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LibraryblogFive key takeaways from the Veriff Fraud Report 2024

Five key takeaways from the Veriff Fraud Report 2024

Get the global picture of the current fraud landscape drawn from our cross-industry work across all regions over the last year. With the most insightful data, opinion and analysis from our world-renowned fraud experts, and tips to help you stay ahead of the fraudsters in 2024, the Veriff Fraud Report 2024 is a must read.

The image depicts a concept of fraudulent activity detection using AI technology.
Author
Iryna Bondar
Senior Fraud Group Manager
May 29, 2024
Fraud
Fraud Prevention
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Fraud is here to stay
Identity fraud is a pervasive threat
3. The emergence of authorized fraud
A dynamic and evolving threat landscape
5. Adopting a comprehensive fraud prevention approach
Case study: Veriff & Bluedrop ISM: streamlining training solutions through seamless integration
The Veriff Fraud Report 2024: Key questions
Why is the Veriff Fraud Report 2024 a must-read for my organization?

The Veriff Fraud Report 2024 provides a comprehensive understanding of the fraud landscape worldwide, derived from extensive cross-industry research conducted across all regions throughout the past year. 

With unparalleled data, expert opinions, and in-depth analysis from our globally recognized fraud specialists, coupled with practical tips to help you outsmart fraudsters in 2024, the Veriff Fraud Report 2024 is an essential read.

Let’s take a look at some key highlights from the report – and what it means for fraud prevention strategies for organizations in the digital economy. 

1. Fraud: a persistent challenge

Unfortunately, fraud trends remain worrying, a persistent and escalating issue. According to Veriff's data, 6% of all verification attempts were fraudulent in 2023. 

Further analysis reveals alarming growth rates in specific industries, with eCommerce, payments, and video gaming platforms experiencing the highest impacts. In the eCommerce industry, there was a 40% surge in internet identity fraud compared to 2022. Payments industry saw a staggering 54% increase from a net fraud rate of 4.07% to 6.28%, video gaming platforms observed a 47% rise, and mobility platforms encountered a 19% jump in net fraud compared to the previous year.

2. Identity fraud is a pervasive threat

At Veriff, we recognize that identity fraud remains at the forefront of our customers’ concerns, representing a noteworthy 6.03% of all transaction attempts over the year. Among these, impersonation fraud stands out, making up 85% of all fraud incidents in 2023. Additionally, document fraud, though accounting for just over 1% of all verification attempts, continues to present considerable hurdles.

3. The emergence of authorized fraud

Authorized fraud, where users are deceived into authorizing fraudulent transactions, experienced a worrisome 40% surge in the fourth quarter alone, comprising about 1.15% of attempted verifications. Common examples include scams targeting elderly individuals, tricking them into sharing financial information under false pretenses.

4. A dynamic and evolving threat landscape

For our customers, the worry of identity fraud remains top of mind, affecting about 6.03% of all verificationsover the year. In this realm, impersonation fraud is the biggest villain, making up 85% of all fraud incidents in 2023. When it comes to document fraud, which is behind more than 1% of all verification tries, challenges are still notable. Delving deeper, Identity Cards found themselves in the crosshairs in 80% of document-fraud cases... while, interestingly, in North America, the Driver's License becomes the prime target.

Additionally, certain industries within various regions have their own specific weak spots. For instance, while passports are a common tool for fraudsters in eCommerce worldwide, gaming communities in North America face a unique challenge with driver's license fraud. This vulnerability arises primarily because these gaming platforms often require proof of identity for age verification and other security measures. The widespread use of driver's licenses as a primary form of identification in North America makes them a prime target for fraudsters looking to bypass these checks and gain unauthorized access or privileges within these gaming ecosystems.

5. Adopting a comprehensive fraud prevention approach

Addressing the multifaceted and evolving nature of fraud demands a tailored, data-driven, ecosystem-based approach. At Veriff, we offer a suite of fraud mitigation products, within our Fraud Protect and Fraud Intelligence, designed to cater to the diverse needs of different sectors. 

These solutions leverage the latest technology such as AI, biometrics, and an extensive database of over 11,400 document types to enhance fraud detection and provide unparalleled insights and expertise.

By deploying these resources, businesses can ensure the safety and security of their clients, streamline onboarding processes – and safeguard their reputations.

Case study: Veriff & Bluedrop ISM

Veriff plays a vital role for Bluedrop ISM in combating IDV fraud by providing a seamless and secure identity verification solution. By leveraging Veriff's sophisticated authentication process, Bluedrop ISM is able to meet unique client requirements efficiently and securely. Veriff's detailed technical documentation, SOC 2 certification, and GDPR compliance align with Bluedrop ISM's high standards, ensuring a trustworthy integration process. The ability to host data in various jurisdictions caters to diverse client needs, while the clear documentation and accessibility of Veriff's support enhance the integration experience. Through Veriff, Bluedrop ISM not only meets specific client demands but also streamlines operations, allowing teams to focus on strategic initiatives without disruptions. Furthermore, Veriff's adaptive approach in addressing challenges, such as discrepancies in ID expiration, demonstrates its commitment to facilitating a smooth and compliant verification process. Overall, Veriff serves as a crucial partner for Bluedrop ISM, enabling them to enhance security measures, meet regulatory requirements, and deliver a seamless user experience in the fight against IDV fraud.

The Veriff Fraud Report 2024: Key questions

What kind of insights does the Veriff Fraud Report 2024 offer? 

The Veriff Fraud Report 2024 is built on our own data: the insights we gain from providing our customers with a market-leading IDV solution. 

Our data covers:

  • Distribution of fraud subtypes: we break fraud down into four key sub-types, offering insights into each. These are impersonation, document, present man-in-the-middle (MITM) and digital MITM fraud. Our report shows how these have changed year-on-year – and what this means for your business
  • Sectoral breakdown: The Veriff Fraud Report 2024 provides crucial insights and understanding for eight industries, all of which are crucial growth sectors in the digital domain – and targets for fraudsters. These are eCommerce, crypto, payments infrastructure, video gaming, fintech platforms, payments, neobanks, and mobility platforms 

Why is the Veriff Fraud Report 2024 a must-read for my organization?

The Veriff Fraud Report 2024 is a must-read for any organization in the digital economy for one key reason: it is founded on real-world data from a market-leading provider.

Our projections and conclusions are based on front-line data in the battle against fraudsters. 

Veriff’s IDV solution, built upon AI-powered automation and advanced biometrics, relies on a library of over 11,500 government IDs from more than 230 nations and territories around the globe. 

We automatically analyze over thousands of data points, helping to fight evolving fraud typologies, no matter the sector in question. 

In addition:

  • Our Fraud Protect package helps fight the threat of identity fraud. Industry CrossLinks allows different companies to join an industry specific pool of our customers and learn from the network intelligence while staying one step ahead of persistent fraudsters.
  • Fraud Intelligence expands on Fraud Protect by incorporating additional layers of data to analyze. This includes a RiskScore feature that assesses the risk level of an IDV session. Accessing this comprehensive data via API allows customers to integrate it more deeply into their own systems, offering enhanced insights beyond what is visible in the UI.
  • Our strategy adopts a comprehensive perspective, integrating multiple facets to combat fraud effectively. Firstly, we utilize theFraud Education Center to disseminate knowledge and awareness among the public and our customers, empowering them with the tools to recognize and mitigate fraudulent activities. Additionally, we offer customized solutions tailored to the specific needs and challenges of our customers, ensuring that our efforts address their unique circumstances. Furthermore, our approach incorporates real-time intelligence gathering, allowing us to stay ahead of emerging threats and adapt our strategies accordingly. By combining education, tailored solutions, and real-time intelligence, we demonstrate a holistic and proactive approach to combating fraud, safeguarding both our customers and the broader community against potential risks.

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