The cost of fighting fraud continues to rise and is a major issue for travel merchants. Will it rise further in 2024?
Going by the trend (as shared by LexisNexis Risk Solutions) in the last couple of years, for every $1 of fraud, e-commerce merchants spent $3.36 in 2020 to $3.75 in 2022. Payment fraud, ATO, fake account creation, gift card fraud…e-commerce players have to guard themselves against a variety of attacks. They not only have to save customers’ data and money, but also avoid false signals, real attacks, their reputation etc.
A recent analysis by Recorded Future stated that the “make-or-break moment of any fraud scheme occurs with the final theft of a victim’s money or data”. It goes on to add that last year there were two areas of focus as far as fraudsters’ plans to effect cash-out and data theft attempts are concerned. The two trends are expected to continue this year too. These are:
- Growing sophistication of technical solutions combined with increasingly nuanced workflows
- Growing reliance on social engineering tactics, particularly for scam pages and phishing lures
As for how fraud is flourishing, other than the use of AI, it must be added that cybercrime community has developed on Telegram channels. Also, fraudsters continue to bypass rules-based fraud detection systems. Counting on ML algorithms to spot anomalies, data networks, relying on the expertise of specialists, and astute authentication are going to be the key going forward.
Travel companies need to accurately evaluate risk and then proactively identify and prevent payment fraud before it happens. Efforts related to investigation and prioritization of identified threats depends upon assessment.
How do you expect fraud mitigation to shape up in 2024?
By Ritesh Gupta, Ai Events
