The FTC (Federal Trade Commission) compiled extensive data regarding business and personal scams during 2023. Unfortunately, many of those same schemes are being perpetrated in 2024. According to the FTC data book, approximately $10 billion was stolen from people in 2023. This represents an 11% uptick from 2022 figures, and the current year is expected to be more damning. Cybercriminals, in groups or acting alone, continue perpetrating activity until they are stopped. These illegal actions – scams, take many different forms, notably:
Investment scams
A top four fraud category, investment scams are unfortunately all too common across the United States and worldwide. Losses in this category amounted to $7,700 per person, on average, up substantially from the 2022 figures, when it was $5,000
Payment Methods Scams
According to the data collected by the FTC, scammers overwhelmingly prefer registered users or visitors to use bank transfers and cryptocurrency. The data suggest that $1.86 billion in losses occurred with bank transfers and $1.41 billion in losses with cryptocurrencies.
Social media scams
Social media is a hotbed of illegal activity, misinformation, and outright fraud. That’s precisely why scams perpetrated across social media networks like Facebook, X.com, Instagram, LinkedIn, and the like rank right up there with fraud at $1.4 billion – up $250 million from 2022. Interestingly, the biggest personal losses occurred with telephone scams, totaling an average of $1480 per person.
Imposter scams
Imposter scams are the worst of all. This fraud category will topped the charts at the Federal Trade Commission for 2023, and trends will continue into 2024. The total reported losses with impostor scams was $2.7 billion. People complained about imposters from bank fraud departments, distressed relatives or friends, technical support experts, government agents, etc. These imposters are confidence tricksters who get people to commit financial resources to fraudulent websites or businesses.
AI Scams, Notably Stolen IDs and Deep Fakes
There is no mistaking the powerful impact of generative AI tools on the world. However, fraud has become much more accessible because of it. Now, consumers and businesses are struggling to deal with the effects – the fallout of AI scams, stolen IDs, and deep fakes is substantial. It affects individuals just as much as it affects businesses.
Many people are duped into believing lies, owing to the seeming authenticity of artificial intelligence technology. Ransom demands to the tune of thousands, perhaps hundreds of thousands of dollars, are routine practice with sophisticated AI scams using stolen identities and deep fakes. Companies and individuals are held hostage to these criminal conspiracies.
Friendly Fraud
Unbeknownst to many, friendly fraud occurs when an individual buys a service or a product online. The said person then claims that the transaction is invalid. They request the chargeback from the credit card processor, which in turn reimburses the consumer for the full value of the transaction. In these fraudulent transactions, the person asserts – seemingly honestly – that fraud was committed.
Sometimes this is true, and sometimes it isn’t. Scammers routinely purchase products online, claim they were never shipped (never arrived), and request their money back. Without photographic evidence or proof of delivery, such scams routinely get approved by credit card processing companies.
Interception fraud
As its namesake suggests, interception fraud occurs when criminals use your online account, such as Amazon, eBay, Barnes & Noble, Walmart, and so forth, using identical shipping and billing addresses of a stolen credit card. Once the order is placed, these packages are intercepted and the contents seized. The victim pays for the purchases, but the interceptor – the criminal – diverts the order to the address on the stolen credit card. Sometimes, the fraudster waits for the package at the legitimate homeowner’s address, signs for it, and absconds.
Concluding Remarks:
To combat the surge in business scams in 2024, incorporating next-generation SAST (Static Application Security Testing) is crucial. These tools offer quick, accurate scans, minimizing false positives, thus enhancing development without compromising security. They adapt to detect significant risks swiftly, ensuring the protection of vital applications.
Leveraging AI, these solutions fine-tune security measures, offering precise remediation strategies. Integration with code repositories like GitHub allows for immediate vulnerability checks. Supporting various languages and frameworks, they ensure comprehensive coverage. By prioritizing efficiency and precision, businesses can safeguard against scams, fostering a secure, trustworthy digital environment.
Many countries, including the United States, United Kingdom, Canada, and others, have adopted a harsh position against fraudulent activity, online and in-person. The US is leading the way with various stringent AML fraud prevention techniques, courtesy of the Federal Trade Commission.
Across the UK, know your customer (KYC) policies are directed towards online platforms to check transaction history and records. In Canada, the Canadian criminal code (section 342) expressly states that online theft is punishable by fines and a jail sentence. But of course, the best offense is a tight defense, and that’s where each of these business scams can be stopped dead in their tracks.
