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Fraud prevention is no longer just about safeguarding financial transactions—it's a complex battlefield where technology, human expertise, and emotional intelligence converge. In a recent episode of GRC Chat, we had the pleasure of hosting Iramar Brayner, a fraud prevention and risk management professional with over 17 years of experience. Currently leading fraud prevention at G2A, the world’s largest digital entertainment platform with over 35 million users, Iramar shared his deep insights into the evolving landscape of fraud mitigation. Read on to learn about the challenges industries face, the role of AI, and actionable strategies to tackle fraud.

Fraud Trends: The Shape-Shifters of Scam Culture

The landscape of Fraud Trends is constantly evolving, with scammers adapting their tactics to exploit new vulnerabilities. In recent years, the rise of first party fraud has challenged traditional fraud prevention methods. Unlike classic digital fraud, where criminals use stolen credentials, first party fraud involves legitimate customers making purchases and later denying the transaction. This trend is especially prominent during periods of economic hardship, when financial stress can push individuals toward unethical choices.

Research shows that first party fraud is now more widespread and difficult to detect. Since the transaction appears genuine at first, distinguishing between honest mistakes and intentional deception becomes a complex task for fraud prevention teams. This type of fraud is particularly challenging for industries like digital entertainment, where the average order value is typically low. Fraudsters often use these platforms as a testing ground, making small purchases with stolen cards to see if they work. If successful, they escalate their attacks, targeting higher-value goods such as electronics or airline tickets.

The sophistication of digital fraud has also increased with the integration of artificial intelligence. Tools like Fraud GPT and Worm GPT enable fraudsters to automate attacks, craft convincing phishing messages, and bypass security systems more effectively than ever before. Studies indicate that consumer losses to fraud in the United States soared to $12.5 billion in 2024, reflecting a 25% increase from the previous year. This surge highlights the urgent need for advanced fraud detection and prevention strategies across all sectors, including ride hailing and banking fraud.

Another major trend is the rise of social engineering scams. These attacks prey on human emotion and trust. Fraudsters impersonate bank representatives or customer service agents, contacting victims through social media, phone calls, or emails. They promise exclusive deals—like hard-to-get concert tickets—or warn of suspicious activity on a bank account. In moments of excitement or fear, consumers may share sensitive information, only to later discover unauthorized charges on their accounts. The emotional manipulation at the heart of social engineering makes it a powerful tool for scammers, especially when economic uncertainty leaves people feeling vulnerable.

The digital entertainment industry, with its low-value transactions, is particularly attractive to fraudsters running “test runs.” By making small, seemingly harmless purchases, scammers can verify the validity of stolen payment information without drawing attention. If these attempts go unnoticed, they quickly move on to more lucrative targets. This pattern of starting small and escalating is a hallmark of modern digital fraud.

Economic and emotional vulnerability are key factors driving the current wave of fraud. When times are tough financially, people are more susceptible to scams that promise quick solutions or exclusive opportunities. Similarly, emotionally charged situations—like the announcement of a popular band’s reunion tour—can cloud judgment and make consumers easy targets for fraudsters. The combination of advanced technology, economic stress, and emotional manipulation has created a complex and ever-changing fraud landscape that demands constant vigilance and adaptation.

Fraud Strategies: Why Real-Time Action Beats Red Tape

The world of fraud prevention is changing fast. Traditional manual reviews, once the backbone of fraud strategies, are quickly becoming outdated. Today, speed is not just an advantage—it’s a necessity. Real-time detection is now the gold standard, especially in digital entertainment, where buyers expect instant answers. If a customer has to wait even a few hours for a fraud check, they are likely to abandon their purchase. This impatience is driving companies like G2A to overhaul their fraud prevention systems, moving away from slow, manual processes toward automated, real-time detection tools.

Research shows that real-time detection is essential for meeting modern consumer expectations and staying ahead of increasingly sophisticated scams. Fraudsters are leveraging advanced technologies, including AI-powered tools, to exploit even the smallest delays or gaps in a company’s defenses. When fraud prevention lags behind, the losses can be significant—not just in revenue, but in customer trust and brand reputation.

One of the biggest challenges across industries is the issue of siloed teams. In many organizations, fraud prevention, KYC (Know Your Customer), onboarding, and AML (Anti-Money Laundering) operate as separate units. This fragmented approach creates gaps that fraudsters can exploit. For example, if the onboarding team approves a new account without real-time input from the fraud prevention team, a fraudulent account might slip through. Similarly, if AML checks are not integrated with real-time detection tools, suspicious activities may go unnoticed until it’s too late.

A holistic fraud management strategy is vital. This means breaking down silos and encouraging collaboration between teams. When fraud prevention, KYC, and AML work together—supported by advanced fraud detection tools—organizations can respond to threats as they happen, not after the fact. Studies indicate that combining human expertise with AI-driven systems leads to better outcomes, as technology can flag suspicious patterns instantly while experts make nuanced decisions on complex cases.

The economic climate also plays a significant role in shaping fraud strategies. During periods of financial stress, people are more vulnerable to scams. Fraudsters are quick to seize on these vulnerabilities, using emotional triggers and timely events—like a popular band announcing a reunion tour—to lure victims. In these scenarios, real-time detection is crucial. If a system can immediately flag unusual buying patterns or suspicious links, it can prevent losses before they occur.

Digital entertainment platforms like G2A have recognized these realities. By shifting to real-time fraud detection, they not only improve customer experience but also reduce the window of opportunity for fraudsters. Other industries are starting to follow suit, realizing that manual reviews and disconnected teams are no match for today’s fast-moving threats. The move toward holistic fraud management—where technology and teamwork go hand in hand—is becoming the new benchmark for effective fraud prevention.

AI Fraud: Friend, Foe, or Just a Buzzword?

In today’s digital landscape, the conversation around AI Fraud is everywhere. It’s easy to see why—artificial intelligence is no longer just a futuristic concept. It’s actively shaping the way both fraudsters and defenders operate. But is AI a friend, a foe, or simply a buzzword that gets thrown around in every discussion about Fraud Detection and Fraud Prevention?

Let’s start with the darker side. AI has become a powerful tool for scammers. With technologies like deepfakes and AI-generated phishing emails, fraudsters can now mimic voices, faces, and writing styles with alarming accuracy. This means scams are not only more convincing, but they can also be launched at a much larger scale than ever before. Research shows that AI-driven tools such as Fraud GPT and Worm GPT are making it easier for criminals to automate attacks, making scams harder to spot and defend against. The result? A surge in digital fraud, with reported consumer losses in the US reaching $12.5 billion in 2024—a staggering 25% increase over the previous year.

But AI isn’t just empowering the bad actors. On the other side, organizations are using AI to fight back. Advanced algorithms can sift through massive amounts of data, identifying suspicious patterns and behaviors that would be nearly impossible for a human to catch in real time. This is where AI Expertise comes into play. Companies like G2A are leveraging AI not as a replacement for human analysts, but as a collaborator. AI can automate repetitive tasks, flag potential threats, and provide rapid insights, freeing up human experts to focus on the nuances that machines can’t grasp.

Here’s the thing: no matter how sophisticated an AI system becomes, it still lacks the emotional intelligence and intuition that humans bring to the table. Fraud, at its core, often involves manipulating trust and exploiting vulnerabilities that are deeply personal. A machine can detect unusual activity, but it can’t always sense when something just “feels off.” That’s why G2A’s approach is to combine the speed and efficiency of AI with the empathy and judgment of human investigators. This hybrid model—AI plus human—has proven to be more effective than relying on either side alone. Studies indicate that real-time fraud detection systems, powered by both AI and human oversight, are essential for staying ahead of evolving threats.

The evolving fraud landscape demands a holistic approach. As fraudsters use AI to scale up attacks and create more convincing deceptions, defenders must also adapt. It’s not about choosing between AI or human expertise, but about blending the strengths of both. Automation can handle the heavy lifting, but human intuition remains crucial for interpreting context and understanding the emotional side of fraud. This synergy is what sets leading fraud prevention strategies apart in a world where the line between friend and foe is constantly shifting.

Connecting the Dots: Why Fraud Prevention is Everyone’s Job

Fraudsters today are more cunning than ever, and their tactics evolve as quickly as the technology designed to stop them. The modern fraud landscape is shaped by a mix of economic pressures, advanced digital tools, and, perhaps most importantly, the vulnerabilities of everyday consumers. As research shows, account takeover and synthetic identity fraud are among the fastest-growing threats, costing billions each year. But what makes these attacks so effective? It often comes down to the cracks in our systems—cracks that fraudsters are all too eager to exploit.

One of the most significant cracks is consumer vulnerability. People are often targeted during emotional moments—when buying a concert ticket, making a last-minute purchase, or responding to what seems like an urgent request. In these moments, emotional behavior can override caution, making it easier for fraudsters to slip through. This is why understanding consumer vulnerability is central to any effective fraud prevention strategy. It’s not just about technology; it’s about people and their behaviors.

Yet, even the best technology can fall short if organizations remain siloed. Traditionally, companies have divided fraud prevention responsibilities among separate teams: KYC (Know Your Customer) for onboarding and document checks, fraud prevention teams for monitoring transactions, and AML (Anti-Money Laundering) teams for tracking suspicious financial activity. While each team plays a vital role, working in isolation can leave gaps that sophisticated fraudsters are quick to find. Studies indicate that a holistic fraud management approach—where these teams collaborate and share insights—leads to sharper, more agile responses.

This is the direction many leading organizations are now taking. By mapping the entire fraud journey, which mirrors the customer journey, companies can spot weak points before they become major breaches. When fraud prevention, KYC, and AML teams unite, they create a connected defense that is both consumer-centric and adaptive. This holistic fraud management strategy not only improves security but also enhances the overall customer experience, reducing friction and building trust.

But what if we went even further? Imagine a world where high-risk transactions—like buying concert tickets—were only available to verified fans, much like exclusive club memberships. Would this creative approach make scams less common? It’s an idea worth exploring, especially as fraudsters continue to innovate. Creative mitigation strategies, paired with real-time detection systems and cross-team coordination, could be the next frontier in fraud prevention.

Ultimately, the fight against fraud is not just the job of a single team or department. It’s a collective responsibility that spans the entire organization—and even extends to consumers themselves. As fraud tactics become more sophisticated, only a holistic, coordinated approach can keep pace. By connecting the dots between technology, teamwork, and consumer understanding, the industry can build defenses that are as dynamic and resilient as the threats they face.

TL;DR: Modern digital fraud is a shape-shifting beast: emotional, opportunistic, and increasingly AI-driven. G2A’s experience shows that blending high-speed tech with human wisdom—and understanding the social context—is the future of fraud prevention.

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