Online fraud is a growing problem but businesses are fighting back

Almost 87 percent of respondents to a new survey report an increase in online fraud in the year to April 2024. Just 1.19 percent of respondents saying they experience zero fraudulent IDV (identity and verification) attempts in a month.

The report from Veriff also finds that more than 86 percent of decision-makers say their customers are now more demanding of robust fraud prevention capabilities. This reflects the findings in Veriff's 2024 Fraud Index which found more than 75 percent of consumers consider a company's record on fraud prevention before signing up for a service.

Nearly 78 percent of US decision-makers say they have seen an increase in the use of AI in fraudulent attacks over the past year. On the flip side, nearly 79 percent of CEOs are using AI and ML in fraud prevention.

Companies are fighting back although more could be done. The results suggest that for two-thirds of decision-makers in the US, their firms could be doing more to protect themselves from online fraud.

Almost a third (28.43 percent) of respondents overall use both biometrics and IDV, just 19.48 percent use biometrics alone, while 49.7 percent use IDV alone. However, nearly 96 percent are planning to increase their dependency on IDV, biometrics, or both over the next 12 months.

"Any fraud prevention strategy needs to be holistic," says Ira Bondar, senior fraud group manager at Veriff. "No single tool can fight the multitudinous threat that is the modern fraud landscape, so it pays to create a fraud-prevention ecosystem -- a flexible, multi-layered stack that brings in biometrics, IDV, crosslinking and other solutions to keep ahead of the fraudsters."

The full report is available from the Veriff site.

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