The post-pandemic economic landscape is experiencing an alarming rise in fraudulent activity affecting both businesses and consumers. With 75% of creditors experiencing heightened fraud losses and a 50% increase in fraud reports as per the FTC, the situation grows increasingly challenging.
The expansion of e-commerce and the increasing sophistication of the dark web as a marketplace for stolen data exacerbate cybercrime threats. Moreover, lenders struggle to differentiate vast numbers of newly-formed businesses from bad actors due to limited data history available for decisioning. Amidst this, while Artificial Intelligence offers substantial promise in combatting fraud, it also significantly expands fraudsters’ toolboxes and poses significant fraud risks to creditors and consumers.
To address these pressing concerns, businesses must step up their fraud risk management game by proactively adopting new fraud detection data and capabilities, and by integrating commercial entity and consumer data into their fraud decisioning strategies.
What I am watching:
The latest inflation report and jobs report showed positive news for the economy. Unemployment remains low and job creation is slowing but still strong. Inflation was down to 3% in June, the lowest in over two years, and closing in on the Fed’s target of 2%.
Despite earlier indications of more interest rate hikes this year, this encouraging news may lead the Fed to leave interest rates alone at their upcoming July meeting.
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