Apple Pay, one of the most popular modes of mobile payment, saw a 60% rise in fraud attempts as rises overall cases continue to grow by 41%

According to NICE Actimize, during their ‘2022 NICE Actimize Fraud Insight Report’, Apple Pay had its usage grow by 37% quarter-over-quarter last year. However, this popularity coincides with the growing fraud attempts on the payment channel. 

The fraud analysts carried out data from 2021 which details the rise in banking fraud attempts during their data-driven research. 

Craig Costigan, CEO of NICE Actimize, commented: “Incidents of fraud against financial institutions and consumers continue to rise. For financial institutions to conquer these challenges, they must fully leverage data as the most important element of fraud prevention. 

“World-class collective intelligence with advanced analytics and AI provides protections that safeguard banking channels, while also enabling more friction-free customer experiences.” 

Powered by its ‘X-Sight AI’, NICE Actimize found that despite the ‘substantial’ increase in payments via mobile devices, 61% of attempted fraud attacks come through mobile apps, identified as ‘Account Takeovers’ (ATOs). 

Fraudsters are targeting the high prevalence of mobile use to target and leverage older devices. NICE Actimize revealed that mobile phones with older operating systems made before 2016 are three times more likely to be associated with fraud attempts than newer devices with up-to-date systems. 

Furthermore, the Fraud Insight Report also found that almost half (46.9%) of attempted fraud stemmed from card-not-present transactions across payment channels. Online transactions presented a growing focus in the threat landscape as a result. 

NICE Activize collates its data through ‘federated learning techniques’ along with collective intelligence to identify emerging and suspicious threats of fraud. The report was created by analysing billions of transactions, covering ACH, wires, checks, card purchases and P2P (Peer-to-Peer) transactions. 

The fraud analysts project that P2P transactions will emerge as a threat to financial institutions combined with the rise of digital-initiated transactions. In its findings, NICE Actimize saw a 63% increase in P2P fraud.