Fraud Schemes Continue to Rise
Frank Costa, President of NEXGEN Protections Services on Fraud Schemes:
Fraud remains a persistent problem that organizations continue to struggle with, including the U.S. Federal Trade Commission (FTC), one of the federal agencies tasked with addressing fraud schemes.
Below are some of the top fraud scams that affected individuals and organizations in 2024 and are likely to continue being a problem in 2025.
- Investment Scams
This scam tactic has been around for ages. Fraudsters often present themselves with seemingly lucrative business opportunities that promise regular returns—if you invest immediately. - Business Email Compromise (BEC)
BEC schemes have been around since email was first introduced and typically occur in one of two ways, according to Schlereth.
Fraudsters either spoof a legitimate email address or domain name, often adding an extra letter so the sender appears authentic at a quick glance. Alternatively, they may use social engineering to obtain an employee’s credentials and then log into the victim’s work email. CFOs and CEOs are particularly lucrative targets. - Check Fraud
What’s old is new again. Check fraud surged last year, especially after individuals posted videos on social media showing themselves writing bad checks, depositing them at ATMs, withdrawing cash before the check bounced, and sharing their behavior.
“Fraudulently altered checks can cause significant losses to financial institutions and disrupt bank operations,” the report states. “Due to the nationwide surge in check fraud targeting U.S. mail, the Financial Crimes Enforcement Network (FinCEN) issued an alert urging financial institutions to be vigilant in identifying and reporting such activity.” - Impersonation Fraud
In this scam, criminals claim victims are suspects in financial crimes and threaten arrest or violence unless they pay the criminals. Additionally, fraudsters are impersonating customer service and tech support providers, often targeting individuals over 60 by phone. They claim that the victim’s computer has been compromised and needs immediate repair.
Source:
Gates, M. (February 1, 2025). Trend Alert: 4 Fraud Schemes to Watch in 2025. Security Management Magazine.
Executive Security Protection: Risks, Extremist Influencers, Shifting Tactics
Frank Costa, President of NEXGEN Protection Services on Security Protection:
Concerns about executive safety remain high. Not only was UnitedHealthcare CEO Brian Thompson tragically killed in December 2024, but there have also been multiple other incidents involving threats against business executives. Additionally, social media influencers and other sources have incited calls for similar attacks.
High-level executives without an executive security protection (EP) team are increasingly vulnerable to becoming targets.
The heightened emotional climate surrounding politics and public figures has made executive protection more challenging—and more essential. Politically motivated threats were notably higher in 2024. More than 50 members of Congress were victims of swatting attacks, and 700 members had faced threats the previous month. (Many threats were not publicly reported, so they are not included in TorchStone’s official threat count.)
Tactics are also evolving. Threat incidents are now categorized as verbal or written threats, harassment, stalking, physical attacks, and other crimes, which may include financially motivated offenses such as robberies, home invasions, and property crimes.
Source:
Gates, M. (February 5, 2025). EP Trends: Residential Risks, Extremist Influencers, Shifting Tactics. Security Management Magazine.
Ways to Boost Fraud Detection with Video Surveillance & Analytics
Frank Costa, President of NEXGEN Protections Services on Fraud Detection:
Fraud costs the financial sector billions of dollars each year. It’s a persistent challenge for banks globally, made more complex by increasingly sophisticated fraud tactics and methods.
To stay ahead of fraud, financial institutions must leverage every available tool to protect their customers and assets. One such tool is video surveillance and analytics. By integrating video technology with fraud detection systems, banks can gain real-time insights, spot patterns, and take a proactive approach to security. This not only helps detect fraud but also prevents it from escalating.
- Real-Time Fraud Alerts
Fraud detection systems generate a massive amount of data, but not every alert indicates a genuine threat. Video surveillance adds a critical visual layer, helping differentiate between legitimate fraud and false alarms. - License Plate Recognition
Drive-up ATMs and tellers face unique security challenges, especially in suburban and rural areas. License Plate Recognition (LPR) technology, integrated with video systems, offers a powerful way to identify vehicles linked to fraudulent activities. This information can be used to flag repeat offenders or known fraudsters. - Behavioral Analytics
ATM skimming is one of the most persistent threats to banks. Video surveillance equipped with behavioral analytics can identify suspicious patterns, such as individuals loitering near ATMs without conducting transactions or using multiple cards in quick succession. - Integrated Surveillance
ATM jackpotting—where criminals manipulate ATMs to dispense large amounts of cash—is a growing global issue. Combining video surveillance with physical sensors offers an effective defense. Cameras can detect unusual activity, like tampering, suspicious vehicles parked near ATMs, or vehicles with no license plates, and trigger real-time alerts. - Loitering Detection
Ensuring customer safety, especially at ATMs after hours, is a top priority for banks. Video surveillance with loitering detection analytics can identify individuals lingering near ATMs for extended periods, enabling timely intervention. - Video Storage with Hybrid Solutions
Storing surveillance footage for extended periods can be expensive. Hybrid storage solutions, which combine on-premises and cloud-based video storage, offer a practical alternative. Banks can securely store critical footage without the need for large-scale on-site infrastructure. - Camera-to-Cloud Solutions for Remote Monitoring
In some areas, installing on-site recorders can be impractical due to space or connectivity issues. Camera-to-cloud solutions address this by streaming video directly to the cloud. This eliminates the need for on-site hardware while maintaining full surveillance capabilities. - Disaster Preparedness for Video Data
Natural disasters pose a significant challenge to video surveillance systems. To mitigate this risk, banks should ensure that critical footage is preserved, even when on-site systems are compromised. Centralized evidence archiving allows banks to offload important video data to secure locations before a disaster strikes.
Transforming Fraud Prevention with Video Analytics
Video surveillance and analytics are revolutionizing fraud prevention, equipping banks with powerful tools to detect threats in real-time, enhance customer safety, and streamline security operations. From preventing ATM skimming and jackpotting to addressing loitering and improving evidence management, integrating video technology with existing systems strengthens banks’ ability to combat financial crime.
Source:
Corral, J. (February 5, 2025). 8 Ways to Boost Fraud Detection with Video Surveillance and Analytics. Security Management Magazine.
