A recent report by LexisNexis Risk Solutions reveals a concerning shift in the landscape of fraud. For the first time, first-party fraud has overtaken scams as the leading form of global fraud attacks, according to the 2024 edition of The Calm Before the Storm. This trend has significant implications for businesses of all sizes, particularly those engaged in lending, e-commerce, and other high-risk transactions. At Enoch Tarver, our Business Law team is closely watching these developments to help companies protect their operations and reduce legal risk.

What Is First-Party Fraud?

Unlike scams or third-party fraud, where criminals impersonate others, first-party fraud involves individuals misrepresenting themselves or their intentions to gain financial advantage. Common examples include falsifying income on a loan application, using synthetic identities, or maxing out credit lines with no intent to repay.

The report shows that first-party fraud accounted for 25% of fraud globally in 2024, up from 15% the year before. This rise is largely driven by economic pressures and the increasing sophistication of fraudsters who exploit digital systems.

Why This Matters for Georgia Businesses

The rise of first-party fraud puts additional legal and operational pressure on businesses, particularly in Georgia’s fast-growing financial, retail, and tech sectors. As more companies expand their digital offerings and customer bases, the opportunity for bad actors to abuse these systems also grows.

In addition to financial loss, businesses face potential regulatory scrutiny and legal exposure if they fail to implement adequate fraud prevention measures. That’s where the guidance of a trusted legal advisor becomes essential.

How Enoch Tarver Helps Businesses Address Legal Risks

At Enoch Tarver, our Business Law practice is uniquely positioned to help organizations navigate the legal implications of fraud and protect their interests. Our attorneys advise clients on:

• Contractual safeguards to reduce exposure to fraudulent behavior
• Internal compliance policies to ensure financial and operational controls are robust
• Employee training and accountability structures to prevent internal fraud
• Dispute resolution and litigation if fraud leads to breach of contract, financial harm, or regulatory issues

With the legal environment becoming more complex in response to rising fraud rates, proactive planning is key. We work closely with clients to review business practices, improve fraud detection protocols, and establish sound governance structures.

Preparing for What’s Next

As LexisNexis aptly titled their report, this could be “The Calm Before the Storm.” The surge in first-party fraud is likely just the beginning of a larger wave of digital deception and legal complexity. Businesses that act now—by updating their legal documents, reinforcing their compliance programs, and seeking legal counsel—will be better equipped to weather the coming storm.

At Enoch Tarver, we combine legal excellence with a deep understanding of business challenges. If your organization needs strategic legal support to navigate today’s evolving risks, our team is ready to help.

Contact us today to learn how our Business Law attorneys can protect your company from fraud-related legal exposure.