Top 10 Payment Fraud Trends to Watch Out for in 2024

Are you aware of the newest payment fraud trends that are circulating in 2024? As technology progresses, new methods of fraud are being developed and it can be hard to keep up. But fear not, as we’ve got you covered. 🕵️‍♀️

In this blog, we’ll highlight the top 10 payment fraud trends to look out for in 2024, and we’ll provide some context behind each trend to help you understand the details. So buckle up, as we take you on a journey through the world of payment fraud.

Trend #1: Social Engineering Attacks

Social engineering attacks are fraudulent acts in which the attacker obtains confidential information from their victims by gaining their trust and manipulating them into divulging sensitive information. Attackers use social engineering techniques to trick their victims into giving up passwords, credit card information, or other sensitive data. 😔

Some tips to avoid falling victim to social engineering attacks are to: never click on suspicious links or downloads, be wary of unsolicited phone calls or emails, and never give out personal information to unknown sources.

Trend #2: Synthetic Identity Fraud

Synthetic identity fraud involves criminals creating fictional identities and using them for illicit activity. They will create a false identity by combining real information with fake information, and use it to open bank accounts, credit cards or other financial products. Synthetic identity fraud can be harder to detect as the identities are not connected to any real person. 💳

To avoid being a victim of synthetic identity fraud, it is important that you frequently monitor your credit report to identify any unfamiliar accounts or activities, and report any suspicious activity to your bank or financial institution.

Trend #3: Phishing Scams

Phishing scams are fraudulent attacks that rely on tricking people into giving away their personal information. In a phishing scam, attackers use fake emails or messages to trick their targets into thinking they are a legitimate business or institution, and coerce them into providing sensitive information such as usernames, passwords, or credit card details. 😞

To avoid falling victim to phishing scams, it’s important to always verify the legitimacy of an email or message, and avoid clicking on any suspicious links or downloads.

Trend #4: Contactless Payment Fraud

Contactless payment fraud occurs when someone uses a contactless device without the cardholder’s permission. This can happen when someone borrows or steals another person’s card, or when the card’s NFC wave is skimmed by a criminal using a specialized device. 😠

To avoid being a victim of contactless payment fraud, keep your card and devices safe, and use them with caution. It’s also important to monitor your account activity regularly and report any unauthorized transactions as quickly as possible.

Trend #5: “Smishing” Attacks

“Smishing” attacks are a type of phishing scam that involves the attacker using text messages instead of emails to trick their targets into providing personal information. These fraudulent texts often contain a link or phone number to call, which can lead to identity theft or financial loss. 😢

To avoid falling victim to “smishing” attacks, avoid clicking on suspicious links or texts, and always verify the legitimacy of a text before providing any personal information.

Trend #6: SIM-Swapping

SIM swapping is a scam where a criminal takes control of someone’s phone number to gain access to their accounts and personal information. They do this by calling the person’s phone company and convincing them to transfer the phone number to another SIM card under their control. 😳

To prevent SIM-swapping, enable two-factor authentication for all of your accounts, and always be cautious of unexpected phone calls or texts requesting personal information.

Trend #7: Account Takeover Fraud

Account takeover fraud involves a hacker gaining access to a person’s account by obtaining their login credentials. Once they have access, the hacker can steal money, make unapproved purchases, or create other fraudulent activities. 😣

To avoid being a victim of account takeover fraud, never use the same password for multiple accounts, use two-factor authentication, and monitor your accounts for any unusual activity.

Trend #8: BIN Attacks

A BIN attack involves a fraudster digitally testing various combinations of information to obtain a valid payment card number. They then can use this valid card number to make fraudulent purchases. 🤑

To avoid being a victim of BIN attacks, stay aware of any suspicious activities with your card issuer or bank. You can also check your statements regularly to identify any unusual activity on your account.

Trend #9: Loyalty Points Fraud

Loyalty points fraud involves attackers using fake or stolen loyalty points to make unauthorized transactions. In this type of fraud, the criminal takes advantage of a bank or retailer’s rewards program. They can obtain points by exploiting weak cybersecurity practices or by using fake or stolen identities. 🤨

To avoid being a victim of loyalty points fraud, only use reputable apps and websites when redeeming your rewards, enable two-factor authentication, and avoid sharing personal information with unknown sources.

Trend #10: Ransomware Attacks

Ransomware attacks involve a hacker infecting and encrypting a person’s digital devices and data, and demanding payment to release the information. 😡

To prevent ransomware attacks, make sure to always back up your data, use antivirus software, and always keep your software up to date.

And there you have it, the top 10 payment fraud trends to watch out for in 2024. Knowledge is power, and knowing what to look out for can help you avoid becoming a victim. Stay vigilant, and stay safe online! 💻🛡️

📷 Cover photo by Markus Spiske on Unsplash