Recent reports underscore increased fraud losses driven by both old methods and new technologies. As fraudsters exploit advancements in AI and other sophisticated tools, their methods have become more difficult to combat.
From AI-driven scams and sophisticated phishing attacks to advanced identity document fraud, the scope and impact of online fraud are more severe than ever before.
Old methods, new technologies drive fraud losses
Experian | 2024 US Identity and Fraud Report | August 2024
- According to the FTC, consumers reported losing more than $10 billion to fraud in 2023 alone, representing a 14% increase over the previous year and the highest dollar amount ever reported.
- Businesses recognize the challenges of GenAI with 70% of businesses saying that AI fraud is expected to be the second greatest challenge for their business.
- Currently, multifactor authentication (48%) and the use of passwords (45%) are the most used fraud prevention methods.
Consumers continue to overestimate their ability to spot deepfakes
Jumio | 2024 Online Identity Study | May 2024
- US consumers were most likely to be direct victims of fraud (39%) either knowingly or by suspicion, and Singapore was the top country to report knowing a victim (51%).
- While 46% of the consumers who were or suspected they were a victim of online fraud or identity theft said the ordeal was a minor inconvenience, 32% said it caused significant problems and several hours of administrative work to resolve, and 14% went as far as calling it a traumatic experience.
- Regardless of whether they’ve been a victim of fraud or identity theft, most consumers worry daily about falling victim to data breaches (79%) and account takeover attacks (77%).
Selfie spoofing becomes popular identity document fraud technique
Socure | Unmasking Document and Biometric Identity Fraud: Exposing the Deceptions Report | May 2024
- Document image-of-image was the most prevalent identity (ID) document fraud technique in 2023, occurring in 63% of all IDs that were rejected.
- Fraud surrounding IDs has become pervasive, accounting for 70% of all fraudulent verifications evaluated by Socure’s document verification solution. The other 30% of fraudulent captures is biometric-related fraud, including selfie spoofing and impersonations (15%) as well as a mismatch between the headshot on the ID and the selfie (15%).
Vishing, smishing, and phishing attacks skyrocket 1,265% post-ChatGPT
Enea | Mobile network security: Bridging the gap between enterprise needs and CSP capabilities | February 2024
- 76% of enterprises lack sufficient voice and messaging fraud protection as AI-powered vishing and smishing skyrocket following the launch of ChatGPT.
- 61% of enterprise respondents said their mobile messaging fraud costs were significant, yet more than three-quarters don’t invest in SMS spam or voice scam/fraud protection.
Payment fraud is hitting organizations harder than ever before
Trustpair | Fraud in the Cyber Era: 2024 Fraud Trends and Insights | February 2024
- 96% of US companies were targeted with at least one fraud attempt in the past year.
- 36% of companies said the average financial loss of successful fraud attacks they experienced was more than $1 million. 25% said the loss was more than $5 million.
- Only 5% of companies say they can’t keep up with the growing sophistication of fraudsters and fraud attacks.
Digital nomads amplify identity fraud risks
Regula | Identity Verification in a Globalized World | January 2024
- 80% of decision-makers directly associate the digital nomad movement with identity fraud, saying that it is increasing the number of forged or counterfeited documents organizations find during verification.
- The average growth in identity document fraud is stated to be 14%; however, in the Insurance industry, it is 22%, and in the Financial and Banking Services it is nearly 19%.
- 57% of organizations have implemented biometric authentication to detect and prevent fraud during the digital onboarding process.