A report by LexisNexis Risk Solutions highlights the key role of FinTech in shaping the landscape of digital fraud attacks globally, with a particular focus on the UK.
The report reveals a stark contrast between global trends and the UK’s approach to combatting digital fraud, showcasing the effectiveness of advanced FinTech solutions in mitigating risks.
Despite a concerning 19% increase in global digital fraud attack rates in 2023, the UK has demonstrated a significant decline in both human (-14%) and bot attack volumes (down by 29%) targeting organisations. This decline suggests the growing maturity of the UK’s FinTech ecosystem and the widespread adoption of sophisticated fraud prevention tools, which are instrumental in turning the tide against digital fraud attacks.
The report identifies a shift in tactics among criminals, with bonus abuse fraud emerging as the most prevalent attack type in the UK, increasing five-fold compared to the previous year. However, despite this shift, the overall attack rate in the UK remains remarkably low at just 0.2% of all transactions, compared to the global average of 1.5%.
Rob Woods, Director of Fraud and Identity Strategy at LexisNexis Risk Solutions, attributes the UK’s favourable position to the extensive adoption of tech-based fraud prevention solutions by financial institutions. He notes, “The UK’s favourable position is in large part due to volumes of ‘trusted’ customer traffic accessing UK digital banking services, particularly via mobile app. It is also in part thanks to UK institutions being ahead of the curve in adopting sophisticated tech-based fraud prevention solutions.”
Despite these advancements, the report warns against complacency, emphasizing the need for continued vigilance and collaboration within the industry. Woods urges for more extensive collaboration with regulators and big tech companies to detect and prevent fraud at its source.
In conclusion, the report underscores the pivotal role of FinTech in fortifying the UK’s defences against digital fraud and highlights the importance of ongoing innovation and collaboration to stay ahead of evolving threats.
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