Mayday! How Economic Downturns Create a Perfect Storm for Fraud

Economic instability brings more than just financial adversity – it opens the door for fraud to flourish. During the three month recession in 2020, the GDP fell 32.9%, leading to +8% growth in fraud in the U.S. Since 1988, every major recession has resulted in an increase in fraudulent attacks on both consumers and businesses. Historical data shows us a consistent pattern: as the economy declines, fraud rates rise. This is an ominous trend since global brokerages recently raised the odds of a recession taking place in 2025 to 60%.