Incognia, a leading provider of fraud prevention solutions, has recently released the Gig Economy Edition of its annual Frontline Report. This report sheds light on the biggest fraud challenges faced by global food delivery and ride-hailing companies in 2024. The findings from Incognia’s research reveal some alarming trends in the world of gig economy platforms.
According to the report, fake accounts were used in 57 percent of driver-side fraud cases, highlighting the prevalence of this deceptive tactic. On the consumer side, refund and promotion abuse were tied as the top fraud issues, each accounting for 48 percent of cases. These findings underscore the growing sophistication of fraudsters who are targeting gig economy platforms with advanced techniques to exploit vulnerabilities and deceive users.
One striking example highlighted in the report involves a fraudster who created 800 fake accounts to take advantage of new user coupons, ultimately absconding with 1.5 percent of the total redeemed coupon value for that month. Another case involved a bad actor accessing 400 different accounts on a single device to exploit thousands of dollars worth of promotions within a 30-day period. These instances demonstrate the significant financial losses that can result from fraudulent activities on gig economy platforms.
André Ferraz, co-founder and CEO of Incognia, emphasized the detrimental impact of fraud on user trust and overall user experience. He noted that fraudsters are continuously evolving their tactics to target gig platforms, posing a significant threat to the integrity of these services.
In addition to fake accounts and promotion abuse, refund abuse emerged as a major concern, representing nearly half (48 percent) of consumer-side fraud cases. This type of fraud not only affects a large number of merchants globally but also poses a significant financial risk. One notable case identified by Incognia involved a single Samsung device accessing over 200 accounts to fraudulently return more than $5,000 worth of stolen merchandise, which could then be resold for profit.
To address these challenges, Incognia recommends that merchants take proactive measures to protect themselves against fraud. The company’s report outlines various types of gig economy fraud and provides insights into strategies that can help mitigate these risks.
In a positive development, food delivery platform Grubhub recently partnered with Incognia to leverage its fraud prevention technology. This collaboration resulted in increased security, greater order profitability, and reduced care costs for Grubhub, highlighting the effectiveness of advanced fraud prevention solutions in safeguarding gig economy platforms.
Overall, the Gig Economy Edition of the Frontline Report by Incognia offers valuable insights into the evolving landscape of fraud in the gig economy. By understanding the challenges and implementing effective fraud prevention measures, merchants can enhance security, protect user trust, and ensure a seamless experience for both consumers and service providers.
