Global Increase in Fraud Awareness and Victimization
As the world commemorates International Fraud Awareness Week (Nov. 12-18, 2023), a recent consumer fraud study by AI and analytics leader SAS highlights a significant increase in fraud consciousness globally. The study, involving 13,500 adults, reveals startling figures:
- Seven in 10 people have been victims of fraud at least once, with 40% experiencing it twice or more.
- 86% of consumers are now more cautious about fraud than in the past.
- About three-quarters express concern about future fraud risks.
Stu Bradley, Senior Vice President of Risk, Fraud, and Compliance at SAS, emphasizes, “Even as consumers signal increased fraud vigilance, generative AI and deepfake technology are helping fraudsters hone their lucrative craft. Phishing messages are becoming more polished. Replica websites look stunningly like the ones they mean to imitate. It takes just $5 and a few seconds of audio to clone someone’s voice with readily available online tools.”
Collaborative Efforts to Combat Fraud
SAS is teaming up with the Association of Certified Fraud Examiners (ACFE) and over 1,000 organizations to drive anti-fraud awareness and education. Key events during Fraud Week include:
- SAS webinar on governments and fraudsters in the AI age (Nov. 14).
- Live Twitter/X chat discussing Fraud & AML Trends for 2024 (Nov. 16).
- ACFE webinar on combating financial crime in the Generative AI Age (Nov. 17).
These initiatives aim to enhance fraud awareness and employ cutting-edge strategies to combat it.
Pioneering Anti-Fraud Technologies
SAS’s research underscores the critical role of anti-fraud technologies:
- Poste Italiane uses SAS’s AI to detect fraud, achieving significant reductions in false positives and fraud ratios.
- HDI Seguros collaborates with SAS to enhance claims fraud detection, resulting in a 43% increase in identified frauds year over year.
- Treezor deploys SAS® Anti-Money Laundering to bolster its AML and fraud surveillance capabilities.
- The Department of Economy of the State of Goiás, Brazil, utilizes SAS technology to fight tax evasion in freight transport, significantly increasing operational efficiency and transparency.
Consumer Expectations and Corporate Responsibility
SAS’s research also highlights the growing consumer demand for robust fraud protection. “Consider that nine in 10 consumers think organizations should be doing more to safeguard them from fraud, and that two-thirds said they would change service providers due to a fraud experience or for better fraud protection,” says Bradley.
Also read: Ant International’s Voyage to Digital Commerce: Unveiling a Future-Ready Strategy for Global Merchants
Looking Forward: The Evolving Landscape of Fraud Prevention
As the world becomes more digitally interconnected, the fight against fraud, especially in the shadow of emerging technologies like generative AI, is becoming increasingly complex and crucial. Organizations and individuals alike must stay vigilant and adapt to the ever-changing landscape of digital fraud.
John Gill, ACFE President, sums it up: “Anti-fraud professionals can’t afford to ignore the scams and frauds coming to the fore in these challenging economic times – nor can the organizations that employ them afford to disregard the public’s changing expectations around fraud protection. Keeping up with anti-fraud innovation will be critical across industries as fraudsters take advantage of generative AI and other emerging technologies.”