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Fraud Trends Put Fragmented Defenses Under Pressure – PYMNTS.com

The 43% of scam victims who pay fraudsters within an hour present banks with an obvious problem. There may be almost no time to stop the transaction.

The 18% who take at least two weeks present a different one.

The findings, conveyed in the September PYMNTS Intelligence report “Fraud’s Loyalty Tax: How Scams Cost Banks Their Customers,” showed that scam payments operate on different schedules. According to the report, 63% of victims paid within a day of first contact, but nearly 1 in 5 took two weeks or longer.

The slower cases are concentrated in some of the scams capable of producing large losses. Romance scams carried an average loss of $27,587, second only to travel scams at $35,272, while investment scams averaged $14,225. Only 16% of romance scam victims paid within a day, with a median of at least two weeks. For investment scams, 37% paid within a day.

What happens…

CLICK HERE to read the FULL Fraud Trends Put Fragmented Defenses Under Pressure – PYMNTS.com article.

Insurance fraud involves making false or exaggerated claims to an insurance provider.

  • Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
  • Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.
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