the end of the article to better understand this threat scenario and see important tips that we have separated to minimize the risk of scams in your company.

Lack of analytical maturity of organizations is one of the causes of the growth of digital fraud

According to
study by Serasa Experian
, by March 2022, 389,788 fraud attempts were registered, representing an increase of 18.9% over the same period in 2021.

In practice, this means that every 7 seconds a Brazilian is a victim of fraudsters. The segment that has suffered most from this is retail, with a 74.1% increase in digital fraud attempts.

Basically, digital fraud is the use of illicit techniques to gain undue advantage. However, the modality is very broad and can take on different formats.

One of the main strategies used by criminals is phishing, which consists of creating fake websites to obtain personal data from the victims.

Another modality is identity theft, where criminals use the stolen information to make purchases or access bank accounts.

The main forms of digital fraud recorded are:

  • Online credit card scamsOnline credit card scams: This type of crime is committed when the criminal obtains personal information from users, such as credit card number, expiration date, and security code, in order to make online purchases in their name;
  • Identity theftIdentity theft: This crime occurs when a criminal uses another person’s identity to gain financial advantages, such as opening accounts in his or her name or applying for loans;
  • Bank fraudDigital fraud: This type of digital fraud happens when the criminal is able to access someone else’s bank account and make transfers to your account.

The lack of analytical maturity of organizations is one of the main causes of the growth of digital fraud. Many companies still do not invest in data analysis systems that can detect fraud attempts, making the criminals’ job easier.

In addition, the growth of e-commerce has also contributed to the increase in digital scams, as criminals have found it easier to attack companies that offer online services.

What are the consequences of digital fraud for businesses and consumers?

Digital fraud is a serious problem that can have devastating consequences for businesses and consumers. In the business world, digital fraud can result in:

  • Financial losses for the company: once a company is a victim of digital fraud, it can suffer significant financial losses. This is because fraud can lead to the loss of money, as well as the expenses incurred to investigate and reverse the damage caused by fraudsters;
  • Damage to the company’s reputation: Besides causing financial losses, digital fraud can also damage a company’s reputation. When consumers are victims of fraud, they can become frustrated and angry, which can negatively affect the brand image;
  • Increased risk to cybersecurity: Digital fraud can also increase the risk of other cyber attacks, because fraudsters can use the information obtained to carry out new attacks. In addition, companies that suffer from digital fraud may be more vulnerable to other types of attacks, as fraudsters can exploit the company’s security flaws to carry out their attacks.

Thus, it is clear that digital fraud can cause serious harm to businesses and consumers. It is therefore important that companies take steps to protect themselves against this type of attack, as well as to investigate and reverse the damage done by fraudsters.

How to avoid digital fraud in companies?

There are several ways to avoid digital fraud, both for businesses and consumers. For businesses, the top tips for avoiding digital fraud are:

  1. Implement security measures: companies must implement security measures to protect company data and systems against cyber-attacks. These measures can include implementing a firewall, encrypting data, controlling access, and other security measures;
  2. Investigate suspicious transactions: organizations must also investigate suspicious transactions to identify possible digital fraud. This can include checking data such as IP address, credit card number, and other information that might indicate a cyber attack.

For the workforce, the top tips for avoiding digital fraud are:

  • Be careful what you share on social networks: Consumers should be careful what they share on social networks, because the information they share can be used to carry out cyber attacks;
  • Check URLs before clicking: employees should also check URLs before clicking, because sometimes fraudsters use fake URLs to trick people into going to malicious sites;
  • Backing up data: although it is something very technical and usually done by IT teams, employees need to be aware of the backup processes for important data, as this can help recover lost information in the event of a cyber attack.

In addition to these tips, companies and their employees should also keep an eye out for digital fraud attempts and report any suspected cyberattacks to the proper authorities.

Digital fraud is a growing problem in the business world, and can cause serious harm to businesses and consumers.

Therefore, it is important to take steps to protect yourself against this type of attack, as well as to investigate and reverse the damage done by fraudsters.

payShield 10K ensures payment security and combats digital crime

With payShield 10K you are assured that your company meets the highest security standards in the financial industry, including protection against fraud.

With payShield 10K, the fifth generation of payment HSMs from Thales, an EVAL partner company, offers a suite of proven security features in critical environments, in addition to transaction processing, protection of sensitive data, issuance of payment credentials, mobile card acceptance, and tokenization.

The payShield 10K solution can be used throughout the global payments ecosystem by issuers, service providers, acquirers, processors, and payment networks, offering a number of benefits.

EVAL Professional Services has a team of specialized professionals with the best practices in the market

Benefit from our many years of experience and expertise in information security and LGPD compliance. We will be your partner for realizing digitization projects in compliance with security and data protection regulations.

We share our expertise across all business flows in healthcare organizations to help you minimize risk, maximize performance, and ensure the data protection your patients and partners expect.

About Eval

With a track record of leadership and innovation dating back to 2004, Eval not only keeps up with technological trends, but we are also in an incessant quest to bring news by offering solutions and services that make a difference to people’s lives.

With value recognized by the market, EVAL’s solutions and services meet the highest regulatory standards of public and private organizations, such as SBIS, ITI, PCI DSS, and LGPD. In practice, we promote information security and compliance, increase companies’ operational efficiency, and reduce costs.

Innovate now, lead always: get to know Eval’s solutions and services and take your company to the next level.

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