According to the data from Signicat, fraud attempts have increased significantly from 2021 to 2024, reaching 88%. In particular, identity fraud cases have surged by 69%.
Identity Fraud Poses a Growing Threat
The report identifies several vulnerabilities in the transaction process, which is the most exposed area with 40% of identity fraud attempts occurring here. Attackers primarily target customers, followed closely by weaknesses in technology systems.
Identity fraud can impact up to 22% of a company’s annual revenue, and dealing with its prevention costs significantly. However, only about half of businesses actively measure the impact of identity fraud on their operations, making it difficult for them to take effective action.
Despite not fully comprehending the threat, 74% of businesses believe they are effectively combating fraud, often ignoring potential risks that affect both customers and the broader economy.
Fraud Tactics Evolve Rapidly
Fraudsters frequently change their tactics to adapt to new technologies. To stay ahead, businesses must also be adaptable, focusing on areas where fraud is most prevalent.
Signicat’s report stresses the importance of improving fraud measurement and reporting methods. With AI making traditional fraud more complex, old schemes can now cause greater revenue loss through advanced technologies.