Organized ID fraud increases 44 percent
Identity management company AU10TIX has released its latest Global Identity Fraud Report, based on insights from millions of transactions processed in 249 countries from April to June 2023.
It finds there has been a 44 percent increase in organized ID fraud in North America compared to preceding quarters. This upsurge is believed to be driven by the ongoing economic recovery and inflationary pressures, particularly in the US market, which are emboldening professional ID fraud syndicates.
The Asia-Pacific region is the leading target for fraudsters, with over four percent of transactions flagged as ID fraud attacks. AU10TIX attributes this to Asian anti-fraud defenses, which are historically weaker than in other markets, making them soft targets.
"By identifying the geographical regions and industry sectors that are experiencing the most acute attack rates, we are alerting businesses in those areas to take additional steps to protect their customers," says Dan Yerushalmi, CEO of AU10TIX. "This data reveals which markets fraudsters consider the most vulnerable with the most potentially lucrative return. We hope that by sharing our analysis on a regular basis, we can contribute to the global reduction of identity fraud and make the world a better place."
Among the sectors examined, cryptocurrency and trading are the most highly targeted, responsible for 47 percent of attacks in Q2. These industries attract professional fraudsters due to their high-profit prospects and inherent anonymity. The second most targeted industry is payments with 32 percent, followed by commerce with 12 percent. Banking accounts for only two percent of attacks, likely because of the assumption that financial institutions invest more in robust protective measures than retailers and payment providers do.
Ron Atzmon, founder and active chairman of AU10TIX, will host a presentation on 'The Geography of Fraud' at Money20/20 USA in Las Vegas on October 22nd.
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