Fraud is the act of gaining a dishonest advantage, often financial, over another person. It is a common and serious crime, with victims experiencing significant harm as a result of fraud and scams. In the past year alone, there have been 3.4 million incidents of fraud or forgery in England and Wales and prosecutors are dealing with almost half of these cases.
Frauders are constantly evolving their tactics and methods. It’s important to stay ahead of them, so we take a holistic approach to fighting fraud. By using predictive analytics and Artificial Intelligence, we are able to identify patterns and trends that could indicate fraud.
There are many different types of fraud, but most of them share certain characteristics. They involve deception, fabrication or impersonation and are committed to achieve a personal gain. They also take advantage of information asymmetry, meaning the fraudster knows something that the intended victim does not.
Criminals commit fraud for all sorts of reasons – from money or power to drugs and gambling addictions. According to criminologist Donald R. Cressey, in order for fraud to occur, three conditions must be present; the person is motivated by a need or pressure; they have an opportunity to commit the fraud and they are able to rationalize it.
Thankfully, consumers have become much savvier and more aware of how to spot the red flags of fraud. They’ve turned to educational campaigns, community outreach and even true crime shows to arm themselves with knowledge and protection. But this doesn’t mean fraudsters are out of luck; it just means that businesses need to be just as agile and inventive with their prevention strategies.
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