Visa’s ‘State of Fraud Report’ Reveals Criminals Combining Old and New Tactics

Visa Unveils “State of Fraud: Fall 2024 Semi-Annual Threat Report” Ahead of Money20/20 Conference

As the Money20/20 conference approaches, Visa, a leader in digital payments, has published its “State of Fraud: Fall 2024 Semi-Annual Threat Report.” The report highlights emerging threats and scams targeting both banks and consumers, with a notable rise in small-scale physical crimes.

Paul Fabara, Visa’s Chief Risk and Customer Service Officer, stated, “Visa has invested $11 billion in technology and infrastructure over the past five years, making our network more secure than ever. However, as payment security improves, scammers revert to targeting the most vulnerable link in the ecosystem—the consumer. Visa is committed to mitigating risks throughout the transaction process, but consumers must remain vigilant.”

Key Insights from the Report:

  1. Resurgence of Physical Theft: The report indicates a return to basic criminal tactics, with a marked increase in physical theft over the past six months. Criminals exploit the delay between theft and victim awareness, often profiting by purchasing or reselling gift cards, or using stolen card numbers for online transactions. Additionally, Visa has identified a threat termed “digital pickpocketing,” where cybercriminals employ mobile point-of-sale devices to steal from unsuspecting consumers in crowded locations.
  2. Government Impersonation Scams: Scammers are increasingly posing as representatives from agencies like the U.S. Postal Service, FBI, and IRS. In the first quarter of 2024, victims lost an average of $14,000 to such fraud, accumulating over $20 million in total losses. Furthermore, the incidence of cash payment fraud involving government impersonation rose by 90% from 2022 to 2023. Visa anticipates an uptick in large cash withdrawals from ATMs as these scams evolve towards cash transactions.
  3. Rise of Authentication Bypass Scams: Scammers are intensifying their efforts to circumvent two-factor authentication through phishing tactics. By deploying convincing text messages, emails, or phone calls, they gain access to account information and funds. The effectiveness of these scams is bolstered by advancements in generative artificial intelligence.
  4. Gas Station Fraud: Fraudsters exploit small authorizations to make large fuel purchases with accounts lacking sufficient funds. Over the past six months, this tactic has shifted focus from card issuers in the U.S., Latin America, and the Caribbean to those in Central Europe, the Middle East, and Africa, illustrating the global nature of these scams.
  5. Enumeration Attacks: Merchants continue to be targeted by cybercriminals using enumeration attacks, where consumer account information is compromised through extensive testing of payment data. Successful enumeration attacks often lead to significant fraud within the following year, particularly affecting industries such as restaurants, government services, and charities.
  6. Token Supply Scams: While tokens are generally a secure payment method, scammers have begun to illegally acquire and cash them out without detection from financial institutions. Visa has observed increased delays in cashing out compromised accounts as criminals attempt to evade capture.
  7. Ransomware Threats: Although overall attempted ransomware attacks dropped by 12.3% during this reporting period, attacks against third-party providers surged by 24%, highlighting a significant increase in vulnerability. One attack impacted approximately 2,620 organizations and 77.2 million individuals, positioning third-party vendors as prime targets for cybercriminals.

This report marks the first from Visa’s newly expanded Payment Fraud Disruption team, now part of the Payments Ecosystem Risk and Control (PERC) team. This team is dedicated to safeguarding the global payments ecosystem by enhancing risk controls, leveraging intelligence-driven solutions, and maintaining Visa’s standards.

The complete report is accessible here. For further information on how Visa combats fraud and secures the payments ecosystem, visit visa.com/security.

About Visa

Visa (NYSE: V) is a global leader in digital payments, facilitating transactions between consumers, merchants, financial institutions, and government entities in over 200 countries and territories. Our mission is to connect the world through innovative, convenient, reliable, and secure payment networks that empower individuals, businesses, and economies to thrive. We believe that economic connectivity is vital to enhancing lives globally. For more information, please visit Visa.com.

Disclaimer: The original announcement serves as the officially authorized version. This translation is for convenience only; the original text remains the sole legally binding version.

Source link

Share your love

Newsletter Updates

Enter your email address below and subscribe to our newsletter