Fraud rings continue to rise
Source: Middle East Insurance Review | Jan 2023
Less sophisticated’ fraud – in which doctored identity documents are readily spotted – jumped 37% in 2022, according to Onfido 2023 Identity Fraud Report released in December 2022.
The report revealed that fraudsters can scale these attacks on an organisation’s systems en masse, round the clock.
It is estimated that the current global financial cost of fraud is $5.38tn, which is 6.4% of the world’s GDP. With most fraud now happening online (80% of reported fraud is cyber enabled), the new report uncovers patterns of fraudster behaviour, attack techniques and emerging tactics.
Over the last four years, fraudsters’ working patterns have dramatically changed. In 2019, attacks mirrored a typical working week, peaking Monday to Friday and dropping off during the weekends. Yet over the last three years, fraudulent activity started to shift so that levels of fraud span every day of the week.
In 2022, fraud levels were consistent across 24 hours, seven days a week. With technology, fraudsters are more connected across the globe and are able to traverse regions and time zones and easily take advantage of businesses’ closed hours when staff are likely offline. This hyperconnectivity means there are no more ‘business hours’ for fraudsters and sophisticated fraud rings – they will scam and defraud 24/7. M