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From cryptocurrency scams to fake account hype, digital fraud has become the hottest topic of 2022. As the share of mobile traffic in advertising has nearly doubled over the past seven years, so too has the number of smartphone services and solutions to meet growing demand, including online banking and gaming.
In this article, we will tell you about the new technologies that scammers are actively using in 2023, which both companies that invest in advertising and ordinary users need to know about.
Contents
1. 5 terms from the world of digital fraud
1.1. 1. Fake accounts
1.2. 2. Account takeover
1.3. 3. Deepfake Scams
1.4. 4. Chargeback fraud (friendly fraud)
1.5. 5. Digital Trust
2. What does all this mean for business?
In fact, this problem has only recently been raised at the global level, and the fight against them has only just begun. Fraudsters use fakes to generate fraudulent traffic, boost social media metrics, and manipulate public opinion through comments and posts. They are also used to abuse free trial versions of services, commit online payment fraud on websites, and steal personal data.
Fake accounts can also hinder companies’ investment plans, as we saw with Elon Musk’s Twitter deal and JPMorgan’s lawsuit against Frank. The use of fake accounts and the presence of bot accounts can lead to a trust deficit between companies and stakeholders. Investors may turn to a third party to verify the real number of users and traffic data before making a deal.
After authorization, attackers can, for example, buy goods in online stores using the account owner's bank card data, which was already saved in templates when filling out forms. They can even gain direct access to funds in e-wallets, balances on online platforms, etc. Fraudsters can also change the user's original authorization data to block access to the account, or resell it to a third party.
As digital data warehouses and neobanks (i.e. those whose infrastructure is entirely in the cloud, such as Tinkoff Bank) become more common, fraudsters have more incentive to take over accounts. This way, attackers can access everything: money, personal information, phone numbers, emails, addresses, etc.
Reference. Deepfake is a type of multimedia technology that generates a file based on an existing image or video on content created by artificial intelligence. That is, synthetic personalities are created that imitate the appearance, movements, face and voice of real people. Machine learning algorithms allow you to manipulate all of the listed biometric data and create a realistic picture with events that do not actually exist.
As this technology evolves, scammers may adopt it and use it to take over user accounts, use it for social engineering, etc.
For example, he may try to get a refund for the item by claiming that the order was not delivered. Or that the item that was delivered was ordered by someone who took over his account.
For businesses, fraudulent attacks and broken trust go far beyond financial losses. They can impact brand reputation and customer loyalty. And if a business doesn’t trust its customers, it may implement multi-layered filters and security checks, which will degrade the quality of service.
In this article, we will tell you about the new technologies that scammers are actively using in 2023, which both companies that invest in advertising and ordinary users need to know about.
Contents
1. 5 terms from the world of digital fraud
1.1. 1. Fake accounts
1.2. 2. Account takeover
1.3. 3. Deepfake Scams
1.4. 4. Chargeback fraud (friendly fraud)
1.5. 5. Digital Trust
2. What does all this mean for business?
5 Terms from the World of Digital Fraud
With the number of smartphone users expected to reach 6.84 billion this year, both individuals and businesses need to know what fraudulent technologies they may encounter online and how to avoid becoming a victim. Here are some key fraud terms to know in 2023.1. Fake accounts
There are billions of fake accounts on social media and other platforms. For example, in the fourth quarter of 2022, Facebook* (owned by Meta, which is banned in Russia) removed 1.3 billion fake accounts.In fact, this problem has only recently been raised at the global level, and the fight against them has only just begun. Fraudsters use fakes to generate fraudulent traffic, boost social media metrics, and manipulate public opinion through comments and posts. They are also used to abuse free trial versions of services, commit online payment fraud on websites, and steal personal data.
Fake accounts can also hinder companies’ investment plans, as we saw with Elon Musk’s Twitter deal and JPMorgan’s lawsuit against Frank. The use of fake accounts and the presence of bot accounts can lead to a trust deficit between companies and stakeholders. Investors may turn to a third party to verify the real number of users and traffic data before making a deal.
2. Account takeover
Account hijacking occurs when a fraudster gains unauthorized access to a user's account using stolen login credentials. These can be obtained through social engineering, malware, or databases posted on the Darknet.After authorization, attackers can, for example, buy goods in online stores using the account owner's bank card data, which was already saved in templates when filling out forms. They can even gain direct access to funds in e-wallets, balances on online platforms, etc. Fraudsters can also change the user's original authorization data to block access to the account, or resell it to a third party.
As digital data warehouses and neobanks (i.e. those whose infrastructure is entirely in the cloud, such as Tinkoff Bank) become more common, fraudsters have more incentive to take over accounts. This way, attackers can access everything: money, personal information, phone numbers, emails, addresses, etc.
3. Deepfake Scams
Deepfake technology has made headlines in recent years, and the trend is only set to grow. For example, here's a news story about how scammers used deepfake to create a video of what appeared to be Oleg Tinkov advertising a bonus program in an investment tool. The link under the video led to a fraudulent phishing resource called Tinkoff Bonus, where users were asked to provide their name, email, and phone number. Of course, the fake page disappeared a few days later.Reference. Deepfake is a type of multimedia technology that generates a file based on an existing image or video on content created by artificial intelligence. That is, synthetic personalities are created that imitate the appearance, movements, face and voice of real people. Machine learning algorithms allow you to manipulate all of the listed biometric data and create a realistic picture with events that do not actually exist.
As this technology evolves, scammers may adopt it and use it to take over user accounts, use it for social engineering, etc.
4. Chargeback fraud (friendly fraud)
The current economic situation may lead to a development where a person, in an effort to save money, is forced to turn to “friendly fraud,” that is, chargeback fraud. This occurs when a person claims something to be true, which in fact is not true.For example, he may try to get a refund for the item by claiming that the order was not delivered. Or that the item that was delivered was ordered by someone who took over his account.
5. Digital trust
As online fraud continues to wreak havoc on the internet, it is important that companies know which users to trust, and that they, in turn, can trust the platform they use.For businesses, fraudulent attacks and broken trust go far beyond financial losses. They can impact brand reputation and customer loyalty. And if a business doesn’t trust its customers, it may implement multi-layered filters and security checks, which will degrade the quality of service.
