A new report from global data and analytics provider LexisNexis Risk Solutions has found a continuation in the rise of digital fraud as economies re-open following the pandemic.
The LexisNexis Risk Solutions report, Trust and Collaboration as Foundations to Fight Fraud, reveals a 20 per cent increase YoY in the number of global digital attacks when compared to 2021.
The LexisNexis Identity Abuse Index, which records the percentage of attacks per day, shows attack rates fell overall in the fourth quarter of 2022. However, this was not the case in certain regions, with significant spikes in APAC, LATAM and North America at the end of the year.
Despite the effects of economic uncertainty, inflation and the war in Ukraine, digital transactions in 2022 rose by 24 per cent YoY primarily driven by increasing transactions in financial services (29 per cent) and e-commerce (17 per cent).
As the volume of digital transactions rose, so too has the attack rate on digital payments – which increased 27 per cent YoY. LexisNexis also explained that criminals are continuing to target the communications, mobile and media industries more than any other sector.
Alternative payment methods, such as digital wallets, QR code payments and peer-to-peer transfers, continue to gain popularity, particularly in APAC. The shift has contributed to the 32 per cent YoY growth in payment transactions in that region, yet criminals are also fast at exploiting vulnerabilities. The report shows a 50 per cent YoY increase in APAC’s payment attack rate.
‘Businesses remain vulnerable to transactional fraud’
Stephen Topliss, vice president of fraud and identity strategy for LexisNexis Risk Solutions, discussed the report’s findings: “Businesses remain vulnerable to transactional fraud during this time of accelerated digitalisation. Despite heightened regulatory scrutiny, technological innovations and higher public awareness, there are persistent challenges in preventing fraud.
“This trend is likely to endure as consumers continue adopting digital channels. As fraud levels and sophistication increase, relying on multi-factor authentication alone as a defence is inadequate in today’s digital world. Organisations, industries and countries must collaborate and identify the interconnected signals of complex fraud attacks because criminal networks working in a structured way are here to stay. Addressing the latest scams requires targeted machine learning models that can consume the latest digital intelligence insights, behavioural biometrics signals and mule account indicators.”
The cybercrime report is based on cybercrime attacks detected by LexisNexis’ Digital Identity Network platform, which processed 92 billion transactions in 2022, including common attack types such as new account creation, account login and payment fraud.
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