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The Top Payment Fraud Trends in 2024
- The top payment fraud trends in 2024 have been highlighted in a report by Visa Payment Fraud Disruption (PFD). The report states that cybercriminals are increasingly leveraging AI to perpetuate fraud. Threat actors are also increasingly using AI to conduct reconnaissance on individual victims or victim organizations by scraping available information. The report highlights the surge of PRA attacks and the sharp rise in physical theft, where criminals would exploit the delay between theft and victim awareness. Ransomware and data breaches decreased in H1 2024. However, the overall number of individual ransomware and data breach incidents tracked by Visa PFD decreased by 12.3% in H1 2024 compared to H2 2023.
- PRA attacks result in potential losses of nearly US$184,000 for Visa's issuing partners, reflecting an increase in the average cost of 58% compared to H2 2023.
- Another trend highlighted in the report is a resurgence of physical theft. A new form of fraud, known as "digital pickpocketing", has emerged.
- In H1 2024, Visa PFD's Global Risk Investigations (GRI) team recorded a 6% decrease in digital skimming incidents targeting either e-commerce merchants or third-party providers, compared with H2 2023.
- The team observed a shift in focus, with the number of digital skimming attacks targeting third-party providers declining by a staggering 83% compared with H2 2023.
- Ransomware and data breaches are still a significant challenge, particularly as attackers are increasingly targeting third-party service providers to access more customer accounts at once.
- Digital skimming continues to be a prominent threat this year.
- Threat actors create a fraudulent merchant using merchant ecosystems, and register a mobile device as mPOS terminal to initiate a card-present-transaction on the mPOS.
- Visa PFD opened a record number of PRA investigations, accounting to 81% increase from H2 2023.
- Threat actors have been observed discussing the release of new AI technology, including malicious versions of AI chatbot programs in cybercrime underground marketplaces.
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