The past few years have seen significant changes in fraud dynamics according to data released this week by ID verification solutions firm AU10TIX.
Analysing trends observed between 2021 and 2023, the company has noted an uptick in fraud across a number of sectors. Geographically, the Asia Pacific (APAC) region saw a significant increase in fraud attempts, particularly crypto fraud. The region’s share of global crypto fraud increased from around 15% in 2021 to 25% in 2023.
This increase in fraud falls in tandem with the global growth of cryptocurrencies and crypto exchanges in recent years. Whilst this has generated wealth for many, it has been highlighted as a cause for concern for some.
For example, the United Nations highlighted the crypto sector – coupled with both legal and illegal gambling markets – as a ‘point of least resistance’ to organised crime groups in Southeast Asia, in the words of Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific.
Although the issue of crypto frauds and crypto scams is a global issue, its targeting by global scammers has dropped according to AU10TIX figures. The sector was the most targeted in 2021 at 36%, but this fell to 11% in 2022 and 7% in 2023.
Crypto is not AU10TIX’s only area of focus. The company has noted changes in trends surrounding fake documentation, with the use of fake driving licences having fallen from 60% in 2021 to 30% last year.
However, the number of fake passports used in attacks has risen from 12% in 2021 to 27% in 2023. Synthetic AI-generated documents are often used in this regard, although AU10TIX noted that its data showed AI-generated fraud accounted for just a third of the losses it prevented using its solutions last year.
“The escalating threats of cybercrime and digital fraud necessitate stronger safeguards for customer identity and personal information,” summarised Dan Yerushalmi, CEO of AU10TIX.
“With today’s announcement, we reaffirm our unwavering commitment to assisting organisations in fortifying their defences and ensuring secure and seamless access to digital transactions.”
