Content fraud levels that spiked at the start of the COVID-19 pandemic aren't dropping off as the world recovers. In fact, they're getting worse, according to a report released today by fraud prevention company Sift.
The company analyzed content that it blocked on over 34,000 websites, including forums, marketplaces, and social media channels. It found that while fraudulent content spiked by 77% in Q1 last year, just as the pandemic took hold, it did not revert this quarter. Year-on-year figures for Q1 2021 show the average rate of fraudulent content it blocked rose another 18%.
The continuing rise in online fraud stems in part from changing commerce patterns as transactions move online, the company said in its report. This has accelerated as retailers and other businesses find ways to survive during the pandemic.
Sift, which also polled adults nationwide in May, found that 59.4% of blocked posts attempted to scam users, while 22.2% were marked “irrelevant.” Almost one in five (18.3%) posts were labeled toxic, meaning they harassed other users and often contained hate speech.
User-generated content has become a go-to method for defrauding consumers, the company warned, as criminals use various online channels to post scam content. The fraud ranges from romance and employment scams to fake marketplace listings and artificially boosted reviews.
RELATED RESOURCE
Social media channels were the most popular avenue for content fraud, as 61% of respondents ranked it highly. Next came online classifieds at 28%, dating sites at 24%, marketplaces at 21%, and crowdfunding sites at 15%. These figures also include misinformation, such as anti-vaccination conspiracy theories.
Over a quarter of respondents said they have run across fraudulent content at least weekly. The types of fraudulent content encountered most frequently were spam and scam at around 50% each. Misinformation was a close third at 43%.
-
Layoffs loom for underskilled tech workers and poor performersNews Tech hiring managers expect to make layoffs in the coming months, with roles ripe for automation and workers with outdated skills the most likely to be cut.
-
Executives think AI can supercharge cybersecurity teams – analysts aren’t convincedNews As organizations adopt AI, frontline cybersecurity workers are worried AI will reduce job security and increase their manual workload
-
FBI warns scammers are using cryptocurrency ATMs to siphon cashNews Criminals will stay on phone with victims as they make payments, says advisory
-
Hackers fake DocuSign and offer fraudulent signing methodsNews Criminals impersonate the e-signing company to steal credentials
-
Account takeovers rise nearly threefold during pandemicNews Financial services hit hardest by account hijackers, says Sift report
-
Cyber criminals leak one million credit cards on the dark webNews Among the stolen hoard are customer details from US and Canadian banks
-
SentiLink raises $70 million for its identity verification platformNews SentiLink’s ID Theft Score helps businesses combat synthetic fraud
-
What is DMARC and how can it improve your email security?In-depth Protect your customers and brand rep with this email authentication protocol for domain spoofing
-
FTC warns of rising cryptocurrency fraudNews Marked rise in cryptocurrency losses began just as pandemic took hold
-
E-commerce fraud to surpass $20 billion this yearNews Research finds merchants need to do more to implement fraud prevention
