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Co-op Solutions said digital fraud and its subsequent losses are expected to increase in 2023.
"In our recent conversations with industry experts, Co-op's payment network partners, and credit union professionals, three fraud trends rose to the top," the Rancho Cucamonga, Calif.-based payments CUSO reported recently in its Co-Op Weekly newsletter.
The three trends were card-not-present fraud, phishing, smishing and vishing schemes, and account takeover or ATO.
Card-not-present fraud is projected to account for 90% of the $1.57 billion overall growth in total U.S. card fraud losses from 2022 to 2024, according to Co-op Solutions.
"Phishers (email fraud) and smishers (text fraud) will often spoof popular brand names to encourage their victims to click through," Co-op Solutions reported. "The top organizations impersonated by phishers worldwide included Microsoft (13% of attacks), Google (11%), Facebook (10%), Apple (10%) and PayPal (6%)."
ATO attacks have victimized more than one in five adults in the U.S., accounting for losses of $12,000 per victim, Co-op Solutions said.
The California CUSO pointed out that ATO fraudsters are leveraging "deep fake" attacks, which use synthetic IDs – a combination of real and phony identity data – to form a "new, composite person."
Co-op Solutions suggested frequent and comprehensive member education is one of the best ways to counter digital fraud schemes.
"It's important to offer your members a variety of fraud-prevention tools, such as self-service card controls and alerts like CardNav and multi-factor authentication through one-time passcode (OTP) and other means," Co-op Solutions advised.
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