Consumer digital activity is still at a high despite the growth in digital fraud

Cybercrime continues to grow in scope and complexity, affecting enterprises, private citizens, and critical services.

11:33 28 June 2022

The level of national security across the world is being threatened and cybercrime is costing businesses and consumers dearly.

For example, the cost of fraud in 2021 had a tremendous impact on the UK economy, as it reached almost £137,000,000,000 within that year. That amount was equivalent to consumers being able to purchase 361,477,572 smartwatches, 304,451,210 PlayStation 5’s, and 27,400,000 round-the-world flights.

However, despite digital fraud increasing, recent times have still seen an increase in digital growth activity and spending.

The growth in digital activity and digital fraud

The growth in digital activity and digital fraud has caused concern among consumers worldwide about the safety of their personal information. Consumers worldwide place the highest emphasis on security when using the internet.

Choosing between the ease of online transactions and the necessity for security comes down to which companies the people trust. Consumers have the highest faith in payment system providers, credit card firms, tech companies, and streaming services to address internet security issues.

Customers claimed that regardless of the business size, if a brand consistently delivers excellent digital experiences, customers will have faith in the company to protect their data. Customers expect protection from businesses in return for their willingness to give data, with 57% of consumers reporting that they are willing to do so if doing so increases security or reduces fraud.

Consumers expect firms to take the appropriate security precautions to safeguard them online in about 75% of cases. Businesses, however, report that combating fraud is their top priority, indicating a disconnect between what consumers want and what companies provide in terms of security.

This disconnect is likely because consumers have no clear consensus about which security measures are most effective.

Physical biometrics and pin codes for devices are the two most preferred methods, but there is no clear front-runner. This lack of consensus makes it difficult for businesses to know which security measures to implement.

Even though consumers are worried about digital fraud, they still place the highest emphasis on security when using the internet. This means that businesses must focus on providing excellent digital experiences that will earn consumers' trust.

Exceptional digital experiences should include appropriate security measures to safeguard consumers' information. Only by providing these excellent experiences can businesses hope to earn the trust of their customers.

To address this issue, businesses should focus on communicating with their customers about the steps they are taking to protect their data, utilise dark web monitoring services to ensure that their customers’ personal data hasn’t been compromised, and ensure that their security measures are up to date.

Reasons for the growth in digital fraud

There are many reasons for the growth in digital fraud, despite businesses' best efforts to prevent it. One of the primary drivers is the increase in online activity and transactions because of the COVID-19 pandemic. The shift to remote work and online shopping has created more opportunities for cybercriminals to exploit people and businesses.

In addition, cybercriminals are becoming more sophisticated in their methods and are constantly strengthening their techniques to stay ahead of businesses' defences. They are also taking advantage of the fact that many people are not as cyber security-savvy as they should be.

This lack of awareness creates opportunities for cybercriminals to trick people into revealing sensitive information or downloading malware.

What businesses can do to combat digital fraud?

• Have strong cyber security defences in place, including firewalls, malware protection, and intrusion detection systems.
  
  
• Educate their employees about cyber security risks and how to avoid them.
  
  
• Implement customer authentication measures, such as two-factor authentication (2FA) or multi-factor authentication (MFA). These
  authentication measures make it more difficult for cybercriminals to access people's accounts.
  
  
• Have a plan for what to do if they suffer a data breach. This plan should include steps for how to notify affected customers and how to prevent future violations.
  
  

What consumers can do to protect themselves from digital fraud?

Consumers can also do a few things to protect themselves from digital fraud. First, they must know the risks and know how to spot signs of fraud, such as phishing emails or strange messages from unknown numbers.

In addition, consumers need to be careful about what information they share online and only share it with trusted websites and businesses. They also need to keep their software and anti-virus programs up to date and be cautious about clicking on links or downloading attachments from unknown sources.

Conclusion

Despite the growth in digital fraud, consumers are continuing to increase their online activity. Many are now using the internet more than ever to shop, bank, and socialise. This growth in digital activity is driven by convenience, better security features, and the increasing trust that consumers have in online businesses.

To stay safe from this cyber threat, businesses must employ dark web monitoring services to protect themselves and their customers. And consumers need to be aware of the risks and take steps to protect their personal information.