Digital Trust & Safety Roundup: Economic uncertainty, fintech fraud, and crypto cons

Just as changing seasons can mean a shift in consumer behavior, they can also cause a shift in fraud patterns, as cybercriminals adapt and adjust their tactics. In the below roundup, our Trust and Safety Architects share insights on current fraud trends and what fraud looks like in times of economic uncertainty. Read on to learn strategies to recession-proof your fraud prevention approach, why fintech is facing an increase in fraud attacks, and what’s behind the proliferation of crypto-based romance scams.

Economic uncertainty = fraud opportunity

While news of economic uncertainty is usually cause for concern, fraudsters see it as a lucrative opportunity, as they’re known to take advantage of unstable market conditions to target unsuspecting consumers and businesses. The recent economic unrest is once again disrupting consumer behavior and strapping the budgets of online businesses. As we’ve learned in the past, this type of market confusion is welcomed by fraudsters, who find and exploit the loopholes caused by understaffed and unprepared risk teams, causing fraud rates to increase across industries. 

But companies can protect themselves without costly interventions and investments. In Sift’s recent webinar, SVP of Engineering and Cloud Operations Neeraj Gupta and Trust and Safety Architect Jeff Sakasegawa discussed how to build resilient fraud management strategies in the face of uncertainty. Watch the recorded webinar and explore our guide for more insights.

Fraudsters continue to prey on fintech

In 2021, payment fraud attack rates skyrocketed 70% across fintech, a trend that continues to plague the industry in 2022. This summer has also seen record-breaking fraud busts and vocal demand for regulations. But regulations, while welcome, are not enough to protect fintechs against increasingly sophisticated and constantly-evolving fraud. 

“To stop fraud from getting worse across the fintech market, leaders need to understand why it’s surging and why now is the time to take action,” writes Jane Lee, Trust and Safety Architect at Sift. 

See what else Lee had to say about how fintech fraud is evolving and how businesses can protect themselves in her article on Spiceworks News.

Losing cash to crypto cons

As crypto scams proliferate, more and more people are losing money to them. Recent Sift research revealed that more than one in five consumers who have encountered crypto scams have lost money. These scams, combined with this summer’s crypto downturn, have severely damaged consumer trust in the industry. 

Jane Lee, Trust and Safety Architect at Sift, spoke to VentureBeat about the inner workings of crypto scams and what enterprise businesses need to know to strengthen their fraud defenses and regain consumer trust. Read the full article here.

Keep up with the latest fraud trends, current data, and expert analysis on Sift’s Fraud Intelligence Center