Despite industry and IRS gains in the fight against tax refund fraud and its ripple effects prior to 2020, the pandemic ushered in a new era of fraud.
Sixty-two percent of large banks reported increases in financial crime, according to The State of Fraud and Financial Crime in the U.S., a 2022 PYMNTs-Featurespace report. Meanwhile, the average cost of digital payments misuse for financial institutions (FIs) topped $120 million in 2021, the survey found.
Growing fraud threat
increase in account takeover fraud losses from 2020-2021
increase in 'friendly fraud' between 2019-2021
increase in ACH/Debit from from 2019-2021
Ubiquity’s Chief Operating Officer Corey Besaw recently sat down with the Innovative Payments Association to discuss the fraud trends pushing cardholder dispute and chargeback volume higher, and how the business process outsourcer is helping its digital banking clients spot fraud schemes and mitigate losses.
Fraud’s downstream impacts: more consumer disputes
Surges in account takeover losses and first-party fraud, which is often more difficult to measure, have significant downstream impacts, including rising dispute volume. The cost for financial services providers to manage fraud also has ballooned 22.4% since early 2020, up to $4.36 for every $1 lost to fraud, according to LexisNexis survey data.
In this webinar, you’ll learn:
- How fraudsters are adapting their tactics and exploiting consumer protections
- Emerging fraud schemes and how to spot them
- Dispute and chargeback management strategies that mitigate fraud while delivering a better customer experience