Florida ranks as the No. 1 state for financial fraud perpetrated on consumers, and Miami stands as the No. 1 tourist city for fraud, according to a study from Feedzai, a financial risk management firm.
In particular, Florida heads the list for in-store debit-card fraud, the report said.
“The number of in-store card transactions showed no significant change [from 2019 to 2021], making the massive spike in card-present fraud attacks particularly noteworthy,” the study said.
“This is not related to gas-pump purchases, but rather in-store and often at 24-hour convenience stores. This shows that EMV [chip] technology is helping to curb fraud, but fraudsters are gaining access to PIN codes.”
Looking at fraud more broadly, the study, based on an analysis of 18 billion global banking transactions last year, found that online fraud more than tripled (up 233%) in 2021 compared with 2019.
“The shift from in-person transactions to online transactions, along with the plethora of devices and accounts each person has, creates vast amounts of data points,” said Jaime Ferreira, vice president of global data science at Feedzai.
“From a fraudster’s point of view, this is the best-case scenario. It’s easier for them to hide in all that noise.”
Digital entertainment fraud jumped 794% from 2019 through 2021. “Living the digital lifestyle adds a world of convenience, but also provides a low-risk, high-reward environment for fraudsters,” Ferreira said.
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“It’s the perfect place for fraudsters to hide – in a massive number of low-dollar-amount transactions. The more transactions, the more opportunities for them to test stolen cards or other scams.”
After Florida, the riskiest states are New York, Maryland and Nevada, the study said.
The safest states for consumers are Nebraska, Iowa, Wyoming, Idaho and North Dakota, in that order, the study said.
As for the riskiest cities, after Miami, the ranking lists Los Angeles, San Francisco, New York City, Orlando and Las Vegas
The study includes a top five for the types of fraud attacks.
Account takeover. That’s when criminals steal ownership of online accounts using stolen passwords and usernames. Social engineering scams. These scams are designed to take advantage of a person’s trust to get money directly or draw confidential information that can be used for later fraud. Purchase scams. That’s when criminals trick consumers into paying for goods and services that won’t be coming. Impersonation scams. Often this will be a phone caller telling you he/she is from a government agency or service provider and asking for personal financial information.Smishing scams. Criminals use text messages to try to elicit your personal financial information.The study offers five pieces of advice for how consumers can prevent social engineering attacks.
“Don’t open or click on suspicious links via email or text. Fraudsters can’t trick you if you don’t click on their links.“Update devices. Install and regularly update anti-malware software. When your computer or phone prompts you to install updates, do it.“Protect your privacy. Don’t provide personal information about yourself or your employer, unless you are 100% sure the person you’re interacting with should have access to that information.“Use multifactor authentication. Do not reveal personal or financial information in an email, and do not respond to email solicitations for this information. This includes clicking on links sent via email.“Don’t believe the hype. If an offer, prize, or opportunity is too good to be true, it isn’t true. Don’t fall for tempting out-of-this-world offers.”