2023 Year in Review: A Look Back and Ahead

Welcome to the December 2023 edition of our newsletter!  In this issue, we’ll examine the trends that defined the year in fraud, and look ahead to what 2024 may bring.

The More Things Change: Top Fraud Trends of 2023

While 2023 was notable for the increase in personal fraud – from romance scams to cryptocurrency fraud and “pig butchering” – a nasty combination of the two – corporate fraud was also a growing concern, as regulators pursued aggressive strategies to police “non-bank” financial institutions, alleging that they misled investors or sold unregistered securities.  The proliferation of alternative financial technologies was always destined to bring with it bad actors seeking to exploit new technologies, and regulators have worked to both draft and refine regulations and to enforce those already on the books.  Even in the face of new and supposedly innovative technology, tried and true methods of cautious vetting remain the best defense against loss or unwitting culpability,

The Road Ahead: Trends to Watch in 2024

As interest rates have risen within the past 18 months, certain aspects of merger and acquisition activity have been curtailed or delayed.  As interest rates normalize to a lower level, as is expected, deal-making activity should pick up, which will require thorough research on a potential acquisition target and its principals.

Another rapidly evolving trend is the rise of artificial intelligence, both to perpetrate frauds and to help detect them.   Machine learning tools do not have ethical centers to guide them toward socially and legally acceptable behavior – making them easy tools for bad actors seeking to gain information via more sophisticated social engineering scams, or phony websites claiming to be tech or customer support chatbots which then solicit sensitive information.  Whether trying to prevent traditional fraud or its rapidly changing offspring, caution and diligence should be the guide for the year ahead,