As online fraud and data theft increase, senior citizens limited by age-related issues and lack of technological knowledge could be sitting ducks for such attacks. A study by Forrester Consulting, commissioned by Experian, a leading global information services provider, shows that 64 per cent of respondents experienced increased losses in fraud incidents over the past year, while 67 per cent grappled to keep pace with evolving threats. This spike in fraud shows senior citizens’ increased risks, given they are the most vulnerable among other age groups.

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Causes Of Fraud

The study attributed the cause of increased fraud to ongoing consumer financial strain, data breaches exposing private information to the dark web, and publicly accessible Generative Artificial Intelligence (AI) enabling criminals to exploit the loopholes and commit fraud with increased losses. 

It noted that attacks like “synthetic identity attacks,” which blend actual and fraudulent information to create new identities, are becoming more frequent, mainly in the financial services industry. Attacks involving account takeover and identity theft come right after this. Friendly fraud attacks, in which consumers contest valid charges, have also increased for people in the E-commerce space, closely followed by identity fraud.

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Strategies To Prevent Fraud

The study noted that effective use of AI and machine learning (ML) technologies can help prevent fraud. It said these cutting-edge solutions allow rapid analysis of extensive datasets, promptly identify irregularities, and decode fraudulent patterns. This approach will safeguard businesses and is essential in protecting the financial ecosystems.

According to the study, enhancing ML models’ comprehension and simplification of the jargonised language ranks highest among fraud-related priorities, demonstrating the growing significance of ML in fraud prevention. The study said that transparent machine learning methods facilitate human supervision, enabling the detection of possible fraud threats.

Commenting on the report, Manish Jain, Country Managing Director of Experian India, said in a press release on Tuesday, “As technology advances, the landscape of fraud undergoes shifts, creating new complexities. The rise of advanced technology transforms fraud dynamics, challenging established securities and breaking down barriers. Addressing this challenge requires a potent solution–AI. Unlike traditional methods, AI excels in swift adaptation and real-time analysis, actively defending against ever-changing threats.”