For business owners, shifting to online platforms often comes with a host of risks no matter the industry you serve. Anyone can be a target!
And now, new data from recent research by Iovation reveal that insurance is the next favorite e-commerce fraud target. Cybercriminals are increasingly eyeing firms that offer insurance services as web-based payments for the sector surge in the United States.
Iovation released these findings after analyzing new trends in cybercrime. The year-long scrutiny looked into 10 billion web-based transactions and found around 5 percent of those risky. Of all the payments categorized as risky, insurance payments were almost double the digit at 9 percent.
In the report, the researcher mentioned that as more United States customers accept and embrace the practice of making insurance payments online, fraudsters will find a way to take advantage of this lucrative business.
Insurance apps linked to increased risks
The increasing adoption of insurance apps among millennials is linked to the increase in the risk of fraud in insurance payments.
Here’s separate yearly research to prove that;
Mintel is an international business intelligence. In its 2017 study, less than 10 percent of US-based insurance consumers admitted to using the mobile apps provided by their medical insurance companies.
In 2018, the digit grew almost threefold to 25 percent. The researcher also noted that this year, 25 percent of young generation customers are eager to go through a web-based insurance request process while an entire 30 percent of the same group are eager to use mobile apps for their insurance coverage solutions.
Mobile device usage rates are highest among millennials which explains why they are quicker to accept insurance apps than the older generation.
Whether the next money heist will target the online insurance sector or not remains unknown to consumers and merchants.
But such reports should ring loud bells to the industry. Companies should get their houses ready for an approaching tornado that can threaten to bring down a whole brand.