Swipe Left On Fraud
It’s Valentine’s Day, and those who don’t have a hot date for the holiday might turn to online dating to snag a new beau. In fact, according to a Wandera study, dating apps see a huge surge in use mid-February, with 26 percent more people using these apps in the three weeks before Valentine’s Day than during the previous period. This explosion can also be attributed to the industry’s movement towards mobile devices, the convenience that it provides, generational changes and advances in technology on all fronts.
While dating sites provide an opportunity to screen and engage with multiple personalities, it is also creating a perfect environment for fraudsters to exploit. Let’s look at the top five reasons why this evergreen market is attracting fraud.
- Rise in Revenue: Fraud follows the money. The rise in users and, consequently, revenue has fraud following suit.
- The Rise in Users: Having large numbers of users and an even larger amount of data that online dating companies have to sift through, fraudsters can easily blend into the user base and are very skilled at making themselves look like a legitimate user making it easier to go about using fraud tactics to commit fraudulent actions.
- Changing Dating Landscape: Online dating is constantly changing. From swiping, to chat, to video...it is an ever-evolving landscape and one that can lead to changes in fraud tactics.
- User Experience: The world wants speed and a great user experience and this is especially true in the world of online dating. This comes at a cost though. Optimal user experience can mean giving less data points for fraud prevention systems and/or personnel to decision with.
- The Power of Emotion: The old adage “love makes us do stupid things” is completely true when applied to online dating -- fraudsters know that with some tactics, they can use the digital but emotional connection that online dating has and profit from it.
While these online services might be in love with the flurry of activity and sales during this time, it’s essential to have a scalable fraud prevention plan in place to stop criminals from trying to scam the system. Taking a proactive approach allows the sites and their corresponding platforms to protect not only their customer base, but also their brand.
Specific online services such as personal ads, dating sites, professional services, and background checks are hotbeds for fraudsters trying to steal information to use either for schemes like account takeover or to sell to other criminals using personal data for other online crime. Sites that gather and hold personal information should look out for two concerns when it comes to fraud on their platforms: first, they must ensure that the payment received for their services or membership is valid, and, second, they must confirm that the person providing the information is who they say they are.
A recent report from Kount’s Mobile Payments & Fraud: 2017 Report found that the biggest obstacle for mobile adoption is mitigating the risk of fraud, consumer security and streamline the efficiency of payments.
To combat potential fraudulent activity, businesses should look for technology, like Kount’s artificial intelligence-based solutions, that reviews hundreds of electronic data signals to provide deep insights into each transaction and login, dramatically reducing fraud and the number of fraudsters who get onto your network, stopping these fraudsters in their tracks. Not only will a comprehensive fraud prevention service help stop fraud while lowering manual reviews and chargebacks, but, the right service will also help increase overall sales and revenue.
During this season of love, keep your customers safe from the scammers that prey on unsuspecting victims who are just trying to find their soulmates, while protecting your business and maximizing sales.
Learn more about the state of mobile payments and fraud in the online dating space in the "Mobile Payments & Fraud: 2017 Report".