fraud prevention, fraud, cybersecurity
Cybersecurity Europe Trending

AU10TIX Reveals Payments Sector is Most Targeted as Firm Prevents $13bn in Fraudulent Transactions

Identity fraud schemes are becoming more and more sophisticated as fraudsters look to impersonate others to gain access to their finances. As a result, organisations must do everything they can to ensure they keep their data and consumers safe. One firm at the top of its game is AU10TIX, the identity verification and management platform, as it has protected companies against over $18billion in business fraud since 2021.

This success has been seen in large parts due to AU10TIX’s Fraud Monitor, formerly known as INSTINCT. Drawing insights from millions of transactions processed across 249 countries, this solution, along with the company’s IDV (Identity Verification) Suite, have proven to protect organisations against even the most sophisticated identity fraud schemes.

The impact of AU10TIX’s multi-layered fraud prevention solutions is evident across multiple sectors. In fact, significant savings have been realised in each industry. In the payments sector alone, AU10TIX’s solutions have prevented over $13billion in fraudulent transactions. Other impacted sectors include cryptocurrency and trading ($2.7billion), banking (over $1billion), and shared economy ($776million).

Furthermore, in Q1 of 2024 alone, AU10TIX has already prevented over $1.3billion in fraud. These figures underscore AU10TIX’s commitment to combating fraud across industries and protecting businesses from financial loss.

Building on success

In 2023, AU10TIX prevented twice the fraud that it had in 2021. This period also witnessed a notable shift from traditional fraud to professional fraud orchestrated by organised crime groups utilising AI. In 2021, the majority of attacks detected were traditional fraud attempts identified by the IDV suite, with synthetic AI-generated fraud accounting for only a third of the loss prevented.

However, by 2023, a significant 70 per cent of the fraud loss prevented was synthetic AI-generated fraud detected by the Serial Fraud Monitor. This shift underscores the evolving tactics of fraudsters towards more sophisticated methods. It also highlights AU10TIX’s advanced capabilities in detecting and mitigating both traditional and AI-generated fraud.

Furthermore, AU10TIX observed significant shifts in fraud patterns across regions and document types, indicating evolving tactics among fraudsters. These include:

  • In 2021, cryptocurrency was the most targeted sector with a 36 per cent share. This decreased to seven per cent and 11 per cent in 2022 and 2023, respectively.
  • The APAC region’s share of crypto fraud increased from approximately 15 per cent in 2021 to about 25 per cent in 2023.
  • Among the document types most exploited by fraudsters, fake driving licenses accounted for ~60 per cent of attacks in 2021, but only ~30 per cent in 2023.
  • Fake passports were used in only 12 per cent of attacks in 2021, but a full 27 per cent in 2023.

“The escalating threats of cybercrime and digital fraud necessitate stronger safeguards for customer identity and personal information,” said Dan Yerushalmi, CEO of AU10TIX. “With this announcement, we reaffirm our unwavering commitment to assisting organisations in fortifying their defenses. We want to ensure secure and seamless access to digital transactions.”

Support with Serial Fraud Monitor and Digital ID

AU10TIX’s IDV suite validates physical and digital ID documents of all types using built-in ID, age, and address verification, along with voice and video consent, face comparisons, and liveliness testing. The company’s Serial Fraud Monitor detects coordinated mass ID fraud attacks. It uses advanced neural networks to monitor evolving fraud patterns, repetitions and conflicts in customer traffic while cross-checking ID data against a consortium of more than 60 major companies.

With Serial Fraud Monitor, organisations can not only detect and halt fraudulent customers. They can also identify customers who consistently accrue positive scores over time, offering them enhanced service as trusted users.

The announcement comes on the heels of AU10TIX’s launch of Digital ID. This service enables businesses to rapidly and accurately verify digital IDs of all types. All the while, maximising security and preventing fraud.

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