The fraud graph is rapidly going upwards with every passing day and the victims are both the businesses and the customers. According to a recent survey report by global consultancy firm PwC, 57% of frauds happen via online platforms. The report also reveals that 26% of Indian organisations lost over $1 million only due to online fraud.
In recent times, these online fraud techniques have matured and become discreet. These online frauds feed on the trust of a consumer and the reputation of a brand. Some of the latest fraud cases are so well planned that it first gains the trust of the victim to take action without an iota of doubt.
New Frauds Making The Buzz
(1) Work-from-home scams/ Agency scams: Due to the recent layoffs, a large number of people are on the lookout for new jobs. Taking this situation as an opportunity, the fraudsters are targeting job seekers by offering “shiny” job opportunities like work from home and earn daily. In some cases, they are also using the names of prominent brands and agencies to reach out to job seekers with fancy job offers.
(2) Fake customer care numbers: Another fraud taking rounds in the digital ecosystem is “manipulating customer care numbers”. The fraudsters use search ads and social media platforms to circulate fake customer care numbers. And when an unaware user ends up contacting these phished customer care numbers, they become a victim of the fraud.
(3) Romance scams: As harmless as it sounds, this is one of the vicious and discreet imposter scams that play with the trust of a user. In romance scams, usually, the fraudsters go to great lengths to gain your trust and interest. Once the equation is set, the fraudsters often pose fake emergencies and ask for money. In most cases, as the victim starts trusting the imposter, they agree to transfer the money. How Brands Can Safeguard Their Reputation
These fraudsters use the brand reputation created by enterprises to commit various types of frauds. They create a web of fraudulent traps by impersonating the brand’s website, customer care number, logo and social media handles. When a user becomes a victim of these frauds, they blame the brand.
Phishing scams and imposter scams can be damaging to both brands and their customers. To take action against these scams, brands can implement several proactive measures. Here are a few:
(a) Educate the customers about the risks of phishing and imposter scams.
(b) Adopt robust security protocols and multi-factor authentication to protect consumers’ interests.
(c) Take proactive measures in identifying these phishing scams where the brand name is involved.
(d)Keep a check on the online platforms and set up alerts to identify potential scam attempts.
(e) Set up a seamless reporting mechanism for customers to report suspected scams and instances of impersonation. Fraud is evolving rapidly, necessitating a proactive approach from brands to protect their reputation and maintain trust and transparency with their customers. By staying updated about emerging fraud trends, educating customers, implementing robust security protocols, monitoring online platforms, and establishing reporting mechanisms, brands can effectively combat the impact of fraud.
—The author, Amit Relan, is Founder and CEO at mFilterIt, a pioneer in the space of Ad Traffic Validation (ATV), Brand Hygiene Protection, Ecommerce Intelligence and Account Takeover Protection. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Feb 24, 2024 10:17 AM IST
