2023 Financial Fraud Trends & Predictions

Financial institutions are making more concerted efforts to focus on the customer experience and education, and it’s time to explore the idea of how the rising popularity of cryptocurrency, advancements in digital identification technology, and regulatory rumblings regarding scams and fraud will affect consumers in the coming months. FIs should be on the lookout for consumers who look to them for guidance on crypto investing as the digital currency continues to gain momentum with retail bank consumers. FIs must also be prepared to educate consumers on the basics of crypto and scam threats. Wider acceptance of digital identities and mobile IDs is also on the horizon. Consumers are more likely to accept digital advancements like mobile government-issued IDs as many daily tasks and activities have become digital-centric, but privacy concerns and the idea of an additional attack surface for cybercriminals may introduce some roadblocks. Finally, concerns over spiraling fraud and scams in the P2P arena have regulators doubling down on financial loss liability, creating a significant need for clarification in responsibility between FIs and consumers. 

Identity fraud continues to rise, so any forward momentum in technology, currency, and regulations from financial institutions, financial services technology providers, and government entities must bear in mind that fraud is still a serious issue affecting millions of U.S. consumers and needs to be immediately handled as the start of 2023 draws nearer.