When it comes to the latest trends of fraud, LexisNexis Risk Solutions warned that fraud keeps surging as digital transactions dominate the global marketplace.
Based on its survey of 2,952 risk and fraud executives in retail, ecommerce, and financial services/lending across the world, the study found that digital fraud has continued to grow as economies around the world re-opened in 2022.
“The latest surge in scams shows how the fraud landscape will continue to morph,” said Stephen Topliss, vice president, fraud and identity, LexisNexis Risk Solutions. "Organisations need to use flexible fraud prevention models coupled with an adaptive authentication approach.”
Highlights of the latest trends of fraud from the company’s study are as follows.
Bot attacks continue rising. Businesses globally experienced a 38% increase in malicious bot attacks in the past 12 months. Ecommerce businesses in particular face a bigger threat as the bot attack rate increased 155% YoY.
Human-initiated attacks continue to grow. Human-initiated attack rate grew 32% YoY globally.
Fraud evolves with new payment methods. Increased adoption and strong demand for contactless payment methods in Asia Pacific are major contributors to the rise of QR code fraud.
QR code payments and peer-to-peer transfers are becoming the leading payment channels in Southeast Asia and India. BNPL is gaining traction globally and in EMEA particularly, leading to an increase in New Account Opening fraud.
Risks across the customer journey. Fraud networks are increasingly industrialised and pervasive in the omnichannel digital ecosystem leading to a dramatic rise in scams including social engineering, identity theft, password reset and account takeover fraud.
The escalating risk of account takeover fraud is one of the biggest threats, as mobile app logins attack rates increased 211% YoY.
Identity verification remains the top hurdle. Customer identity verification remains a top challenge for global businesses across APAC, EMEA, LATAM and NAM. Global businesses cited limited real-time third-party data (46%) and limited real-time transaction tracking (43%) as the two biggest challenges in verifying customer identity in online channels.
Industrialised fraud networks attack businesses across border. Fraudsters work within complex networks.
Every piece of data used is linked to the next valuable piece of data on a mass global scale.
Therefore, businesses and industries need greater collaboration globally to counteract the latest trends of fraud and to understand who the trusted consumers are.
Gaining visibility of trusted consumers allows businesses to open up new revenue channels and upsell to a loyal consumer base.