Entitled ‘Fraud Trends 2023: What They Really Mean for Fraudsters and Your Business’, the publication showcases that fraud is not only on the rise in the online space, but that online fraudsters have begun targeting higher amounts of money and they are doing so in an increasingly sophisticated manner.
From October to December 2022, SEON noticed a 12.9% increase in suspicious user activity, thus indicating that fraud is on the rise.
From September to December 2022, the company found that the average amount of money that fraudsters tried to steal per transaction had increased by 300%.
The average fraudster is now leveraging increasingly sophisticated types of technology to hide online.
Artificial intelligence is more commonly leveraged by businesses in the fight against online fraud, with SEON’s two machine learning modules having seen a 30% and 46% rise in usage rates from September onward.
As detailed in the report, this increase is being underpinned by the development of powerful AI modules and online fraud tools, which are not only decreasing the barriers to entry around this issue but also enabling fraudsters to conduct increasingly sophisticated fraud attempts in a more cost-effective manner. What is more, the continuous downturn within the broader economy is also believed to push more people towards committing online fraud, predominantly at a time when it can be least afforded.
Based on the announcement information, modern fraud prevention solutions of the likes of SEON can help mitigate this threat before it evolves further, with the company’s platform leveraging AI technologies to do so, including whitebox and blackbox machine learning.
Fresh on the back of its acquisition of Complytron, SEON’s report offers businesses insights that are believed could be ‘crucial’ to remaining safe on the internet throughout 2023. In addition to documenting the key fraud trends noticed on its platform, the publication puts an emphasis on the need for further collaboration between fraud prevention experts.
When commenting on the report, Tamas Kadar, CEO and co-founder of SEON stated that fraud is increasing throughout the world, and those that are committing to such acts are increasingly ‘brazen and refined’ in their approach, with the belief being that nascent technologies of the likes of AI could be leveraged by fraudsters in a more dangerous manner in the future, should measures not be taken.
The company believes that the usage of anti-fraud machine learning solutions is imperative in the fight against modern-day fraud, with early research indicating that fraud managers have already begun leveraging these systems to address the problems they are faced with. Furthermore, SEON believes that with this approach, companies are enabled to reduce the fraud risk to their business and customers alike.
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