Au10tix report pinpoints regional, sectoral drivers of increased digital ID fraud
Weakness in the anti-fraud measures of organizations in one particular region, economic struggles in another and the anonymity that comes with cryptocurrency are driving increased fraud in the online domain, according to a new report from Au10tix. The Q2 2023 Global Identity Fraud Report analyzes millions of online transactions processed in 249 countries from April to June 2023 to identify emerging regional and industry-specific patterns of digital ID fraud.
North America has experienced a 44 percent increase in organized ID fraud compared to previous quarters. This upsurge is believed to be due to economic recovery and inflationary pressures, which are encouraging professional ID fraud syndicates.
In contrast, South American organizations have experienced a much lower two percent attack rate. This is mainly due to their practice of verifying IDs against government databases, creating a more formidable defense against fraud.
The Asia-Pacific region has seen four percent of transactions flagged as digital ID fraud attacks. This exceeds rates seen in other global regions. Au10tix attributes this to the region’s weaker anti-fraud defenses.
In the second quarter, cryptocurrency and trading were the most highly targeted industries, responsible for 47 percent of all attacks. These industries attract professional fraudsters due to the perception of high-profit prospects and inherent anonymity. The second most targeted industry was payments, with 32 percent, followed by commerce, with 12 percent. Only two percent of attacks were directed towards banking. This is likely attributable to the fact that financial institutions tend to invest more in protection compared to retailers and payment providers.
“By identifying the geographical regions and industry sectors that are experiencing the most acute attack rates, we are alerting businesses in those areas to take additional steps to protect their customers,” says Dan Yerushalmi, CEO of Au10tix. “This data reveals which markets fraudsters consider the most vulnerable with the most potentially lucrative return. We hope that by sharing our analysis on a regular basis, we can contribute to the global reduction of identity fraud and make the world a better place.”
Au10tix Founder and Active Chairman Ron Atzmon will deliver a presentation on “The Geography of Fraud” at Money 20/20 USA on Sunday, Oct. 22, at 3:25 p.m. PDT.