AU10TIX Global Identity Fraud Report Pinpoints Economic Recovery and Inflation as Drivers of 44% Surge in North American Organized ID Fraud
Debut Report Spotlights Hidden Geographical and Industry Trends Drawn from Millions of Transactions Across 249 Countries
AU10TIX, a global technology leader in identity verification and management, released its Q2 2023 Global Identity Fraud Report. Drawing insights from millions of transactions processed in 249 countries from April to June 2023, the report identifies emerging regional and industry-specific patterns of ID fraud. Most notably, there has been a 44% increase in organized 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 4.0% 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 defenses, which are historically weaker than in other markets. This renders them ‘soft targets’ that attract bad actors. In contrast, South American organizations experience attack rates of merely 2.0% largely due to their practice of verifying IDs against government databases, creating a more formidable barrier against fraud.
“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. “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 scrutinized, cryptocurrency and trading are the most highly targeted, responsible for 47% 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%, followed by commerce with 12%. Banking accounts for only 2% 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 will discuss the report and additional global identity fraud trends in his Money 20/20 USA presentation, “The Geography of Fraud,” on Sunday, October 22 at 3:25pm local Las Vegas time.
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