The 2023 Identity Fraud Report analyses top global fraud trends and insights from 2022 and shows increased fraud attempts within the sectors of financial services and cryptocurrency, with the US leading in terms of fraudulent activity.
Compared to 2021, the report reveals an overall increase of more than 18% in global fraudulent activity, with more than half (51%) having been classified as identity fraud. Furthermore, the findings also highlight that the most prevalent growth was in recurring instances of fraud across industries, with a year over year (YoY) increase of 46.62%.
Veriff representatives have advised that varied factors of the likes of economy’s digitalisation because of the COVID-19 pandemic and increasing geo-political tensions have resulted in an escalation in incidents related to fraud and identity farming. With fraud rates continuously on the rise, Veriff believes that having an overview of the current state of global fraud across industries and regions is essential when it comes to their mission of fostering online trust, with the implementation of strong identity verification (IDV) technology being thought to be critical when it comes to minimising fraud across all sectors.
The US has the most predominant fraudulent activity, despite having a YoY fraud decrease. Veriff’s findings highlight that on average, the US saw in 2022 more fraudulent activity compared to European countries, even though it had a 12.84% decrease in fraud as opposed to 2021.
Fraudsters are on the go in 2022, those originating from Russia particularly having expanded their reach and infiltrated in countries of the likes of Uzbekistan (28.12%), Kazakhstan (22.86%), and Belarus (22.51%).
Financial services fraud is continuously increasing, with financial services providers having seen in 2022 a 9.73% increase when it comes to fraudulent transactions, with over a half (51%) of all financial services fraud incidents having been categorised as identity fraud.
Cryptocurrency represents a high risk, with crypto businesses having seen a fraud increase in 2022 up to 25.23% over 2021, in comparison with fintechs, who have had a 9.73% increase. Furthermore, Veriff documented the largest growth when it comes to cryptocurrency document fraud, accounting for more than 81.7%.
Identity farming becomes more widespread, with Veriff having found that 9% of all fraud during 2022 leveraged identity farming, which is a type of fraud where an individual or a group creates a multitude of accounts on a large scale to engage in varied fraud forms.
The findings of the report highlight an image of what is seen and experienced by businesses across industries, showing that criminals employ new and increasingly sophisticated techniques to gain access to information. Due to this, organisations have a need for solutions that help them, and their customers alike be better protected against fraudulent activities.
Veriff aims to enable organisations to build trust with their customers through means of intelligent, automated, and accurate IDV. Its identity verification platform can analyse over 11,000 variations of government-issued IDs from more than 190 countries in 47 different languages through means of machine learning and an intelligent decision engine. The company tackles fraud from a multitude of angles looking to ensure that fraudsters and organised fraud rings are caught both in the moment and in recurring attacks.
Founded in 2015, Veriff serves a global portfolio of organisations in the sectors of fintech, crypto, gaming, and mobility, backed by investors including Tiger Capital, Alkeon, IVP, and Accel. Its USD 100 million Series C investment round brought its total funding to USD 200 million, and its valuation to USD 1.5 billion. The company has offices in the US, the UK, Spain, and Estonia, and aims to help businesses and individuals build a more secure world.
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