Stories about fraud and scams appear to be quite popular these days. Hulu’s The Dropout dramatizes the story of Elizabeth Holmes and the creation of fraudulent blood-testing start-up Theranos, while Netflix’s Inventing Anna tells the story of Anna “Delvey” Sorokin and her attempts to scam New York socialites and investors. While these dramatized stories of fraud committed against investors and high society entertain the public, the instances of real-life fraud are increasing dramatically. With society and individuals moving toward everything digital, as we recently detailed in “Digital First…and Throughout,” the opportunities for digital-based scams are increasing.
The growth of online spending and digital payments, the necessity for digital communications, the spread of cryptocurrencies and NFTs and the beginnings of the metaverse all are creating opportunities for fraud, and criminals aren’t letting those opportunities pass. With the risks of fraud increasing and more money being lost to fraudulent schemes, individuals, financial institutions and online retail and service providers are and will continue to be footing a larger bill.