5 ways COVID-19 changed the nature of payments fraud
As many businesses and consumers have been forced to deal with the difficult conditions thrust upon them by the COVID-19 pandemic, so too have fraudsters needed to make adjustments just to continue their life of crime.
Given that the nature of fraud activities has been evolving during the crisis, not all of the changes are for the worse. In some cases, fraudsters have left themselves exposed by not mirroring consumers’ activities; and in other areas risk management providers, card networks, banks and others have modified how they operate in order to better detect fraudulent activities.
Beyond the transition of many businesses having staff work remotely, probably the biggest change had to come in the form of a new fraud opportunity — government stimulus packages. In the case of the U.S., it was the $2 trillion CARES Act. This legislation included $350 billion in PPP loans for small businesses, $300 billion in direct individual checks and $250 in supplemental unemployment insurance.