Technology Fraud and Online Exploitation

As the world becomes increasingly reliant on modern technology, so does it become more vulnerable to fraud and abuse. Fraud losses in the United States are at an all-time high, with 2021 figures showing phishing attacks up 436 percent and internet crime up 392 percent, according to data from the Federal Trade Commission (FTC).

The cost of cybercrime is even higher—it’s estimated that global damage wrought by hackers exceeds $500 billion a year, exceeding Sweden’s GDP. This includes the value of stolen cash and intellectual property, the cost to repair breaches, and lost productivity.

To combat these growing threats, companies must deploy security that stays resilient no matter what fraudsters try to do, while also avoiding friction that frustrates real customers. Whether fraudsters attack from the new account acquisition channel (phishing), from existing accounts (account takeovers) or in an application of services (reward program theft), top performers have effective detection capabilities that leverage broadly based and detailed information to identify and disrupt fraudulent activity.

Fraud in the Technology Sector

They use closure data to reduce learning time and flag attacks that are likely to be false positives, reducing friction while increasing customer experience. They constantly search for emerging threats to detect anomalies and improve fraud risk assessment models and controls. And they have a clear view of how their controls involve trade-offs with sales and marketing, customer experience, and operating costs.

Reducing Technology Fraud and Online Exploitation

Fraud prevention starts with a strong, agile platform that’s designed to adapt as attackers evolve their tactics and tools. This is critical for reducing false positives and friction that can degrade brand reputation and increase customer attrition. This is why leading organizations are embracing a continuous, iterative approach to security that’s powered by an AI/ML foundation.

Understanding fraud in the technology industry

A successful defense requires a comprehensive, integrated approach that combines the right mix of automated, adaptive, rules-based detection systems with human evaluation of complex transactions. It’s this combination that can help ensure that your business remains protected without the burden of fraud losses, operational costs, and lost revenue. Moreover, it’s this combination that can empower your organization to deliver on the promise of modern digital experiences.

Detecting and preventing fraud in the technology sector

Moreover, by communicating clearly with their customers and setting up self-service options, they can give them control of their own accounts and prevent fraud. This demonstrates to customers that their company cares about them and is willing to sacrifice some convenience in order to protect their information and assets.

As the technology industry continues to grow, it can be challenging for fraud management teams to keep pace with new types of threats. The growing sophistication of fraudsters and the increasing cost of fraudulent activity have forced many companies to reassess their anti-fraud strategy.

Reducing Technology Fraud and Online Exploitation

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