Digital fraud is accelerating, and the numbers underline why consumers and businesses are treating prevention as a basic requirement rather than a nice-to-have. In 2024, the Federal Trade Commission (FTC) reported consumer losses of $12.5bn to fraud, a 25% increase on the previous year, with many cases still thought to go unreported.
Criminals are increasingly using automation, AI and social engineering to scale scams, making “digital fraud blocking” as much about behaviour as it is about tools, said AiPrise.
When fraud succeeds, the damage often goes beyond the initial theft, potentially triggering identity fraud, credit problems, regulatory exposure, and lasting reputational harm for organisations that fail to protect customers.
One of the most effective ways to reduce risk is simply slowing down. Many scams rely on urgency to override judgement, using messages about a “failed delivery” or an “unauthorised bank transfer” to push immediate action. Generic greetings, unusual formatting, poor grammar and high-pressure language can all be warning signs, while checking the sender’s real email address and using official contact details from a company website can prevent an impulsive mistake.
Reducing the availability of personal data is another key layer of defence. Fraudsters often build profiles from small pieces of information collected over time, including from physical documents. Shredding paperwork such as old bills and bank statements can help prevent identity theft, while keeping sensitive items secure and limiting what is shared publicly on social media can reduce exposure. For many financial services sign-ups in the US, identity checks typically rely on documents such as a valid US driver’s licence or state ID, a US passport, a Social Security card (often for tax verification), a permanent resident card, and proof of address like a recent utility bill or bank statement.
Strong authentication remains one of the simplest upgrades with a major impact. Multi-factor authentication (MFA) adds a second step beyond passwords, making accounts harder to take over even if credentials are stolen. App-based authenticators are typically preferred over SMS codes due to risks such as SIM swapping, and recovery codes should be stored securely offline. Biometrics such as face ID or fingerprints can also strengthen everyday account access on mobile devices.
Passwords still matter, but reuse is where many people get caught out. If a single login is exposed in a breach, attackers often try it across multiple sites in a technique known as credential stuffing. Using a password manager can support the shift to unique, long passwords or passphrases for every account, and changing passwords quickly after breach notifications can limit fallout.
Links, attachments and login pages should also be treated with default suspicion. Phishing scams often replicate trusted brands and funnel victims to fake sites designed to capture credentials. Hovering to preview URLs, typing addresses manually, checking for “https://” and being wary of shortened links can reduce exposure. Unexpected attachments should be avoided, as even common formats can be used to deliver malware that captures keystrokes and passwords.
Security also depends on the state of your devices and networks. Regular updates patch vulnerabilities that criminals actively exploit, while reputable anti-malware tools and strong home Wi-Fi settings (including modern encryption) help keep attackers out. Public Wi-Fi can be risky for financial activity, so avoiding sensitive transactions on open networks, or using a VPN when necessary, can reduce the likelihood of interception.
AI-driven scams are adding a new layer of sophistication. Deepfakes can mimic voices and faces, enabling convincing “family emergency” or impersonation attempts with only limited source material. A practical response is setting a family safe word, verifying urgent requests through trusted channels, and being cautious of unusual glitches or unnatural movements on video calls. At the same time, AI is improving phishing quality, making independent verification more important than spotting obvious errors.
Finally, online shopping and payments remain a consistent target. Fake storefronts and too-good-to-be-true discounts are common traps, and payment methods such as wire transfers, gift cards or cryptocurrency are frequently associated with fraud due to limited protections. Using credit cards rather than debit cards can reduce direct exposure, and checking independent reviews and order confirmations can help spot issues early.
If fraud happens, speed improves the odds of limiting harm. Contacting your bank or card provider to freeze accounts, changing passwords, and reporting incidents through the FTC’s reporting channel are practical first steps, alongside keeping a clear record of communications and actions taken.
For businesses, prevention is increasingly shaped by technology stacks that combine identity and transaction controls. RegTech capabilities such as KYC and KYB can help verify customers and counterparties at onboarding, while AML monitoring can identify suspicious activity patterns. Fraud risk management tools can add behavioural signals—how a user types, device fingerprints, location patterns—so unusual activity can be blocked quickly, and automation helps scale protections without destroying the customer experience.
Copyright © 2026 RegTech Analyst
Copyright © 2018 RegTech Analyst
