Page 10 - index

RESEARCH, ANALYSIS & TRENDS

Top Fraud

Predictions for

2015:

Technology will

shape the fight

Technology will give fraudsters an edge in 2015, but it “These breaches have exposed widespread vulnerabili-
will also provide new tools for organizations and investi- ties among organizations that store and maintain per-
gators, according to three experts from the Association sonal information, putting millions of individuals at risk,”
of Certified Fraud Examiners (ACFE) who were asked Dorris said. “Considering that storage of data continues
for their top fraud predictions for 2015. to grow at an exponential pace, more trouble lays
ahead – and there is an increasing need for information
The experts (Gerald Zack, Bruce Dorris and Jacob security and protecting against data breaches.
Parks) weighed in on digital currencies, information se-
curity and other issues that will help shape the effort to 4) Digital currencies will shake up fraud risks for
prevent and detect fraud in the new year: retailers and consumers.

1) Technology will increase the sophistication of An increased acceptance of bitcoins and
fraud schemes.
other digital currencies among merchants
This is an existing trend that will accelerate will signal a shift in fraud risk, according to
in 2015, according to ACFE Regent Gerard Jacob Parks, J.D., CFE, Associate General
Zack, CFE, Managing Director – Global Counsel at the ACFE. “Vendors/sellers
Forensics for BDO Consulting. “More and face reduced fraud risks from ‘friendly
more we are reacting to reports of fraud fraud,’ where customers fraudulently can-
with ‘how did they do that?’, Zack said. “It’s cel credit card or bank payments after re-
a reflection of schemes becoming more ceiving an item,” Parks said. “Digital currency transac-
complex and capitalizing on technology, tions are generally permanent, which makes this
including some of the new technology deployed by scheme untenable. However, consumers face an in-
companies in the interest of improving efficiency. While creased risk of fraud by dishonest sellers, since the
simple fraud still exists, we are seeing a distinct prolifer- transaction is often not insured or protected by an
ation of more complex fraud schemes.” agreement with a financial institution”, he added.

2) But technology (like data analytics) will also help Additionally, consumers using digital currencies have a
catch tomorrow’s frauds. reduced identity theft risk, because the transactional
data stored by the seller cannot be used by malicious
Zack is quick to note that for fraudsters, technology is a parties to charge the customer (this also means ven-
double-edged sword, as it is leveraged as well by pro- dors have a reduced risk of data breaches involving
fessionals trying to catch criminals. “There will be more these customers).”
breakthroughs in the use of technology to detect fraud –
particularly in the use of visual analytics and also in the 5) With protections for whistleblowers increasing,
use of tools to mine unstructured data. Tools that were more people will step forward to report fraud,
thought of as cutting edge just a year or two ago will
seem ancient in another year or two”, he stated. Dorris said, pointing out that a decade ago, few coun-
tries had whistleblower protection. However, increased
3) Improving information security will be a major awareness about the harm caused by major fraud at
priority.
organizations has led to legislators looking to whistle-
blowers to prevent or mitigate such crimes. “France,
More massive data breaches, like the South Africa, South Korea, Australia and other coun-
ones that have stricken Home Depot, Tar- tries have all taken substantial reforms to protect whis-
get Corp. and other large retailers over the tleblowers, particularly those who identify crimes in the
past two years, are likely to occur in 2015, public sector,” Dorris said: “U.S. policy has moved be-
according to ACFE Vice President and yond simply protecting whistleblowers; it now has sev-
Program Director Bruce Dorris, J.D., CFE. eral programs that financially incentivize whistleblowing

10 Asian eMarketing January 2015 - Digital Marketing Trends & Predictions