In Q1 2022, the global digital fraud rate decreased 22.6% as compared to Q1 2021.
however, while fraud in most sectors declined, the gambling industry had the second-highest level of growth behind insurance, a 50.1% increase.
Shai Cohen, senior vice president of global fraud solutions at TransUnion, said that this suggested criminals may be focusing more on new industries.
“Sophisticated fraudsters pressure test which industries have ramped up fraud prevention measures and as a result, turn to new industries if efforts are being thwarted. That’s exactly what we have observed recently as fraudsters look for new opportunities or points of vulnerability,” he said.
The survey of 10,391 adults in select countries and regions globally from Feb. 7-23, 2022 determined that 36% of consumers had been targeted by digital fraud in the last three months compared to 38% the previous quarter.
Of those consumers that had been targeted, phishing scams were most common (31%) followed by money/gift card scams (28%) and third-party seller scams on legitimate online retail sites (23%).
“As fraud rates stabilise during a period when fraudsters are searching for new vulnerabilities, many organisations have shifted their focus to identifying more of the good customers and transactions to increase revenue and customer lifetime value.
“By reducing false positives, false declines, and manual review rates, organisations can dramatically improve the customer experience through trusted connections while still keeping the fraudsters at bay,” said Sean Donnelly, senior vice president of go-to-market global fraud solutions at TransUnion.