Introduction
Consumer fraud is always on the rise especially as messaging apps emerge as an important channel for fraudsters. This is because messaging services are used same as phone calls for executing fraud attempts.
The most common way for fraudsters to contact consumers other than direct phone calls is messaging apps, such as email, SMS and social media (because they are easy platforms for fraudsters to exploit, further highlighting the scale of these activities).
In the Middle East, the rise in fraud is clear due to the significant financial impact on businesses in the region. This risk does not includes only the direct financial losses, but also additional costs associated with fraud, such as in-house labor, outsourced costs, and expenses related to replacing or redistributing lost or stolen goods.
Understanding how fraudsters work is critical to combating these threats. Fraudsters often create and distribute fake job opportunities on platforms like WhatsApp by leveraging extensive infrastructure. Criminal operations with wide infrastructure facilitate fraud, including the creation of fraud operations centers (such as call centers). These operations are technologically sophisticated, using techniques such as number spoofing and the manipulation of devices and individuals. This industrial approach allows fraudsters to target victims around the world 24/7.
There are two main types of fraud prevalent: mass market fraud and targeted social engineering.
Mass market fraud involves distributing millions of identical messages, emails, or robocalls to consumers in the hope that a portion of the recipients will engage with the scam. These scams often take the form of get-rich-quick schemes, or prize notifications and much more other forms.
The second type is more personalized, involving detailed researches about the victim. Information about the targeted consumer is gathered and researched before the scammer contacts the victim. Here, scammers may pretend to be trusted entities such as banks or other financial institutions.
While individuals must remain careful, businesses also have a responsibility to protect against these types of fraud. This is where businesses should start to benefit from the digital technologies to help detect such problems.
Artificial intelligence, and other technologies, can play an important role in identifying and preventing fraud.
Conclusion
Providing solutions for fraud will help companies and businesses to protect their customers in the digital world, such as identifying and preventing fraud in real time, and that is by implementing behavioral intelligence, advanced machine learning, and AI analytics, that can be designed to ensure the access of legitimate customers to the accounts and services.
Fraud is expected to remain a significant problem until enough organizations implement the right technologies to prevent these attacks. To effectively fight fraud, organizations must prioritize consumer protection, and continually adapt to the evolving tactics of fraudsters.
Technology and its development are a double-edged sword, since it helps both criminals and fraud fighters. While artificial intelligence and advanced analytics can help identify and prevent fraud, fraudsters are also using these technologies to create more convincing tricks. The key to winning this battle is in the successful deployment of trustworthy technologies that can resist manipulation and protect consumers without introducing unnecessary friction.
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