The Veriff H1 2021 Fraud Report is live and we break down some of our findings and observations about the state of fraud globally, as well as across the mobility, crypto, and fintech sectors.
August 26, 2021
Veriff has published its H1 2021 Fraud Report, sharing our findings and observations of the world of online identity fraud during a tumultuous time when the world is beginning to emerge from the grips of a global pandemic.
Our H1 2021 Fraud Report is a compilation of the insights that our specialized fraud team has encountered so far during the first half of this year. Our trusted research team has taken the time to break down our proprietary fraud data by type to help provide context into some of the results and key trends we’ve drawn from our analysis: document fraud, identity fraud, technical fraud, and recurring fraud.
We also reviewed the data through the lens of three specific industries that tend to make up the majority of fraud incidents — fintech, mobility and cryptocurrency — to provide the full picture of where things stand in the world of fraud for the first half of 2021.
Here's our co-Founder and CPO, Janer Gorohhov, speaking about some of the key highlights:
And some of the key takeaways from the report include:
The net fraud rate increased by 15% compared to H1 2020, showcasing how fraud continues to be on the rise despite businesses investing in systems and solutions built for prevention.
Identity fraud experienced the highest year-over-year increase by 19%, a testament to the many fraud incidents that continue to plague businesses and individuals on a global scale.
Out of the various fraud types, recurring fraud experienced a 14% decrease year-over-year due to bad actors discovering new ways to commit fraud and infiltrate systems. Fraudsters are consistently employing new strategies that evade crosslinking, allowing them to only be linked solely on face data.
As cryptocurrency continues to grow in popularity, it also experienced the highest fraud rate increase over the first half of 2021 — something for investors to think about as the digital currency becomes more prevalent over time.
The fintech sector saw a 99% increase in recurring fraud during the first half of 2021. This can be evidenced by velocity abuse — once a fraudster has been approved and infiltrates a system, they will utilize that loophole to get approved as many times as possible, normally verifying different real users without telling them what they’re being verified for.