Scams Capture 22.4% of Fraud Dollars as Banks Adjust Defenses

Fraud is shifting away from simple credit card theft toward sophisticated authorized payment scams. New data reveals that scams now account for over 22% of all fraud losses. For retailers and service providers, this means the threat is no longer just about stolen numbers. It is about your customers being tricked into approving legitimate-looking transactions that they later dispute or lose money on. Banks are currently heightening their defenses, which could lead to more friction at the point of sale. As an operator, you should expect lenders to tighten their verification protocols for high-ticket financing and Buy Now, Pay Later (BNPL) applications. Scammers often use social engineering to convince consumers to take out loans or make large transfers. When these customers realize they have been scammed, they often turn to the merchant or the lender to recoup losses. This trend puts your revenue at risk through increased chargebacks and disputed financing contracts. You must ensure your sales team is trained to spot customers who seem to be coached through a transaction, as this is a hallmark of modern payment scams. Strengthening your own identity verification during the financing application process is no longer optional; it is a necessity to protect your bottom line.

Source: PYMNTS

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