FB pixel

Fraud levels have more than doubled globally over the past five years, Jumio reports

Categories Biometrics News  |  Trade Notes
 

New account fraud has gone up 18 percent in 2019 compared to 2018 global reports, adding up to a 106.8 percent increase over 2014 levels, says new data from Jumio.

Although a 19 percent decrease was noticed during the Black Friday/Cyber Monday weekend in 2019, fraud levels are still significantly high, especially in emerging markets, outlines Jumio’s Holiday Fraud Report.

Creating a fake new account is the first step in identity fraud. The double-digit increase in 2019 in new account fraud, account takeovers and identity theft are likely a consequence of the recent massive data breaches, including from Facebook, First American Financial and Verifications.io.

A passport scan can be easily purchased on the dark web for under $15, the report says, and it often comes in a package with multiple identification forms such as a selfie, utility bill, and/or a driver’s license which can be bought for anywhere between $14.71 to $61.27.

On average, Jumio processes some 300,000 verifications on a daily basis and over 200 million identities in over 200 countries. It analyzed global ID fraud patterns from millions of ID verification transactions which occurred between Thanksgiving and the Tuesday after Cyber Monday over the five-year timeframe, and it also looked at account fraud levels in different industries, countries and timeframes.

The highest rates of full-year fraud at 3.27 percent were noticed in the Asia-Pacific region, while the lowest numbers were found in the U.S. at 0.88 percent. Although holiday fraud rates were lower in the U.S. in 2019, the report shows new account fraud in the U.S. was 138 percent higher compared to 2014.

The most reported fraud cases in the region were related to card use in retail banking, consumer tech, telecom and airline sectors. A growing trend for online and mobile fraud was especially noticed in China, Hong Kong and Indonesia where digital financial firms are struggling to gain consumer trust, says the report.

In terms of top industries, increased fraud levels were found in the cryptocurrency and online gaming/gambling industries, with less than 0.6 percent reported in the sharing economy and travel and entertainment industries.

“As cybercriminals perfect and fine-tune their impersonation efforts, it’s getting more difficult for modern enterprises to distinguish between high-risk from low-risk users — and this is only going to accelerate thanks to large-scale data breaches, the evolution of the dark web and the looming threat of identity theft,” said Philipp Pointner, Jumio’s chief product officer. “All too often, companies rely on traditional methods of identity verification which are not well equipped to detect sophisticated methods of new account fraud.”

The global fraud detection market is expected to leap from $20 billion in 2018 to $80 billion by 2025, according to a recent report.

Article Topics

 |   |   |   |   |   |   | 

Latest Biometrics News

 

Age verification comes to social media as age of unregulated use nears an end

If trends continue, social media is set to follow in the path of cigarettes: an activity benefitting early from lax…

 

AI can save UK govt £40B annually, transform public services: Blair Institute

AI will soon be used to pre-check applications for correct information, triage cases by calculating complexity and routing them appropriately,…

 

Papua New Guinea completes national data protection and governance policy

The Ministry of Information and Communications Technology has announced the completion of the national data protection and governance policy, marking…

 

Interpol issues call for biometrics firm to provide mobile data collection devices

Interpol has issued a tender for mobile ​​biometric collection (MBC) devices for collecting fingerprints and facial images. Specifically, the project…

 

ICE, CBP sued for details on migrant data sharing agreements

Digital rights advocacy group Access Now is suing the U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement…

 

French travel minister joins UK lawmakers in floating EES postponement

The European Union’s biometrics-based travel scheme is raising concern in France with the local transport minister not excluding postponement. Minister…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events