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EverC, a top Israeli technologies corporation specializing in AI-pushed merchant and market danger intelligence, has unveiled its yearly traits report, which sheds light-weight on the most common worldwide transaction fraud trends in 2022.
The report, titled “The 2023 Risk Landscape: A Report on Trends in Illicit E-commerce Exercise,” highlights the troubles faced by many gamers in the payments ecosystem, which include banking institutions, acquirers, payment providers, and on the internet marketplaces.
Best threat: transaction laundering
Transaction laundering is a method of “digital cash laundering,” in which criminals use reputable organizations to procedure digital payments for unlawful routines. This tends to make it challenging to monitor the funds and identify the criminals included.
In accordance to EverC’s conclusions, transaction laundering emerged as the most widespread system used for illicit payment activity, accounting for a staggering 22% of all fraudulent transactions in 2022. On top of that, the report reveals that transaction laundering witnessed the major increase in the very first quarter of 2023, surpassing all other kinds of fraud by a substantial margin with a staggering 39% rise.
The prevalence of transaction laundering as a favored approach for facilitating monetary crimes is a matter of issue owing to its large-ranging destructive impression. The anonymity provided by transaction laundering permits criminals to build fraud rings globally, some of which have been uncovered to be connected to human trafficking networks or identified to give assistance to terrorist organizations.
Medicine, gambling, pirating, porn, and makeup
The report also reveals that pharmaceutical fraud, mental property rights infringement, and gambling tied as the next most widespread forms of illicit e-commerce exercise, every accounting for 15% of transactions.
Position somewhat beneath these were the sale of illegal substances at 12%, and adult articles at 9%.
The sale of counterfeit merchandise also represents a major obstacle in the on-line marketplace. In 2022, EverC properly eliminated more than 40,000 counterfeit products from its husband or wife marketplaces, concentrating on faux cosmetics. Between these solutions, perfumes accounted for 63% of the seizures, followed by skincare (16%) and makeup (15%), with a put together worth exceeding $2 million.
Can AI take care of it?
Addressing these pervasive fraud developments, EverC is creating an state-of-the-art AI-pushed danger administration remedy created to immediately detect significant-risk merchants, transaction laundering, and illicit products. Additionally, the platform provides ongoing monitoring to recognize evolving pitfalls, equipping threat and compliance groups with actionable intelligence for making informed decisions based on evidence.