Smishing on the Rise
The report analyzed over 1.5 billion global transactions completed in the second quarter of 2021 to paint a picture of the state of financial crime, consumer spending habits, and the top fraud trends.
Purchase scams, where consumers pay for products or services that never arrive, topped the list of fraud scams, followed by scams involving social engineering, impersonation, and account takeover (ATO).
Smishing, where scammers send text messages to trick consumers into clicking on dangerous links and sharing personal information, made it onto Feedzai's top five list for the very first time as the fifth most common fraud scam.
Analysis of the data also revealed a continuous move to cashless transactions, with a 146% increase in peer-to-peer (P2P) payments and a 44% decrease in cash transactions. Online transactions grew by 109% to nearly double the number of in-person or card-present transactions.
Financial criminals have exploited the shift, with the result being that the number of online card fraud attempts increased by 23% between April and July 2021.