Examining a Company's Authenticity in 2025: A Detailed Walkthrough
In the digital age, the threat of fraudulent activities has become a significant concern for businesses and individuals alike. The year 2024 saw a substantial increase in reported losses due to various scams, with total losses reaching over $6 billion, more than five times the amount reported in 2020.
Impostor scams topped the list, with total losses reaching $2.95 billion. Businesses and job opportunity scams followed closely, causing a staggering $750.6 million in losses. One of the most impersonated organizations was the Publishers Clearing House, as reported to the BBB Scam Tracker in 2024. Investment scams accounted for the largest portion of losses, totalling $5.7 billion.
To combat these rising scams, businesses are urged to adopt advanced, multi-layered fraud prevention strategies. These strategies should harness AI and behavioural analytics alongside traditional security measures. Key steps include implementing AI-driven identity verification, transaction monitoring, device fingerprinting, deepfake detection, and multi-factor authentication adapted to risk levels. Continuous fraud risk assessments and employee education on emerging scam tactics are also critical.
Advanced identity verification is crucial, using biometrics such as facial recognition and voice analysis, and behavioural analysis. Risk-based authentication that escalates security measures based on factors like device, location, and behaviour is another essential protective measure. Deepfake detection technology is vital to prevent AI-generated identity fraud.
Employee training is essential to recognise phishing and social engineering attempts, particularly in sensitive areas like HR and payroll. Secure systems that encrypt data and use internal monitoring to reduce exposure of sensitive information via email or insecure channels are also crucial. Establishing a fraud risk management culture from leadership down to ensure accountability and awareness at all levels is also important.
Collaborative efforts between businesses, law enforcement, and technology providers enhance defence capabilities against sophisticated AI-driven and synthetic identity scams. By integrating these advanced technologies and organisational practices, businesses can stay ahead of evolving scams in 2025 and significantly reduce fraud losses, which have been rising sharply in recent years.
Businesses should also be aware of supply chain fraud risks such as counterfeit goods, bribery, fake invoicing, and ransomware attacks. Integrating fraud prevention protocols throughout procurement and finance processes is essential to combat these threats.
In addition to these measures, verifying companies is crucial. To verify an online company, examine the website's security, legal pages, and company info; then, cross-check its registration, reviews, and online presence across social media and professional platforms. In the USA, looking up the company through EDGAR (SEC) for public companies or checking state business registries via the SBA's directory can help verify a company. For industry associations, look for badges or certifications and then verify them directly on the organisation's website.
In 2024, consumers reported over $12.5 billion in fraud losses, a 25% increase from the previous year. Scammers often impersonate postal or delivery services like UPS, DHL, or national post offices to trick victims through smishing. A deepfake video featuring an AI-generated Elon Musk promoting a fake cryptocurrency investment scheme duped an 82-year-old retiree into depositing $690,000. In Q1 2024, Statista identified over 963,000 unique phishing sites globally. The FTC noted that review manipulation played a role in thousands of e-commerce fraud cases.
By staying vigilant and adopting the latest fraud prevention strategies, businesses can protect themselves and their customers from the growing threat of scams in 2025.
Investing in advanced fraud prevention strategies, such as implementing AI-driven identity verification, transaction monitoring, and multi-factor authentication, is essential for businesses to combat a significant rise in scams, which resulted in total losses exceeding $6 billion in 2024 and are expected to continue in 2025. It's important to verify companies online by examining their website's security, legal pages, and company info, and cross-checking their registration, reviews, and online presence across various platforms to stay protected from fraud.
