Surge in mobile fraud and phishing, IDology fraud report finds

Credit card fraud and account takeovers remain the most widespread forms of fraud, but phishing schemes and mobile fraud have surged. Moreover, mobile fraud has been rising across all methods including spoofing, SMS and SIM swap, and for the first time, striking a balance between fraud prevention and customer friction is reported among businesses as the single biggest challenge to fighting fraud.

The number of businesses that feel their industry is least prepared to detect and prevent mobile device attacks increased 167% compared to 2017. Businesses reported a 63% increase in mobile fraud. All types, including porting, spoofing, hacking and fraudulent change events, are on the rise. Caller ID spoofing increased by 74%, porting by 69% and SMS interception by 50% compared to 2017.

As a result, utilization of mobile device attributes for verification, artificial intelligence and machine learning viewed as the most impactful trends in identity verification going forward.

Once thought of as a compliance checkbox measure, 85% of businesses now consider identity verification a strategic differentiator due to rising, more sophisticated forms of fraud, competitive pressures and consumer expectations for fast, easy digital onboarding.

However, for 75%, identity verification has become more complicated in the last three years. Companies are realizing the need to move toward more robust and comprehensive multi-layered identity verification solutions that examine a full spectrum of identity attributes.

For additional insights into fraud trends across a variety of industries and firsthand perspectives shared by executives on the front lines of fraud prevention, download the full Annual Fraud Report.