Recent data from the Federal Trade Commission shows consumer-reported fraud losses climbed a shocking 44% from $6.1 billion in 2021 to $8.8 billion in 2022.
And this could be another record-breaking year. At $6.4 billion as of September 30, 2023 has already exceeded the reported loss amount for 2021 by 5%.
Further analysis reveals that, although young adults (ages 20 to 29) are scammed more often, those aged 70 to 79 suffer more substantial losses when they are.
Small businesses, often lacking the robust cybersecurity of larger counterparts, are prime targets, with 31% falling victim to check fraud in the past year, according to Mitek.
Understanding the threats
In 2022 and 2023, fraud relating to investments and business and job opportunities were among the most frequently reported.
The 2023 AFP® Payments Fraud and Control Survey notes a slight increase in business email compromise (BEC) attacks, rising from 68% in 2021 to 71% in 2022. Despite this uptick, the number of reports remains at its lowest level since 2016.
For property managers, who handle significant financial transactions and sensitive client data, the threat of fraud is particularly alarming. How can property managers fortify their businesses against these evolving threats?
A well-educated team is your first line of defense. Implement cybercrime prevention best practices, such as requiring dual approval for payouts and training staff to detect and prevent fraud.
Consider prioritizing online rent collection through property management software to boost transactional security, transparency, and accuracy.
The best response to the growing risk of fraud is a proactive one!
More cybersecurity headlines
Officials report an increase in rental scams – PayProp
Beware of ‘title pirates’ wreaking havoc on closings – Realtor Magazine
Biden-Harris administration announces National Cybersecurity Strategy – The White House
