Report

The state of transactional fraud

Unfamiliar threats, continued risks for communication platforms

Rising fraud threats in business communications

Phishing. Brushing. SMS pumping.

The rise in transactional fraud is a multifaceted issue, significantly influenced by the broad spectrum of channels fraudsters exploit. This includes voice calls, messaging services, digital platforms, fake accounts, identity theft, SIM swaps, and more. CPaaS (Communication Platform as a Service) and CCaaS (Contact Center as a Service), like all companies, are no strangers to fraud attempts. There is a complex set of factors causing fraud to increase worldwide, and none of the individual drivers are expected to disappear in the coming years. As companies and people alike have increased their online presence, the size and scale of transactional fraud globally have skyrocketed. The numbers are alarming: with estimates from Juniper Research projecting $362 billion in total merchant losses between 2023 and 2028.

Communications services: a prime target for malicious actors

The issue of cybersecurity is of vital importance. As companies deal with large amounts of sensitive customer data, from contact details to payment information, they – and their individual customers – become compelling targets for far-reaching attacks. Communications service providers must remain proactive and vigilant to combat rising fraud threats. Many are already leading the way, using advanced AI and machine learning tools to help safeguard the ecosystem. But is it enough to tackle new advanced fraud threats? How else can communication providers be supported in their fight against fraud?

Alternative payment types

APMs (Alternative Payment Types) are becoming more popular. Though these alone do not pose a higher risk than card payments, they are adding another easy way for customers to pay for goods quickly – and arguably, without enough consideration.

Mobile orders

The use of mobile devices for placing online orders is on the rise: Forbes predicts that 91% of people now make online purchases using their smartphone. Compromised smartphones can give bad actors a gateway to vast amounts of personal data, leading to further scams.

New forms of fraud

New and more innovative forms of fraud emerge every day, which companies are not prepared to deal with. MFA (Multi-Factor Authentication) fatigue and AIT (Artifically Inflated Traffic) are on the rise, showing that OTPs (one-time-passwords) – once thought to be a failproof security measure – are no longer reliable.

Inflation

Faced with rising costs, organizations might be tempted to cut cybersecurity spending and put themselves at further risk. Cybersecurity budgets in US and Canada decreased by 65% during the 2022-2023 budget cycle, rendering companies unable to deal with new and emerging types of fraud (Source: IANS Research and Artico Search).

Generative AI

The use of generative AI has enabled technological advancements across industries and is also a great resource for improving security measures. However, AI can also support bad actors looking to exploit people’s vulnerabilities, so its widespread use has also led to a spike in criminal activity.

Your questions, answered

To paint an accurate picture of today’s fraud landscape, BICS put a set of questions to global industry experts. We wanted to know which types of fraud they are and aren’t prepared for, what solutions they have tried, and why these have failed to fulfil their expectations.

Our overall goal was to understand what experts need from fraud solutions and how we can help keep their minds – and that of their customers – at ease.

The analysis draws from:

A comprehensive survey of 250+ CPaaS and CCaaS decision-makers

to uncover the impact of fraud and the industry’s positioning
BICS’ original research

drawn from our database of global threat intelligence

Take action against fraud

Your Name:(Required)

Select your country:(Required)

Business Email:(Required)

Company Name(Required)

Company website(Required)

Hidden

Your Phone: