AU10TIX reports a substantial 44% surge in organized identity fraud in North America compared to previous quarters. This increase is thought to be propelled by the ongoing economic recovery and inflationary pressures, notably in the US market, emboldening professional identity fraud syndicates.
The primary focus of these fraudsters is the Asia-Pacific region, where over 4% of transactions are identified as identity fraud attacks. This high rate significantly exceeds figures from other global regions. AU10TIX attributes this trend to historically weaker anti-fraud measures in Asia-Pacific, rendering it an attractive target for malicious actors. In contrast, South American organizations experience lower attack rates, around 2%, largely due to their practice of cross-referencing IDs with government databases, creating a more robust defense against fraud.
A noteworthy disparity emerges in attack methods involving document verification (averaging 37%) versus those using selfies (averaging 5%). This contrast underscores the importance of implementing a multilayered identity verification system, encompassing liveness testing, biometric verification, and consortium validation. It also highlights that professional fraudsters continue to rely on traditional methods, such as personal data and document numbers, to generate synthetic identities for coordinated attacks.
The integration of generative AI and intelligent malware is enhancing the effectiveness of malicious actors, introducing a higher level of automation and autonomy in attacks. This development significantly augments the toolset available to both attackers and defenders.
Dan Yerushalmi, CEO of AU10TIX, emphasizes the importance of identifying vulnerable geographical regions and industries facing acute attack rates. He states, "This data reveals which markets are most attractive to fraudsters and potentially profitable. We aim to contribute to the global reduction of identity fraud by sharing our analysis regularly."
Among the sectors analyzed, cryptocurrency and trading are the most heavily targeted, responsible for 47% of attacks in Q2. These industries are attractive to professional fraudsters due to their perceived high-profit potential and inherent anonymity. Payments are the second most targeted industry, accounting for 32% of attacks, followed by commerce at 12%. Banking accounts for only 2% of attacks, likely due to the assumption that financial institutions invest more significantly in robust protective measures compared to retailers and payment providers.
