Science and Tech

Identity fraud doubled in cryptocurrency and banking

Identity fraud doubled in cryptocurrency and banking

sumsub, verification platform, published its second ‘Identity Fraud Report’, studying the trends and statistics of that crime based on millions of identity verifications in 21 industries and more than 500,000 cases of fraud between 2021-2022.

The conclusions were: thatl 55.8% of all identity fraud occurs in 5 countries, cwith 5.1% only in the United States.

(See: Why the importance of cybersecurity has grown.)

They also found that electronic sports have the highest incidence of fraud with a share of 2.9% of all cases. Another of the detected facts is that both cryptocurrencies and banking experienced an almost double increase in identity fraud in 2022.

Besides, payment fraud increased 40% in 2022. They found that ID cards are the most forged document type in 2022. In that year, 79% of all forged documents used male characters. Deepfakes are becoming more advanced and growing in popularity.

Sumsub highlights that fraud targeting the cryptocurrency sector has doubled, going from 0.7% of all fraud cases to approximately 1.5%. Similarly, banking has seen a nearly 100% growth in fraud cases, while e-commerce has seen a thirteen-fold increase in the proportion of fraud (from 0.1% of all cases in 2021 to 1.3 % in 2022).

(See: ‘Tips’ to identify safe web pages for online purchases).

In 2022, the main fraud vectors are account takeover (gaining illegitimate access to someone else’s account), multi-accounting (registering more accounts than allowed), chargeback fraud (raising false disputes with the bank) and biometric spoofing (use realistic skins, deepfakes and other advanced methods).

Sumsub found that websites are being attacked more frequently in 2022, while mobile app attack vectors are not as popular. Even so, the number of cases continues to grow for both mobile and web applications. As for the operating systems that fraudsters target, this year Android extended its lead, seeing 0.4% more fraud than iOS, up from a difference of 0.1% in 2021.

(See: What is accounting fraud and how to prevent it in companies).

Gender statistics on identity fraud suggest that male documents make up the majority of forgeries. This difference has widened further in 2022, reaching 79% compared to 72% in 2021.


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