GLOBAL TRENDS OF FINANCIAL FRAUD

Abstract

The active use of the latest information technologies and non-cash payment forms has led to an increase in various types of fraud in the financial sector. Moreover, virtually all spheres of public relations now fall under the risk of fraudulent schemes, starting from financial credit and insurance and ending with foreign economic activity and the Internet. Fraud is on the rise across the globe. Criminals are exploiting the convergence of social media, technology, and social engineering to create more potent and widespread scams. They are frequently designed to combine legitimate and unlawful dealings and payments, making it challenging to determine the full extent of criminal operations. When people commit financial crimes, they typically misrepresent or conceal the true nature of their transactions, assets, or ownership of entities. The article examines the main trends of financial crimes and their impact on the economy. Financial crime ranges from basic theft or fraud committed by ill-intentioned individuals to large-scale operations masterminded by organized criminals with a foot on every continent. There are many different ways fraudsters can use financial data and stolen property to commit financial fraud. Various online methods such as phishing and malware can give them access to passwords and account numbers, and more traditional techniques such as pickpocketing or stealing discarded documents can lead to card or account fraud. Consumer fraud occurs when a person suffers from a financial loss involving the use of deceptive, unfair, or false business practices. With identity theft, thieves steal your personal information, assume your identity, open credit cards and bank accounts, and charge purchases. Mortgage scams are aimed at distressed homeowners to get money from them. Credit and debit card fraud is when someone takes your information off the card and makes purchases or offers to lower your credit card interest rate. Fake charities and lotteries prey on people's sympathy or greed. Debt collection fraud tries to collect on unpaid bills whether they are yours or not. Accelerating digital initiatives by financial institutions has increased online fraud and financial losses. The boom in digitization has created multiple channels for fraudsters to exploit, driving fraud and financial crime losses to record levels worldwide. In addition, the use of new technologies makes it easier to commit fraud and financial crimes, attracting more fraudsters.