Identity fraud doubles in crypto and banking in 2022

Identity fraud doubles in crypto and banking in 2022

Identity fraud has doubled in crypto and banking during 2022, as a new report on fraud shows the worrying state of attacks.

The finding comes from the second annual Identity Fraud Report from Sumsub, a global verification platform providing customizable KYC, KYB, transaction monitoring, and AML solutions.

Another of the other key findings of the report is that 55.8% of all identity fraud occurs in five countries – with 5.1% in the USA alone.

Some of the other findings are that e-sports has the highest fraud incidents with a 2.9% share of total cases, payment fraud increased by 40% in 2022, ID cards are the most forged document type in 2022 (representing eight in ten) and 79% of all forged documents used male personas in 2022.

The research found that over half of fraud cases happened in five countries. These are, Bangladesh (22%), Pakistan (15.2%), Vietnam (8.1%), Nigeria (5.4%) and the USA (5.1%).

Sumsub explained that in 2021, payment and consulting were the most targeted sectors. However, focus has since shifted to the e-sports sector. E-sports, which are a form of competitive video gaming, experienced 2.9% of all fraud cases in 2022.  

 Fraud has also increased in the crypto and banking sectors. It stated that fraud in the crypto industry increased from 0.7% to 1.5%.

Looking ahead to 2023, Sumsub expects deepfakes to become an even greater threat. It also believes AI technologies will help fraudsters become even more advanced.

Sumsub co-founder and CTO Vyacheslav Zholudev said, “In 2023, we expect developing countries to lead the fraud charts due to the vulnerability of local documents. It is also likely that the crypto, trading, and e-commerce industries will take the biggest hit from criminals using advanced fraud tools.

“Staying up to date with the recent antifraud developments will be crucial for companies operating online. Sumsub will be looking carefully into the changing identity fraud landscape, and we update our product solutions accordingly to ensure 100% fraud protection for our global clients.”

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