Fraudsters Found An Opportunity In The Popularity Of Digital Payments

 Jan, 06 - 2021   Digital PaymentsEcommerceTips

Fraud is usually associated to antitrust violations, bribery, credit card fraud, counterfeiting, extortion, forgery, illegal insider trading and misappropriation of trust funds. Charges of fraud can be handled by Donich Law for law abiding citizens without any criminal history. In some instances, these individuals are unaware that the alleged conduct is fraudulent.

Consumers have become accustomed to digital payments during the coronavirus pandemic; however, contactless payments have their share of risks. Fraudsters have found an opportunity to exploit the popularity of digital payments. According to reports from global businesses, there is an average of 4,000 cyberattacks per day since the pandemic. This represents a 400% increase from what was reported before the pandemic.

Organizations have started to adopt new security procedures to ensure the safety of online transactions but fraudsters are using sophisticated technology to trick people into sharing their sensitive information. There has been an increase in social engineering attacks including phishing across central Europe, Middle East and Africa.

Phishing has become more sophisticated and complex during the pandemic. It now includes a number of variants like spear phishing where a specific victim is targeted with personalized communication, voice phishing scams and spoofed websites. Impersonations are made to appear like family members, friends, executives or government officials.

Another type of fraud that is becoming common is friendly fraud where an individual’s card and passcodes are used without permission by friends, family or close associates. It is difficult to track without investigating the activity further. It has reduced legitimate sales by 1% and profits by 20%.

Because of the losses from fraudulent activities, businesses have invested in secure technologies like tokenisation, contactless and EMV smart card chips. Because of the sophistication of fraudsters, risk management is expected to become more complex in the future. Organizations will start to innovate and invest in technology even after the coronavirus pandemic.

When approached by clients due to allegations of fraud, Donich Law critically analyses the extensive disclosures that usually accompany the charges. A criminal defence lawyer will then analyse all evidences to prove that his client did not commit fraud and it is someone else who is guilty of the crime.

Share Button

Related articles