A Proactive Guide to Fraud Prevention in 2024

What is Fraud?

Fraud occurs when someone uses deception or manipulation to unfairly gain an advantage over you, often to acquire money, goods, services, or property dishonestly.

Some common types of fraud include:

Authorised Push Payment (APP), or bank transfer fraud, occurs when a scammer manipulates an individual into sending money from their bank account to the fraudsters under the impression it is for a legitimate reason. A frequent tactic includes impersonating a bank and persuading the victim that they need to move funds to a 'secure account' for safety purposes.

Identity fraud involves the unauthorised use of your personal information for deceptive purposes. Perpetrators may exploit this information to perform actions like opening new bank accounts, securing loans, or engaging in transactions under your name, potentially leading to further fraudulent activities against others.

Phishing is a cyberattack in which individuals are tricked into disclosing personal information like passwords and credit card numbers via fraudulent emails, messages, or websites. These scams mimic trustworthy sources to lure victims into clicking harmful links or sharing sensitive data, aiming to steal identities or funds.

Vulnerability to Fraud

Anyone can experience fraud, regardless of age, education, or financial status.

Fraudsters often target individuals, businesses, and organisations using tactics tailored to exploit specific vulnerabilities or situations.

While certain groups may be more frequently targeted due to perceived vulnerabilities or valuable information they possess, such as the elderly, online shoppers, or small businesses, the reality is that no one is immune to the risk of fraud.

Awareness, education, and preventive measures are vital to reducing one's risk of becoming a victim.

BDO's Insights on Fraud

The BDO FraudTrack 2024 report reveals a significant rise in UK fraud, with a total of £2.3 billion reported, doubling from 2022 and marking a decade high.

BDO attributes the significant increase in fraud to the rising prevalence of online scams, including phishing attacks and security breaches, along with the surge in authorised push payment (APP) schemes, where individuals are tricked into sending money to fraudsters.

The FraudTrack 2024 report also highlights the emerging threat of fraudsters using Artificial Intelligence (AI) to target consumers more precisely and efficiently. This advancement underscores a significant shift towards more sophisticated and harder-to-detect methods of fraud, addressing a critical need for increased awareness and advanced protective measures among consumers.

Preventing Fraud 

To safeguard against fraud:

 1. Do not give out any personal information, such as your name, address, phone number, email or bank details, to a person or an organisation before verifying their credentials. This can be done by contacting the person/company using a known email address or phone number. This helps prevent identity theft and financial fraud.

2. Use multi-factor authentication wherever possible. This multi-step account login process requires users to enter more information than just a password. Examples of multi-factor authenticators include codes sent to the account holders' email, answering secret questions, scanning fingerprints or face ID scanning. MFA can protect you from being a victim of identity theft, which can lead to other types of fraud.

3. Ensure you get regular copies of your credit file and check it for any entries you don't recognise. ProtectMyID is an identity protection service that monitors your credit report and alerts you by email or SMS to potential fraudulent activity. If this activity turns out to be fraud, they can arrange for a dedicated caseworker to help you resolve everything.

4. Enhance your computer's defences by installing the most current antivirus and firewall protection. Optimise your web browser's security settings to the highest level to shield against malware threats and cybercrime efficiently. This proactive approach is your first defence in maintaining digital safety and privacy.

Silver Lining's Role In Fraud Prevention

Just as technology is evolving in the service of fraudsters, the right technology solutions and data can empower organisations to identify and address fraud risks quickly and at scale.

At Silver Lining, we believe that cyber security is not just an option but a necessity to protect your brand, Intellectual Property, and customers. We provide the correct expert knowledge to help prevent different types of fraud from occurring to you.

Visit our website's Cyber Security Management' section to learn more about the security solutions we offer at Silver Lining Convergence.

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