COVID-19 and the resulting surge in digital transactions has led to an increase in another area: fraud.
There has been a 48% increase in fraud attacks hitting mobile devices, and 36% growth YoY in bot volume targeting financial institutions, according to Fraud Trends to Watch in 2021, a study by LexisNexis Risk Solutions.
The 42% hike in digital transactions, 60% of which were conducted on mobile devices, has made identity proofing “even more challenging,” the study states.
In another disturbing trend, bad actors have increased accessibility to consumer data.
Over 4,500 data breaches have been made public since 2005, and 45% of Americans have had their personal information exposed in a data breach in the last five years.
Moreover, a hacker attack occurs every 39 seconds, the study adds.
Yet another problem is the fact that economic uncertainty leads some individuals to engage in fraudulent activities.
Moreover, “consumer stress and fear can lead to riskier transaction behaviors,”the study notes.
This can lead to increased malware infection on devices and theft of personal identification information.
Overall, vertical sectors experienced these increases in fraud volume since the start of the economic shutdown:
LexisNexis advises brands to:
- Leverage a 360-degree view of their customers
- Utilize multiple Layers of fraud defense
- Prioritize customer experience