Fraud increased by 61% in 2021

The findings from Veriff's expert fraud team shine a light on the increase in fraud over the past year, as well as the different types of fraud that Veriff monitors and prevents across fintech, mobility, and crypto industries.

Key takeaways from Veriff's 2021 Identity Fraud Report include:

Identity fraud rates have doubled YOY: Identity fraud makes up close to two-thirds of all fraud incidents globally and has doubled compared to 2020, making it the most prevalent fraud type in the cryptocurrency and fintech industries. Identity fraud is more common in the US than in Europe, making up 60% and 52% of all fraud incidents respectively.

Fintech is at risk: Despite heavy investment in security and prevention tools, the fintech industry saw a 50% increase in fraudulent activity compared to the year before. Identity fraud was most common within fintech, representing 56% of fraud attacks with fraudsters using ID cards the most (33.91%) for their illicit verifications, followed by passports (29.19%).

Crypto goes mainstream: As the crypto industry continues to grow, unfortunately so do the risks. Similar to findings in 2020, crypto remains the most fraudulent industry compared to fintech and mobility, with a net fraud rate of 7.44%. Identity fraud (44%) is the most common type of fraud and Veriff saw the largest growth in ID document fraud, which doubled compared to 2020.

Global fraud increases in the US and Europe: The global mean fraud rate was 9%. On average, in 2021 the US (8%) experienced more fraud than Europe (6%). In 2021, Europe has seen identity fraud double compared to the year before.