Economic factors will dictate risk trends for 2023

Training employees to spot potential scams is the best line of defense against a data breach. Some of the biggest data breaches we’ve seen worldwide were aided by a successful phishing attempt. (Photo: nevodka.com/Adobe Stock)

While there are varying measurements of what qualifies as a recession, the consensus is that rising interest rates and high inflation will continue to put the financial squeeze on Americans in the new year. In these economic conditions, it’s likely insurance companies will see an uptick in claims related to inflation and the heightened cost of living. In risk control, we’re planning to focus our efforts on risks related to the financial impact of a challenging economic climate.

In the coming year, I expect we’ll see an increase in fraud and opportunistic crimes as people become more financially desperate and criminals capitalize on that desperation. People faced with a bleak financial outlook are not only more likely to turn to committing crimes for financial gain but are also more likely to fall victim to scams that promise fast, easy cash.