Report: Sophisticated Identity Fraud Continues To Grow

The global provider of identity verification and – Onfido authentication published the Identification Scams Record 2022, which suggests an increase in cunning identity fraud and an increase in organized crime. In the past 12 months were worldwide 47% of all fraud cases with identity documents classified as „moderate“ fraud, which is an increase of 57% compared to the previous year. Less obvious errors, such as visibly incorrect fonts or counterfeit security features, suggest an increase in organized crime. These organized groups try, for example, to create „verified“ accounts with fake documents and then resell them.

Retail fraud is on the rise despite faltering supply chains worldwide

Between October 2020 and October 2021 the average fraud rate for identity documents (ID) worldwide was 5.9%. In Germany, the battle pass away fraud rate during this period was slightly lower with an average of 3.9%. Another result of the record: Despite Worldwide stagnant supply chains, fraud in retail is increasing, compared to the previous year this is 36 % increased. In Germany, sin The most frequently attacked sectors of service, finance and PC gaming or gambling.

Identity fraud reaches pre-pandemic level in Germany

Consumers feel more and more secure when doing online transactions. Therefore, it appears that scammers continue to rely on online activities. Seen worldwide, fraud with identity documents, which users need when shopping online, for example, has not yet reached the level it was before the pandemic. In the year 2020 there was an increase in ID fraud 41%. In the last 12 months ago the average fraud rate was 5, 9%, although physical stores had reopened in the course of the year. Pass away fraud activities have still not returned to pre-pandemic levels.

In Germany, the average fraud rate fell to the pre-pandemic level and according to the Identification Fraudulence Record 2022 at 3.9%. Passes away could mean that non-professional criminals were active as fraudsters during the lockdowns and difficult economic times, religious women have returned to their usual, legal work.

Interpol warns of threats to the global economy from identity fraud

Onfido works with the international criminal police organization Interpol is working together to gain knowledge on fraud techniques. Contributing to the Fraudulence Record, Interpol states: “Forged documents pave the way for serious organized crimes such as money laundering and terrorist financing. If it is not possible to detect forged documents both in the real world and on the net, passes away represents a threat to citizens, countries and the entire world economy. We have to increasingly adjust to the fact that identity documents are not only physical, but also electronic can be used. Businesses and governments alike face the challenge of detecting fraud in this environment „.

Other trends in identity fraud

Biometric data is an effective deterrent: Far fewer fraudsters tried to bypass biometric verification than document verification. Pass away average fraud rate for documents was 2020 at 5.9%, compared to 1, 53% for selfies and 0, 17% for videos. Pass away verification with biometric data likewise promises more security than conventional document verification.