The Real Cost of Tech Scams: A Case Study with Financial Experts

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Unveiling the real cost of tech scams through a compelling case study with financial experts. Protect your money and data now!

tech scam

We’re becoming ever more aware of tech scams these days as we live our lives online and trust companies with our financial and personal details. Businesses must have robust measures in place to ensure everyone’s data is always safe.

However, many fraudsters operating these types of criminal activities are getting cleverer by the day, and it’s easy to get caught and lose money, time, and custom. 

As a business owner, you need to know what you’re looking for, and how to spot these insidious individuals and what they get up to, as it can often be difficult to understand how to stop it and what to do in terms of keeping your business (and your valued customers) safe.

From scams in which ‘tech support’ workers claim to be calling from well-known companies and end up defrauding unaware customers to criminals who contact people pretending to be from banks to steal money – both the companies being impersonated and the unsuspecting customers stand to lose – financially and reputationally. 

What can be done? We’ve hopefully got some answers as we’ve asked some experts from within the finance and tech industries to give their opinions on the impact of technology on scams and what can be done to mitigate it.

How could a business tech fraud allegation affect your company?

“Allegations of fraud within your company are likely to have a huge, untold impact on every aspect of the business. From finances to brand image and employee morale, there’s a myriad of ways things can spiral out of control.

As such, avoiding fraudulent actions at all costs is paramount. Having the correct processes, training, and systems in place to avoid external fraud is also paramount. What’s more, keeping an eye on accounts and employee activity to avoid internal fraud is a good place to start” Milly Arthur writing for Insights for Professionals

Is the finance industry in the eye of the tech fraud storm?

“The finance industry finds itself at the core of the payment fraud epidemic. According to a 2023 AFP Payments Fraud and Control Report, nearly every business grapples with this crisis. 

A Forbes Advisor poll revealed that 33% of small business owners consider credit card fraud a major concern, small businesses haven’t escaped the situation.

This crisis isn’t static; it’s accelerating. Digital payment fraud losses are anticipated to surpass a jaw-dropping $343 billion globally between 2023 and 2027. These ominous trends aren’t merely numbers; they’re manifestations of deep-rooted vulnerabilities that threaten to undermine the bedrock of financial trust.

For instance, card-not-present (CNP) fraud, accounting for 73% of card payment fraud loss in 2023, exposes the profound risks in our increasingly digitized commerce landscape. The financial industry stands on a precipice. How it tackles the relentless surge of payment fraud could redefine its future and shape the trust of millions who rely on it. Old-school solutions aren’t enough.” Frederick Bussler, contributing writer Fingerprint.com

Is it time for social media companies to step in and help put a stop to tech fraud? 

“Putting right the victims of fraud can only be one part of the solution – the focus now needs to shift to preventing fraud from happening in the first place. Industry data shows that 78% of this fraud starts online.  We need social media and tech companies to show the same level of responsibility, investment, and protection as the banks are providing– so together we can win the fight against fraudsters. Based on current industry fraud levels, scams originating on Meta platforms alone could account for up to £250m of push payment losses to UK households in 2023. 

Social media and technology companies are a mainstay of our lives. Not only are they a key part of our economy, they also bring enormous benefits in bringing people together and allowing them to do more. But alongside this popularity must come greater responsibility to the tens of millions of people who use them” Paul Davis, Director of Fraud at TSB, writing for PoliticsHome.com

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