Scam prevention must evolve to protect users online, says Michael Smith, pictured, Solution Consultant at Callsign.
The way we use the internet doesn’t stand still. Social media is nothing new, but what platforms are popular and how we interact with them is ever-changing. We saw this with the advent of Meta’s ‘Threads’ app which saw 30 million users sign up within one day of launching. Unfortunately, where there is rapid growth there are accompanying security concerns. With social media channels, this is especially important in the context of criminals’ ongoing use of online platforms to scam their victims.
In fact, research from British trade association UK Finance reveals that a staggering 61 per cent of reported authorised push payment (APP) fraud – when an individual is tricked into authorising a payment to an account controlled by a criminal – is linked to social media platforms. APP fraud has become one of the most prevalent types of fraud in the UK, amounting to nearly £500m in losses in 2022 – with almost 80pc of cases starting online. As the total number of platforms and users continues to grow, scam prevention must evolve to protect people online and help them identify the unique types of scams used by criminals, whether that’s impersonation, investment, romance or purchase scams.
Callsign’s latest scams research reveals that one in three consumers has fallen victim to a scam on social media, making it the most successful channel for fraud. This trend is particularly pronounced across the younger generation, who are more active and trusting users of social media, and this is only set to grow as more young people live even more of their lives online.
Social media is an ideal breeding ground for scammers exploiting this vulnerable age group by devising cunning tactics that deceive even the most cautious users. The rise in scams on social media platforms also helps to explain why there is a gap in the generational experience of scams, which come in various forms and target different age groups through a variety of channels and vectors.
Consequently, combating scams requires a multifaceted and tailored approach to prevention. While older generations might be more susceptible to email-based or telephone scams, younger users are at higher risk of falling victim to social media-based scams. This complexity highlights the need for scam prevention strategies and solutions to recognise scam signals and intervene dynamically to address each group’s unique vulnerabilities and take into consideration the different channels that criminals use to target their victims.
The importance of collaboration and education
There have long been questions around where the liability lies in scam prevention. The UK government has taken a step in the right direction in outlining its Fraud Strategy, which aims to pursue fraudsters worldwide, block criminals from taking advantage of people across various online channels, and empower the public by supporting victims of fraud.
However, for the strategy to be effective, the UK needs to adopt a dynamic approach to fraud prevention. As scammers constantly evolve their tactics and technology continues to advance, it is essential for government, law enforcement, and industry to collaborate and create solutions that enable them to stay one step ahead of the fraudsters. By constantly adapting and updating fraud prevention techniques, we can build a more formidable defence against scams.
Furthermore, empowering the public is a critical aspect of any scam prevention strategy. Opening the conversation with anyone who is a potential scam target means they are provided with the knowledge to better understand how to protect themselves from fraud, how to report fraud, and what to do if they become a victim of fraud. As scam tactics evolve, so must individual awareness and education about online scams. By providing people with comprehensive resources and guidance on recognising and avoiding scams, individuals can be empowered to make informed and safer decisions when taking calls, responding to emails or interacting on social media.
Understanding the changing landscape
Alongside the government, the tech sector has a role to play in stopping fraudsters and protecting users online. To keep pace with the rapidly changing scam landscape, companies can leverage vast amounts of user data and artificial intelligence (AI) technologies to reveal patterns and identify potential fraud attempts before they cause significant harm. For example, AI-driven algorithms can detect unusual behaviour and flag potential scams in real-time, alerting users to exercise caution and creating a safer online environment in the long-run.
At the same time, it is essential to strike a balance between privacy and security when enhancing scam prevention measures. As more data is collected and analysed for fraud detection, concerns about user privacy may arise. Balancing privacy and security requires transparent communication with users about data usage and giving them control over their information – creating a safer digital ecosystem without sacrificing individual freedom.
Protecting users from fraud has become more crucial than ever before, with the alarming rise of scams – particularly on social media platforms – calling for a significant evolution in scam prevention strategies. A dynamic, collaborative and tailored approach to scam prevention, combined with user education, data analysis and AI, can bolster defences against more intelligent scam tactics, helping to safeguard online users and preserving trust in the digital world.
