Table of Contents
EverC, a major Israeli technological innovation enterprise specializing in AI-driven service provider and marketplace threat intelligence, has introduced its yearly trends report, which sheds gentle on the most commonplace world-wide transaction fraud traits in 2022.
The report, titled “The 2023 Danger Landscape: A Report on Developments in Illicit E-commerce Action,” highlights the difficulties confronted by many players in the payments ecosystem, which include banking institutions, acquirers, payment vendors, and online marketplaces.
Top rated threat: transaction laundering
Transaction laundering is a system of “digital funds laundering,” in which criminals use reputable corporations to procedure digital payments for illegal functions. This will make it challenging to track the revenue and identify the criminals associated.
According to EverC’s results, transaction laundering emerged as the most typical strategy utilized for illicit payment exercise, accounting for a staggering 22% of all fraudulent transactions in 2022. Furthermore, the report reveals that transaction laundering witnessed the major maximize in the initial quarter of 2023, surpassing all other sorts of fraud by a considerable margin with a staggering 39% rise.
The prevalence of transaction laundering as a preferred process for facilitating monetary crimes is a issue of concern thanks to its broad-ranging adverse effect. The anonymity provided by transaction laundering allows criminals to establish fraud rings globally, some of which have been discovered to be joined to human trafficking networks or recognised to supply help to terrorist corporations.
Prescription drugs, gambling, pirating, porn, and make-up
The report also reveals that pharmaceutical fraud, mental property legal rights infringement, and gambling tied as the 2nd most prevalent varieties of illicit e-commerce activity, each accounting for 15% of transactions.
Rating slightly down below people were the sale of illegal substances at 12%, and grownup articles at 9%.
The sale of counterfeit goods also represents a important obstacle in the on line marketplace. In 2022, EverC properly eradicated around 40,000 counterfeit items from its spouse marketplaces, focusing on faux cosmetics. Amongst these goods, perfumes accounted for 63% of the seizures, adopted by skincare (16%) and make-up (15%), with a blended benefit exceeding $2 million.
Can AI take care of it?
Addressing these pervasive fraud trends, EverC is acquiring an highly developed AI-driven danger administration remedy designed to swiftly detect substantial-hazard merchants, transaction laundering, and illicit products. Also, the platform presents ongoing checking to recognize evolving risks, equipping chance and compliance groups with actionable intelligence for producing informed decisions dependent on proof.