As we approach the end of 2024, fraud examiners across the Pacific Northwest—and around the globe—have witnessed an unprecedented range of schemes targeting businesses, governments, and individuals alike. From sophisticated deepfake attacks to large-scale cryptocurrency heists, this year has shown that fraudsters continue to adapt and evolve, using emerging technologies and global events to their advantage. Below, we highlight some of the most prevalent fraud schemes of 2024, along with insights for preventing and detecting these threats in the future.
1. AI-Driven Social Engineering
What Happened:
The rapid advancement of generative AI tools in 2024 has made social engineering attacks more convincing and harder to detect. Fraudsters are using deepfake audio and video to impersonate executives or loved ones, tricking victims into disclosing sensitive information or authorizing fraudulent payments.
Key Tactics:
•Voice Phishing (Vishing): High-fidelity fake “CEO” calls to employees demanding urgent payments
•Synthetic Videos: Pretend Zoom calls with cloned C-suite executives “confirming” high-dollar wire transfers
•AI Chatbot Scams: Fraudsters employing AI-driven chat interfaces to build trust and solicit personal data
Prevention Tips:
•Implement multi-factor authentication (MFA) and strict internal controls for wire transfers
•Educate teams on red flags of urgent payment requests—especially if they come from unfamiliar channels
•Keep abreast of new AI detection tools and partner with IT teams to test them
2. Business Email Compromise (BEC) 2.0
What Happened:
While Business Email Compromise is not new, 2024 saw a more refined approach. Attackers spoof vendor emails with uncanny accuracy, factoring in details like typical invoice amounts, payment terms, and branding elements. This “BEC 2.0” tactic often bypasses older email security filters.
Key Tactics:
•Vendor Impersonation: Fraudsters send convincing invoices closely mirroring legitimate vendor details
•Account Takeovers: Compromised corporate email accounts used to place false purchase orders
•Phishing for Credentials: Employees tricked into disclosing login details via malicious links
Prevention Tips:
•Conduct routine vendor verification, especially for changes in banking details
•Establish a dual-approval process for large payments or new vendor setups
•Deploy real-time monitoring for suspicious logins or IP addresses
3. Cryptocurrency and NFT Scams
What Happened:
The crypto sphere remained a playground for scammers in 2024. Non-Fungible Tokens (NFTs) continued to pique consumer interest, but unscrupulous players launched “rug pull” schemes—attracting investors and then disappearing with funds. Meanwhile, crypto romance scams on social platforms soared, where con artists lured victims into fraudulent investments.
Key Tactics:
•Fake ICOs and Airdrops: Promises of free coins to drive traffic to malicious sites
•Discord Community Exploits: Hackers hijacking official NFT or crypto project channels to distribute malicious links
•Pump-and-Dump Schemes: Artificially inflating token values before selling en masse
Prevention Tips:
•Verify the legitimacy of any new crypto project or NFT collection before investing
•Look for established smart contract audits and transparent development teams
•Educate clients and employees on the warning signs of unrealistic investment returns
4. Pandemic Relief Fraud (Ongoing)
What Happened:
Despite a gradual phase-out of many COVID-19–era relief programs, criminals have still found ways to exploit government stimulus packages and small business loans well into 2024. Falsified applications, shell companies, and identity theft remain popular channels for siphoning funds.
Key Tactics:
•Synthetic Identities: Mixing real and fabricated personal data to pass identity checks
•Exaggerated Financial Statements: Overstating business operations to qualify for large relief grants
•Impersonating Government Agencies: Fraudsters contacting businesses to “collect payback” on supposed overdue loans
Prevention Tips:
•Strengthen KYC (Know Your Customer) procedures and verify all supporting documents
•Implement robust cross-matching systems to identify multiple loan applications under the same identity
•Train staff to recognize and report any suspicious loan inquiries
5. Health Care and Telemedicine Fraud
What Happened:
As telehealth expanded in 2024, so did health care fraud. Fake telemedicine providers offered bogus consultations, upcoded billing for non-existent treatments, or prescribed high-priced medications without medical necessity. Criminal rings also targeted older adults for personal data to bill insurers.
Key Tactics:
•Phantom Billing: Charging insurance providers for services never rendered
•Telehealth Scams: Fraudulent “online clinics” luring patients with cheap or free exams, then billing insurers for premium services
•Patient Brokering: Paying third parties to recruit Medicare or Medicaid beneficiaries into fraudulent schemes
Prevention Tips:
•Validate telemedicine providers’ credentials and watch for unusual spikes in patient volume
•Regularly review claims data for outliers, such as exceedingly high billing for certain procedures
•Encourage whistleblowers with clear, confidential reporting mechanisms
Conclusion
The fraud landscape in 2024 has been marked by sophisticated technology, evolving social engineering tactics, and continued exploitation of government programs. For anti-fraud professionals in the Pacific Northwest and beyond, staying vigilant means continuous education, robust internal controls, and a proactive approach to new threats.
As we gear up for 2025, remember the importance of sharing intelligence, collaborating with industry peers, and leveraging resources available through the ACFE. Our collective effort is crucial in the ongoing fight against fraud.
References
1.Association of Certified Fraud Examiners (ACFE). (2024). 2024 Report to the Nations: Global Study on Occupational Fraud and Abuse. Retrieved from
https://www.acfe.com/report-to-the-nations/2024
2.FBI Internet Crime Complaint Center (IC3). (2024). 2024 Internet Crime Report. Retrieved from
https://www.ic3.gov
3.Federal Trade Commission (FTC). (2024). Consumer Sentinel Network Data Book 2024. Retrieved from
https://www.ftc.gov
(Note: Data for 2024 may be preliminary; the FTC typically releases final data annually.)
4.Centers for Medicare & Medicaid Services (CMS). (2024). Medicare Telemedicine Statistics and Fraud Alerts. Retrieved from
https://www.cms.gov
For more information about emerging fraud threats, relevant trainings, and certification resources, visit the PNW ACFE website. Stay informed, stay prepared, and together, let’s keep building a fraud-resistant Pacific Northwest.