Financial Fraud Predictions and Mitigation for 2024


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  • Financial crime will likely increase and grow with digital businesses.
  • In 2024, there will be a growing focus on security technology developments to mitigate these possible financial frauds.

In this article, experts identify top fraud concerns for banks. Staying aware of possible financial fraud and adopting tools to mitigate loss will be key in 2024.

Outlook for Rise of Financial Crime in 2024

Fraudsters will seek new ways to exploit the financial information of customers and businesses.

Alex Beavan, ex-British Intelligence officer and Head of Ethics and Anti-Corruption at Convera, recently commented on payments and financial crime for 2024 predictions. “Entering 2024, financial crimes are poised to surge from the shadows, finding new breeding grounds in the emergent ESG landscape. The relentless march of regulation in the payments industry paves the way for an ominous uptick in associated financial malfeasance. Brace for impact as the battleground expands and the stakes reach unprecedented heights,” he says

While fraudsters will always seek to conduct new attacks, companies can be better prepared to mitigate their risks. One of the key ways is to remain aware of the most frequent financial fraud attacks.

So, what are the fraud signals coming for the year ahead? This article will help FinTech businesses stay vigilant and take necessary mitigation steps to prepare for 2024.

Automated Push Payment (APP) Fraud 

Automated push payment (APP) fraud is rapidly becoming one of the main methods to scam financial businesses and customers.

ACI Worldwide and GlobalData report states that

ACI Worldwide and GlobalData

The rise will be due to social engineering attacks and the rise of real-time payments. These will make it easier for threat actors to target customers and persuade them to make huge transactions.

They can easily do it by pretending to be from a trusted banking or financial company. Such kinds of fraud also mislead banks by making them believe that the account holder is real and not fake.

In addition, these attacks make it through both password and biometric checks.

So, to address the problem, banks and financial companies should deploy advanced technologies, including behavioral analysis tools.

Other ways include:

  • Improving existing fraud management platform using a data extensibility model and RESTful APIs to authenticate data.
  • Deploy visible and invisible security to detect suspicious activity, such as huge payments. For visible security, banks can build authentication steps to verify large payments. At the same time, invisible security like biometrics should be applied in apps to determine the authorized identity of a customer.
  • Banks and financial institutions can use secured online payment methods, like EMV 3-D secure. It secures online payment options for customers.

Synthetic identity fraud has become the fastest-growing form of fraud globally. It is mostly used in the creation of mule accounts.

This financial fraud occurs when there are loopholes in the onboarding processes in banks and financial institutions. It also happens when data is siloed and not used properly in executing financial activities.

The prime targets are credit card risks, online payment, and internet banking risks. Reuters’ blog, Trends in Synthetic Identity Fraud, mentions that

Trends in Synthetic Identity Fraud

Increasingly, legitimate Social Security numbers (SSNs) are being used to create a fake identity of deceased or unused accounts.

Threat actors can create fictitious contact information and use fake identities to apply for financial instruments like credit cards. Such activities also use previously hacked personal information.

Minimizing Risk

Banks and financial companies can take necessary steps to prevent this type of fraud by:

  • Create hard-to-guess passwords and avoid reusing the same password to reduce risks.
  • Deploying MFA and data encryption codes across data-sharing networks to protect digital transactions and payment systems.
  • Using credit monitoring tools to flag inaccuracies across digital payment platforms for automated monitoring systems and detect identity frauds.

Fraud-as-a-Service to Gain Traction

Fraud-as-a-service is becoming increasingly rampant due to the massive use of Generative AI. Threat actors use it to gather customers’ financial information faster and acquire operational processes to target attacks specific to banks.

Alex Beavan opines that the huge adoption of AI tools could be a contributing factor. Fraud will skyrocket,” he says,” AI emerges as an imminent menace, rendering red flags in scams more elusive. Brace for an era where the battle against deceit reaches unprecedented challenges.

 Minimizing Risk

To minimize the impact of Fraud-as-a-Service, integrating Regulatory tech into compliance and regulation tools will gain prominence in 2024.

The growing volume of regulatory requirements in FinTech, where personal data and privacy measures will be high, will drive the adoption of tools like Blockchain and cloud computing.

Other ways to mitigate the risk are:

  • Integrate customer authentication software for regular checkout processes from accounts
  • Employ CVV Verification
  • Employ Address Verification Service (AVS)

Digital Transaction Frauds

Statista’s Digital Payments: Worldwide report states that

Worldwide report

However, banks and FinTech companies will see huge transaction volumes targeted by numerous fraud attempts.

Technology has increased significantly with the success of digital payments globally. But, behind the success, 71% of organizations have been victims of payment fraud attacks, according to J.P. Morgan’s study.

Stolen credentials, identity thefts, spoofing, and social engineering are increasing frauds in this space. However, banks, financial services, and FinTech companies should deploy speedy security solutions to match and protect the fast processing system of digital payments.

Similarly, the rise of real-time payments (RTP) is also attracting various kinds of fraud. Business email compromise is one of them. ACH debit and credit frauds are also rising and will increase in 2024.

Alex Beavan says, In the era of lightning-fast real-time payments, security is non-negotiable. As transactions surge in the new year, so do the imperatives of robust screening. Customer demand for instant access and control will intensify. Companies must tread the razor’s edge, aligning business strategy with real-time dynamics while staunchly mitigating the escalating risks. Speed demands security, and only those who master the balance will thrive moving forward.

Also Read: How Machine Learning Helps Detecting FinTech Frauds

Minimizing Risk

So, what banks and financial companies can do to mitigate these frauds are:

  • Conduct accurate identity checks and KYC, which includes verification, onboarding, and Customer due diligence (CDD) processes using AI and automation tools.

In a case point, IDVerse provides AI services for financial verifications. Its services aim to speed up identity verification (IDV) with accuracy.

  • Include biometric solutions for optical character recognition (OCR), fraud assessment of documents, and face matching.


Finally, Alex Beavan says, by looking at the financial fraud predictions for 2024, “Payment companies, in an era of evolving threats, must shed the burden of wearing too many hats. Mitigating the dynamic evolution of fraud and compliance demands a specialized skill set, particularly in investigation and the relentless pursuit of illicit funds. Companies must adopt a dedicated and unwavering approach to confront these issues head-on. Specialization is the armor against the ever-shifting landscape of financial risks.

Anushree Bhattacharya
Anushree Bhattacharya
Anushree Bhattacharya is a Senior Editor with TalkCMO, where she covers stories on B2B business strategies and digital marketing. She is a quality-oriented professional writer with eight years of experience. She has been curating content for the B2B marketing industry, and her writing style is inclined toward how businesses want to perceive information about emerging digital transformations in the marketing landscape with latest developments. Anushree blends the best information on trending digital transformations, technology-driven stories, and SEO-optimized content. Anushree is proficient in curating information-driven stories about marketing for TalkCMO publications.


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