At the same time many physical stores are reopening amid loosening Covid-19 restrictions, fraudsters are decreasing their schemes against online businesses. Covid-19-focused scams targeting consumers, however, are on the rise.
TransUnion’s latest quarterly analysis of global online fraud trends finds the share of suspected fraudulent digital transactions against businesses worldwide decreased nine percent from the beginning of the pandemic (March 11-May 18) to when businesses began reopening (May 19-July 25).
In contrast, TransUnion’s Consumer Financial Hardship surveys found consumers targeted by digital Covid-19 schemes increased nine percent from the early days of the pandemic (week of April 13) to more recently (week of July 27).
“With the rush for businesses to go digital as many were forced to go completely online almost overnight, fraudsters tried to take advantage,” said Shai Cohen, senior vice president of Global Fraud Solutions at TransUnion, in a summary of the research. “They were most likely unsuccessful in their attempts and took their scams elsewhere as those businesses ramped up their digital fraud prevention solutions while providing a friction-right consumer experience. Conversely with consumers, fraudsters are increasingly using Covid-19 to prey on those persons who are facing mounting financial pressures.”
TransUnion said it examined billions of transactions and more than 40,000 websites and apps contained in its fraud prevention solution to reach their conclusions.