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New IdentityTheft Scam

CHICAGO, June 03, 2021 (GLOBE NEWSWIRE) — As more consumers go online for banking and other financial transactions, new research from TransUnion (: TRU) found that fraudsters are ramping up their efforts in the financial services industry. When comparing the last four months of 2020 (Sept. 1 – Dec. 31) and the first four months of 2021 (Jan. 1 – May 1), the company found the percentage of suspected global digital fraud attempts1 in financial services increased 149%. In the U.S., financial services fraud attempts increased 109%.

Across industries, the rate of suspected digital fraud attempts globally rose 24% when comparing the first four months of 2021 with the last four months of 2020. In the U.S., the percentage of fraud attempts increased at a similar rate (25%) during the same time period.

TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail and telecommunications, among others. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite – TransUnion TruValidate™.

“The rate of fraud attempts are up globally and especially in the financial services industry because fraudsters understand this is where the most high value transactions are taking place,” said Shai Cohen, senior vice president of Global Fraud Solutions at TransUnion. “We are seeing more financial services organizations implement fraud prevention solutions with some success, though our findings make it clear that this is not the time to relax. As lenders increase their customer acquisition efforts in an increasingly digital environment, fraud mitigation needs to be a part of every marketing campaign. Financial institutions also need to do even better to ensure they are providing a secure marketplace that offers friction-right experiences to consumers.”

A secure marketplace is of special importance as COVID-19 accelerated the shift to digital financial transactions. In late September 2020, 40% of consumers with a financial account said in a TransUnion commissioned survey that they are using digital platforms more frequently since the onset of the pandemic. The same survey found 60% of consumers said that the majority of their financial transactions are conducted via mobile applications.

Examining Fraud Types and Their Impact on Industries

TransUnion analyzed industries with the highest increases and declines in the percent of suspected digital fraud attempts against them, comparing the periods of Sept. 1-Dec. 31, 2020 and Jan. 1-May 1, 2021.

1 The percent or rate of suspected or risky fraudulent digital transaction attempts are those that TransUnion’s customers either denied or reviewed due to fraudulent indicators compared to all transactions it assessed for fraud

Top Suspected Digital Fraud Rate Attempt Increases and Declines by Industry

Industry Suspected Fraud
Percentage
Change
Top Type of Fraud
Largest Percentage Increases
Financial Services 149.44% True Identity Theft
Travel & Leisure 25.03% Credit Card Fraud
Gaming 9.24% Gold Farming
Largest Percentage Declines
Logistics -32.74% Shipping Fraud
Insurance -16.35% Suspected Ghost Broker
Retail -8.33% Promotion Abuse

TransUnion defines true identity theft, the top type of digital fraud in financial services, as the consumer using a stolen identity to commit fraud with the victim being a real person. The second and third most reported type of digital fraud by TransUnion financial services customers are first party application fraud and account takeover, respectively.

First-party application fraud is when a consumer refuses to repay legitimately incurred debts and/or falsely claims to be a victim of identity fraud to evade debt. Account takeover is when someone other than the owner of an account uses the account without permission, indicating that the account has been maliciously compromised.

“An interesting dynamic is playing out where we are seeing other industries facing far fewer suspected fraud attempts than what has been observed in financial services. In some cases, we are seeing a decline in such fraud attempts,” said Melissa Gaddis, senior director of customer success, Global Fraud Solutions at TransUnion. “The key takeaway for businesses is that fraudsters do not treat every industry equally. They often pick and choose an industry to focus on based on the time of year or what businesses are seeing more transactional activity. At times, fraud attempts are simply conducted at random simply to determine if businesses are prepared to meet their challenges.”

More information about TransUnion’s quarterly digital fraud analysis can be found here.

About TransUnion (: TRU)
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.®

TransUnion Global Fraud Solutions unite both consumer and device identities to detect threats across markets while ensuring friction-right user experiences. The solutions, all part of the TruValidate suite, fuse traditional data science with machine learning to provide businesses unique insights about consumer transactions, safeguarding tens of millions of transactions each day.

A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people. http://www.transunion.com/business

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Source: on 2021-06-03 08:00:00

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