Question

Customer fraud cases that has emerged during COVID 19 pandemic. (list and description of the fraud cases) with real example cases to be quoted.

Answer 1

A new wave of payments fraud has emerged in the U.S., as millions of consumers have shifted their banking and purchasing activity to online channels since the COVID-19 outbreak forced mandatory stay-at-home orders. Most major businesses also shifted their employees from working at the office to working from home full-time during the pandemic.

The drastic changes in e-commerce and mobile banking created an entirely new target set for malicious actors to exploit weaknesses in remote corporate networks, merchant e-commerce sites and financial institutions dealing with massive increases in mobile banking transactions.

Earlier this month, the FBI warned of a heightened risk of cyber-attacks as more U.S. consumers embrace digital banking. The agency warned that malicious apps were being embedded inside third-party software, and banking trojans can appear to be legitimate login pages.

The agency noted that mobile banking use has increased as much as 50% during the COVID-19 lockdown period as millions of Americans have been forced to work from home and banks have in many cases closed lobby access to retail customers in favor of mobile banking, ATM and drive-thru.