Digital Identity Fraud Primarily Via Web Channel in 2021: Shufti Pro Report


The overall rate of digital identity and financial fraud jumped to 37% of attempted transactions in 2021, from just 20% in 2020, according to new research from Shufti Pro. the Shufti Pro 2021 Fraud Report shows that biometric fraud was a component of approximately one in five attacks. Android was much more frequently used to attempt fraud than iOS, but more than three-quarters of fraud attempts (78%) came from the web.

The report suggests an overall increase not only in attack volumes, but also in sophistication.

The frequency of identity document fraud as a share of total incidents fell sharply in 2021 compared to the previous two years, but even though the total number of fraud attempts increased, biometric fraud attempts decrease slightly from approximately 22% to 20% of all observed incidents. by Shufti Pro.

More than half of digital fraud attacks in Sudan, Kenya, Cameroon and Ethiopia involved biometric fraud, according to the report. Biometric fraud rates actually dropped significantly as a share of the total in the US and Europe, perhaps suggesting more mature deployments with liveness detection.

Fines against banks for failing to comply with know-your-customer (KYC), anti-money laundering (AML) and data privacy regulations also continued, totaling 937.7 million dollars in the first half of 2021.

In cryptocurrency, Shufti Pro found that fraud increased by more than 500% in one year. Of all stolen crypto funds, 72% came from DeFi protocols.

Charities have also seen an increase in fraud rates, but at 16% the difference is stark.

The report also discusses fraud trends in fintech, online dating, gaming, gambling and carpooling.

The effect of the pandemic is considered and new fraud techniques encountered over the past year are reviewed.

Many digital identity criminals have turned to passports, and more specifically the manipulation of the MRZ code, to spoof identity document verification processes. Attempts with photoshopped and expired ID documents increased in 2021, and although Shufti Pro observed higher quality templates for fake ID documents for sale on the dark web than previously available, the company claims that this approach is no match for a robust AI document verification system. .

New fraud attempts observed during the year include uploading documents with reflected light obscuring the information they contain, which is also still rejected by Shufti Pro, according to the report.

The report concludes with predictions about fraud trends to expect in 2022, such as more synthetic identity and deep fraud attacks, and an increased focus of fraudsters on remote workers.

Article topics

AML | biometric liveness detection | biometrics | digital identity | verification of documents | financial services | fraud prevention | identity verification | KYC | Shufti Pro


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