Cybercrime Threats – Visa Report on Consumer Fraud Increase

The Growth of Complexity and Quantity of Consumer Frauds, Noticed by Visa

According to research conducted by Visa, there is a noticeable increase in both the complexity and quantity of fraud directly targeting consumers. Although the number of individual fraud reports decreased from June to December, the total losses related to fraud have increased, indicating increasingly effective and costly methods employed by cybercriminals.

Underreporting of Frauds and Increasing Risk for Consumers

The surprising fact that over one third of adults do not report fraud suggests that actual losses may be significantly higher than those officially reported. Fraud schemes are becoming more convincing through the use of artificial intelligence and other new technologies, increasing the risk for consumers.

Common Consumer Fraud Schemes

Among the major consumer frauds identified by Visa are schemes related to pork butchery, inheritance scams, humanitarian aid scams, and triangulation frauds.

Pork Butchery Scam

One popular scam is the pork butchery scam, where victims are lured into investing in fake cryptocurrency trading platforms through social media and dating sites.

Inheritance Scams

Another scheme of fraud is inheritance scams, which involve informing victims of an inheritance from a distant relative, often through a purportedly legitimate law firm.

Triangulation Frauds

Meanwhile, triangulation frauds are illegal online stores offering products at low prices, aimed at gathering payment data from unsuspecting consumers.

The Rising Threat of Cybercrime for Organizations and Networks

Not only consumers are vulnerable to cybercriminal activities, but also organizations and networks. There is an increasing threat from cybercriminals who utilize new technologies to attack systems.

Ransomware Surge

Ransomware cases have increased by up to 300% in 2023 compared to the previous year, indicating the growing scale of this threat to all internet users.

Visa’s Predictions Regarding Future Cybercriminal Attacks

Visa predicts that cybercriminals will continue to target critical infrastructure, including financial organizations. Therefore, it is important for both consumers and companies to be aware of the growing risks associated with frauds and cyber attacks, and to take appropriate precautions to protect their data and finances.