We can now consider as obsolete those phone calls from private numbers offering tempting loans that require a “small, up-front down payment.” When we talk about fraud these days, we’re also talking about a brand’s digital presence, which can be used as bait to attract and undermine the company’s own clients. It’s no coincidence that even the laws (e.g., Europe’s General Data Protection Legislation—GDPR) state that financial institutions must protect their clients from deceitful schemes designed to gain financial advantage.
To understand what digital fraud is, we need to go back to the crime’s most basic definition. Fraud is illicitly taking advantage of a victim who has been deceived and lured into error through malice, cunning and/or influence.
In this article, we’ll be addressing a specific kind of digital fraud—the creation of fake finance company pages (offering loans) with the goal of collecting personal information or deceiving potential clients with “credit check” or “registration” fees for the funds to be released. This scam usually occurs through two primary presentations, as follows:
This type of fraud, which is usually very subtle, is perpetrated through a webpage that presents a brand created out of nowhere, trying to be as persuasive as possible. The criminals manage to generate credibility by using stolen data, such as another company’s Federal Tax ID, in case the client wants to confirm whether the finance company is trustworthy.
A second type of fraud may or may not use a Federal Tax ID, depending on the scammer’s preference. Either way, a legitimate brand’s logo and visual identity (as well as its credibility) are appropriated. These scams are very visible, but that doesn’t mean that they’re easily detected.
The most important item in identifying these scams is the URL. They generally try to imitate the name in a manner quite similar to the legitimate page (changing one character, for example). They may also have clues like “creditfast&easy,” which would rarely be used by genuine brands.
Data leaks, which usually emerge from capture strategies such as phishing or through system hacking, may in fact wreak havoc on the affected company and consumer. Even so, the damage resulting from the fraudsters can’t be ignored. There are skilled cybercriminals who invest time and money in their scams.
Axur can come alongside your company to help protect you from such criminal activity. On the Axur One platform, there’s a solution that can protect you against fraud, fake profiles and also similar domain names. Contact us and find out how our thousands of robots and artificial intelligence can be your allies in protecting your credibility and guarding your digital presence.