Digital Fraud

2018 Was a Great Year for Fraud

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2018 was a record year for fraud in the U.S. and twenty-one other countries, according to Experian’s 2019 Global Identity and Fraud Report released earlier this year (February 2019). As the digital world advances, so does fraud.

Today, digitization of services from banking to online shopping has made us more vulnerable to fraud, and more reluctant to building trust online. Online fraud doesn’t just happen through your computer, laptop, or tablet, but often occurs through smartphone access, a trend that continues to grow. People prefer to access their financial information through their phones and are willing to provide their account information for purchases through mobile devices daily.

Online services that appear to be trustworthy, or mirror known businesses, are doing a better job of disguising themselves, opening a ‘path of trust’ for fraud to quickly occur to unsuspecting victims. When customers trust a business, they are more likely to do business with them; fraudsters know that disguising themselves is an easy way to target. According to the Experian report, the U.S. is experiencing the highest incidence of fraud in the world as online fraud increased by 80% over 2017. Online fraud remains a concern of businesses when their brand tarnishes, and customers are impacted by fraud.

It’s not only online fraud that is continuing to advance, but fraud through phone calls, and mail and package delivery services. Some surprising 2018 statistics compiled from U.S. consumers reporting fraud to The Federal Trade Commission’s Consumer Sentinel Database:

  • U.S. Citizens reported losing $1.48 Billion to fraud in 2018, an increase of 38% over 2017.
  • The top scams reported were imposter scams, debt collection, and identity theft
  • 43% of people in their 20’s reported a loss to fraud, whereas 15% of people in their 70’s reported fraud.
  • When people in their 70’s reported losing money, the amount tended to be higher, and their median loss was $751, compared to $400 for people in their 20’s.
  • Scammers like having money wired to them- $423 million was wired last year from unsuspecting U.S. citizens.
  • Credit card fraud on new accounts with someone else’s personal information was up 24% in 2018.

Some tips to help you stay safe online, on the phone, or through the mail:

  • Close your smartphone or computer browser after
    you access an app or website to view your financial information.
  • Don’t download smartphone apps from companies to
    order products; go directly to their website to order.
  • Type in the website address for the financial
    company each time you want to access your account (not through saved links) and
    refresh your browser each time you log out
  • Avoid clicking on links sent to you through
    email messages unless you can validate they are legitimate from a trusted
    source you do business.
  • Never give personal information over the phone
    or by text message; contact the intended institution to validate.
  • Don’t respond to letters asking for money for
    overdue bill payments unless you legitimately owe or can confirm the bill.
    Fraudsters are mimicking the IRS, and utility company logos, demanding money on
    fake accounts.
  • Use electronic bill notification and payments to
    avoid your check and account number being opened by a thief for their benefit.
  • Destroy old statements or use online statement
    services from your financial institution, broker, or credit card provider to
    eliminate a paper trail that could be compromised.

© 2024 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

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