SEON, the fraud fighters, have announced the release of its report, Fraud Prevention During a Pandemic – SEON Sector Report, which delves into how fraud prevention has changed during COVID-19. The findings in the report were collected via a survey of SEON’s clients across a range of sectors including, iGaming, eSports, cryptocurrency and online trading and travel, as well as the inside expertise of the company’s leading executives.
The company created the report after seeing a change in the online landscape during the first lockdown. With consumer spending shifting sectors, risk rising in-line with online activity and difficult circumstances pushing people into situations where fraud seemed like a lucrative option, SEON set out to find how the changes were being perceived by its clients.
It analysed their answers to learn how fraud trends were developing in different industries, whether they were affected by organised crime and if friendly fraud is on the rise. It also looked to find out how businesses were adjusting to these new trends.
SEON addresses some notable findings in the report. With sporting events postponed and cancelled, the popularity of eSports and iGaming grew – but so too did abuse in the sector. At the same time, cryptocurrencies and trading faced circumstances similar to what is experienced by traditional banks during times of economic crisis, including dramatic waves of fraud attempts. And, like many industries, the travel industry rapidly digitised, but also faced an influx of opportunistic fraud often aimed at circumventing regulations affecting individual travellers.
Tamás Kádár, CEO and Founder at SEON explained the best way for businesses to respond to the situation: “The online space is busier than ever and companies are looking to remain competitive while they find their feet in the new normal. That being said, it’s essential that they don’t focus solely on bolstering conversions at the expense of security and vice versa. It is a balancing act. While security measures should be tightened, businesses should be conducting risk checks that cause minimal obstruction to customers and cause the least friction.
“Throughout the outbreak many businesses have had to adapt quickly to changing circumstances and they should be able to respond to fraud with the same haste. Our report highlights exactly what is happening in terms of fraud across many sectors, including in some of the riskier ones. It will help companies, whether new to the online space, or those that have been operating there for a while, prepare for fraud developments as we head into the new year.”