UK fraud data reveals its impact on the entertainment industry
Film and TV are some of the greatest aspects of the entertainment industry and allow people working within that sector to embrace their creative spirit to complete projects to help bring joy to their viewers.
However, it will be devastating for them to be aware of how damaging fraud is to their industry. A new interactive slider from Skurio has revealed that in the UK, the daily cost of fraud has surpassed £375 million and its impact on the entertainment industry is that every day, consumers could have purchased 62,661,513 monthly Netflix subscriptions and 55, 606,291 cinema tickets!
Businesses have been doing their best to take action against fraud with the aid of dark web monitoring solutions, but the problem with piracy in the entertainment industry has become so widespread that it is impossible to keep track of all the effects.
How are Fraudsters Affecting the Entertainment Industry?
The internet has brought about many changes in our daily lives. Streaming services like Spotify and Netflix are perfect examples of how the internet has transformed the entertainment industry to become more accessible.
However, with increases in revenue come increases in fraud cases to steal this money away. Fraudsters use a variety of methods to extract data to further their needs, which in turn affect the entertainment industry financially.
Other common methods used by scammers are phishing, pharming, malware and viruses. Phishing is when someone tries to get your private information through fake emails that look real. To avoid this method of hacking, always check the email address carefully to make sure it’s legitimate.
Below are what is deemed to be the biggest ways piracy affects the entertainment industry:
1. Illegal Internet downloads
Blogs and news sources keep reporting about the growing importance of streaming services such as Netflix, Spotify and Apple Music. The amount of money spent on streaming services is skyrocketing, while the sales of physical media such as DVDs and CDs continue to decline rapidly.
These services need to compete with illegal and free online content from torrent websites like The Pirate Bay. Illegal Internet downloads are essentially acts of fraud because it violates copyright law.
People who illegally download music through peer-to-peer sharing services such as Bit Torrent violate the law by sharing or downloading a work without a license from the copyright holder.
2. Copyright Infringement
Copyright infringement is the use of works protected by copyright law without permission, infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works.
Online streaming services such as Netflix and Spotify are facing a growing challenge from fraudsters who use malware to hijack the computers of subscribers and then make them download bogus apps which subscribe them to premium accounts.
3. Stolen passwords for online streaming sites
Live streaming has become very popular in recent years. All over the world, people like to view live shows and events online such as sports, concerts, films, and TV shows. Some of these services offer membership options that allow users to watch specific events and shows.
Unfortunately, there are hackers who take advantage of online streaming sites by stealing passwords and making money from their own websites without paying any royalties to the entertainment industry and the streaming service that provides this content.
Online streaming sites and streaming service providers have been fighting against these hackers, with Netflix being the biggest streaming company that has been a victim of this issue recently.
4. Unauthorised sales of products made overseas illegally
The entertainment industry is a multi-billion dollar business that’s been experiencing massive growth in recent years. With this increase, so too has fraudster activity and it can be difficult enough when dealing with these fraudsters.
Unauthorised sales of products such as copied DVDs is a very serious issue that affects the entertainment industry. In fact, fraudsters have been extracting money from our artists for years now, and the stress and anxiety that this can bring to victims can be extremely unbearable.
We have seen the various ways fraudsters use to extract money from the entertainment industry and streaming services. From extorting artists to hacking social media accounts, it is clear that there are many threats in this space.
One of the main issues for victims of fraud is being able to identify when they are being targeted by these criminals because they can be so cunning and convincing.
The sooner action is taken against fraud, the better. Taking action now will prevent the cost of fraud from escalating even further in the future.