Organised ID fraud levels are on the up in North America according to AU10TIX, the identity verification and management company, which has released its ‘Q2 2023 Global Identity Fraud Report’.
Drawing insights from millions of transactions processed in 249 countries from April to June 2023, the AU10TIX report identifies emerging regional and industry-specific patterns of ID fraud.
Most notably, there has been a 44 per cent increase in organised ID fraud in North America compared to preceding quarters. This upsurge is believed to be driven by the ongoing economic recovery and inflationary pressures, particularly in the US market, which are emboldening professional ID fraud syndicates.
Amid this escalation, the Asia-Pacific region emerges as the leading target for fraudsters, with over four per cent of transactions flagged as an ID fraud attack. This alarmingly high figure greatly surpasses rates seen in other global regions. AU10TIX attributes this epidemic to Asian anti-fraud defences, which are historically weaker than in other markets.
This renders them ‘soft targets’ that attract bad actors. In contrast, South American organisations experience attack rates of merely two per cent, largely due to their practice of verifying IDs against government databases, creating a more formidable barrier against fraud.
Crypto and trading sectors targeted the most
Dan Yerushalmi, CEO of AU10TIX, offered his take on the findings: “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.
“This data reveals which markets fraudsters consider the most vulnerable with the most potentially lucrative return. We hope that by sharing our analysis on a regular basis, we can contribute to the global reduction of identity fraud and make the world a better place.”
Among the sectors scrutinised, fraudsters are targeting cryptocurrency and trading the most: responsible for 47 per cent of attacks in Q2. These industries attract professional fraudsters due to their perceived high-profit prospects and inherent anonymity. The second most targeted industry is payments with 32 per cent, followed by commerce with 12 per cent.
Banking accounts for only two per cent of attacks. This divergence is likely attributable to the assumption that financial institutions invest more significantly in robust protective measures than retailers and payment providers do.
AU10TIX founder and active chairman Ron Atzmon plans to further discuss the report and additional global identity fraud trends in his Money 20/20 USA presentation, ‘The Geography of Fraud,’ on 22 October.