Digital fraud hits those who can least afford it most often, Sumsub finds

A Sumsub analysis compiled as its First Global Fraud Index has shed the light on the global digital fraud trend and the deeper factors driving it.

Some of these factors, according to the analysis, include socio-economic and technological elements that render many countries susceptible to different forms of digital fraud.

The company says the objective of the analysis is to unravel these underlying factors through an interactive world map and provide “actionable insights which can empower governments and regulators to implement targeted measures that work, especially in regions facing elevated risks.”

According to a summary of the research which analyzed data from internal and external sources on 103 countries around the world, the company notes that the Global Fraud Index used four pillars to make its analysis. These pillars include Fraud Activity, Resource Accessibility, Government Intervention and Economic Health.

To analyse the fraud vulnerability levels of countries and how differently they respond to digital fraud threats, the report examines certain indicators like internet speed, cyber security, and cost of living.

Understanding digital fraud trends in critical, Sumsub says, alluding to a Jupiter Research projection that online fraud in the digital payment sector will top the $362 billion threshold by the year 2028.

Per the study, the ten countries least vulnerable to digital fraud are Singapore, Luxembourg, Switzerland, Norway, Denmark, the Netherlands, Finland, Sweden, Ireland and Lithuania, while the ten most vulnerable ones include Pakistan, Bangladesh, India, Indonesia, Ethiopia, Argentina, Ukraine, Brazil, Algeria and Sri Lanka.

Among other notable findings, the analysis reveals that the United States has the highest government AI readiness index in the world, Nordic countries show the highest level of digital government services availability and efficiency, the EMEA region has the quickest access to digital Know Your Customer/ Anti-Money Laundering services, and that countries with GDP per Capita of below $25,000 face higher levels of digital fraud.

Sumsub presents a fraud defence checklist as part of the analysis to help businesses and organizations strengthen their fraud prevention armoury.

Among the tips, the firm urges them to get the right fraud response plan in place, enhance resource availability and cybersecurity measures where possible, put in place measures that ensure a business’ compliance across all jurisdictions through the right government action, and implement a financial resilience and proactive monitoring system to stem fraud arising from economic instability.

Commenting on the report, Sumsub CEO and Co-founder, Andrew Sever, says: “Building on the recognition of our previous findings by experts at INTERPOL and UNODC, we are launching The Global Fraud Index to further advance the digital fraud awareness agenda.”

“The Index highlights the need for stronger collaboration among businesses, governments, and regulators while addressing the challenge of unnecessary digital exclusion. By helping businesses avoid unintended exclusion through advanced solutions like Non-Doc verification, Sumsub fosters a fairer and more inclusive financial ecosystem.”

Sumsub says its annual Identity Fraud Report for 2024 will be published on November 19.

The digital ID verification provider recently completed a pilot for the new Global Digital Identity Certification (GDIC)

Article Topics

biometrics  |  cybersecurity  |  digital identity  |  financial services  |  fraud prevention  |  identity verification  |  Sumsub