Covid-19 Fraud

This undesired pandemic has affected our lives immensely. Not only it produced collateral damage, but it has also influenced our day-to-day chores and fiscal crisis. Digital fraud continues to rise significantly against consumers since the outbreak of COVID-19.

Automation, electronic commerce, and investment companies have progressed relatively well in the pandemic and were pointed with the most online fraud early in the epidemic. From this report, one can acquire knowledge of the schemes associated with pandemic frauds in many industries that are rapidly increasing.

Credit Card Scam

From the recent analysis of the consumer hardship report, it can be observed that this is the leading type of COVID-19scam. The most frequent scheme of credit card scam that is highly used by fraudsters is Card-Not-Present deceit. It includes tricksters attaining stolen credit card data (likely from data junks) to commence natural monthly deposits or purchasing gift cards for greater purchases.

It can lead to high-priced repayments and loss of yield for banks, businesses, and consumers. Many businesses are implementing various sorts of authentication tools for the consumers to ensure that the client is genuine.

Phishing Scam

It is the most simple and common method of COVID-19 fraud that is rising at the start of the pandemic where trickster target consumers by contacting them via email, calls, or messages by constituting as an authorized institution to allure consumers into gaining sensitive information like personal details, banking, and credit card essentials, fraudulent purchases, and passwords. Identity verification has been added to assist in combating phishing fraud.

Ghost Broking Scam

This scam is also on the rise as consumers affected by COVID-19 hunt for discounted policies from insurance companies. Ghost broker fraudsters target to sell fake or invalid insurance policies to vulnerable customers for what seems to be very low premiums.

To combat such a powerful scam, agencies are adding biometric authentication to differentiate clients from swindlers.

Shipping Scam

This technique has been relatively increasing because of the escalating adoption of e-commerce. Following the pandemic, it has become a top type of scam. Shipping scam occurs when cybercriminals divert the purchased items to their own addresses rather than to the buyers.

These customers may have purposely paid their expenses or had their data stolen. To avoid shipping fraud, many e-commerce companies have installed Device Risks checks at checkout or have installed push authentications for the items that are targeted for robbery.

Conclusion

Thus, the latest consumer hardship report discloses the impact COVID-19 is having on businesses and customers. To prevent such frauds, some additional steps can be taken, like using multifactor verification, deliberately changing the passwords, and not opting for social platform quizzes that ask for personal details.