Young adults, Silent Gen most susceptible to cybercrime
LexisNexis found economic pressures are pushing people into fraudulent behavior, including bank account 'mule recruitment' schemes.
The consumers that adopted new digital tools for convenience and safety during the pandemic are also the weakest links when it comes to cyberattacks, according to LexisNexis Risk Solutions, which reported consumers 25 and younger as well as adults older than 75 years are the most susceptible to fraud attacks.
This is because the former group has seen 10% growth in terms of new online customers, while the Silent Generation is less familiar with technology. Additionally, millennial consumers have a more laissez-faire attitude toward sharing data online, exposing them to increased risk, according to LexisNexis.
To best prevent fraud, a layered approach should be taken, according to Rebekah Moody, director of fraud and identity for LexisNexis.
“Uniting the best digital identity intelligence with physical identity solutions and behavioral biometrics intelligence can be the game-changer that organizations need to lessen the unpredictable tides of fraud,” she said in a release.
Although susceptibility to fraud is seen across cohorts, the average fraud loss per customer increases steadily with age. LexisNexis explained this is likely due to older demographic members having more disposable incomes.
“Cybercriminals are opportunists first and masters of disguise second. They are always on the lookout for a new target, whether this is new lines of credit, new online businesses or new-to-digital consumers,” Moody said. “While digital businesses are working hard to better provide for new and existing customers, they must identify and mitigate potential risks moment by moment in order to protect consumers from becoming victims of fraud.”
Economic pressures, bots escalate the situation
Looking at fraud from another angle, LexisNexis noted the economic downturn could draw some consumers into “mule recruitment” schemes or allowing hackers to funnel proceeds of crime through their bank accounts in return for fast money. Similarly, eCommerce retailers are likely to see growth in first-party fraud as some consumers continue to feel economic pressures from the pandemic.
While money issues can lead some people down dark paths, LexisNexis reported human-initiated attacks fell out of favor in 2020. However, bot attacks grew by 100 million.
Whether human-driven or bot-led, most attacks were initiated in the U.S., while Canada, U.K. and Germany were also in the top 10. Developing regions are also increasingly contributing to fraud attack volume, according to LexisNexis. Guatemala, Bahrain and Zimbabwe are seeing a spike in human-initiated attacks, while the Isle of Man, United Arab Emirates and Nigeria have experienced a larger number of bot attacks.
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