Sumsub finds 1 in 100 involved in fraud, updates prevention platform

One out of every 100 users on a digital platform or service is a member of a fraud network, according to internal research revealed by global verification platform Sumsub.

As many as 10.2 percent of users in Bangladesh are in fraud networks, while 4.6 percent of users in China could be described as leaders of fraud rings. The U.S. and UK, on the other hand, each had only 0.2 percent of users involved in fraud rings.

Sumsub found that fraud rings varied in size from 3 to over 750 users. One instance in Estonia saw several dozen crypto exchange applicants upload identical proof of address documents from an unlicensed foreign bank, potentially to have multiple crypto cards issued to the same address.

“Fraud networks, however small they may seem right now, will gain prominence, just like AI-powered deepfakes,” says Sumsub head of AI/ML Pavel Goldman-Kalaydin, further noting that fraud rings pose a greater risk than individual scammers.

Sumsub’s fraud prevention platform has been updated to enhance protection against fraud rings, the company says. The KYC platform uses a database that has successfully identified and reported 2 million fraudsters. It is built on over 1 billion identities and analyzes over 5,000 fraud attacks each day.

Sumsub defends against a number of different kinds of fraud, like account theft, romance scams, and payment fraud. Customers can also set additional checks to automatically trigger. The system reduces false positives to minimize friction for legitimate users.

It has use cases in fintech, e-commerce, iGaming, and online marketplaces.

Article Topics

biometrics  |  financial services  |  fraud prevention  |  identity verification  |  KYC  |  Sumsub