A new report from Federal Trade Commission (FTC) shows the scale of the cross-border fraud problem.
Since the FTC began monitoring complaints on this issue in 1996, it has received more than 2.6 million consumer reports of cross-border fraud, the agency said in a statement. report delivered to Congress on Friday (October 20).
And in the last eight years alone, consumers have reported 1.4 million incidents of cross-border fraud and more than $5.2 billion in losses. During the same period – from January 1, 2015 to June 30 of this year – U.S. consumers alone reported nearly 500,000 incidents of cross-border fraud and nearly $2.5 billion in losses.
“These already staggering figures almost certainly underestimate the true scale of cross-border fraud consumers face,” the report said. “Only a small percentage of consumers who encounter fraud file complaints, and the cross-border aspects of many frauds are not always obvious to consumers themselves. »
The FTC is calling on Congress to renew the 2006 SAFE WEB legislation, which it says helps protect consumers from fraud.
Last month, the commission announced that it was working with consumer protection authorities in Chile, Colombia, Mexico and Peru to fight against cross-border fraud.
Marie Coppoladirector of the FTC’s Bureau of International Affairs, said in a statement Press release that partners have a shared commitment to protecting consumers against cross-border fraud, deception and illegal practices.
In a separate report The FTC on Friday discussed its work to combat ransomware and other cyberattacks, saying one of the primary ways to do so is “by implementing a robust data security enforcement program aimed at ensuring that companies take appropriate measures to protect the personal data they hold.” such attacks.
PYMNTS examined recent developments in fraud in an interview with Michael JabbaraVice President and Global Head of Anti-Fraud Services at Visa. Until recently, he said, cybercrime was carried out by well-organized and well-financed gangs.
“You had to have some technical expertise to create malicious code,” he told PYMNTS. “You had to create your own toolbox. »
Now, however, “there is there was a democratization” of fraud, Jabbara said, because anyone can access the Dark Web and find the tools and tutorials to carry out attacks.
To help fend off potential fraudsters, he said, companies need to adopt what he calls “front-line education of employees who are most often the entry point” for malicious schemes.