Beware of fraudsters using tactics, both new and old

From old-school fraud to digital scams, there are a number of ways fraudsters are finding their way into consumer pockets. In the latest edition of the global report, State of Scams: Fall 2024 Biannual Threats Report, Visa identifies emerging threats and scams targeting banks and consumers.

Old-school fraud is back

With the rise of sophisticated social engineering and digital identity scams, network security has become a priority for those in charge of protecting customer data. Visa alone has invested $11 billion over the last five years in technology and innovation to protect its global payments network. However, the global report found that fraudsters are now reverting to old-school methods like stealing physical cards to purchase items for resale, buy gift cards or use the card number to shop online or transfer money.

Impersonation scams surge

Fraudsters posing as government representatives are succeeding in exploiting unsuspecting victims and stealing their personal information and money. In the first three months of 2024, the average government impersonation scam victim in the U.S. lost $14,000 in cash, totaling more than $20 million. Cash losses from government impersonation scams increased 90 percent, in fact, between 2022 and 2023. Visa predicts that banks will see an increase in large ATM withdrawals due to fraud as government impersonation scams continue to rise.