AU10TIX’s Q2 Report exposes a 44% spike in organised ID fraud, driven by economic recovery and inflationary pressures in North America.
According to the identity verification and management company AU10TIX, which has published its “Q2 2023 Global Identity Fraud Report,” organised ID fraud is becoming more prevalent in North America.
The AU10TIX research, which analyses data from millions of transactions completed in 249 countries between April and June 2023, finds new regional and industry-specific ID fraud trends.
The most significant development is that organised ID fraud in North America has increased by 44% from the previous quarters. Professional ID fraud syndicates are becoming more brazen as a result of inflationary pressures and the continuous economic recovery, especially in the US market.
In the midst of this upsurge, fraudsters are increasingly targeting the Asia-Pacific area, with over 4% of transactions being reported as an ID fraud attack. This startlingly high number significantly exceeds rates observed in other parts of the world. Asian anti-fraud defences have historically lagged behind those of other markets, which is why AU10TIX attributes this plague to them.
They become “soft targets” as a result, drawing criminal activity. As a result of their practise of cross-referencing IDs with official databases, South American organisations have much lower attack rates than other organizations—roughly 2%. This creates a stronger defence against fraudulent activity.
Most targeted sectors were cryptocurrency and trading
“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,” said Dan Yerushalmi, CEO of AU10TIX, in response to the results.
This information shows which markets fraudsters believe to be the most susceptible and have the highest potential for profit. Our constant sharing of our analysis is intended to help reduce identity fraud worldwide and improve the quality of life for all people.
Fraudsters are primarily focusing on the cryptocurrency and trading industries, accounting for 47% of all attacks in Q2. Professional scammers are drawn to these sectors because of their alleged huge profit margins and built-in anonymity. With 32% of the target market, payments is the second most targeted industry, behind commerce (12%).
Attacks against banks only make up 2% of all attacks. This discrepancy is probably due to the belief that financial institutions make more investments in strong security than do merchants and payment processors.
Founder of AU10TIX and current chairman Ron Atzmon will go into further detail about the research and other worldwide trends in identity fraud at his Money 20/20 USA presentation, “The Geography of Fraud,” on October 22.
