As more consumers embrace online banking, fraud rate has risen to 150% globally / digital information world

People are now using digital methods for financial services because it is an easier and faster way to transfer money from one place to another. Especially, during the pandemic situation, more and more people are using the online method for their transactions such as online payments for purchases, fee payments and much more. Millions of dollars in online transactions take place every day, according to a report, and by 2021, digital payments could reach a value of $ 6.6 trillion.

Many criminals use different scam techniques. Data from Transunion shows that the rate of online fraud attempts against money transactions in the United States has increased by up to 109% compared to the online fraud rate in the last quarter of 2020, and if the we are talking about the percentage of online fraud fraud attempts around the world, it reaches almost 150%, which is an alarming situation.

The percentage of online financial frauds is increasing day by day and many financial institutions are using different methods to reduce fraud efforts, but there is still a long way to go. Scammers know that people and organizations use online methods for higher value transactions. The pandemic situation has also given rise to these financial transactions, and it has become the habit of most people to make transfers online. TransUnion released the percentage increase where around 40% of people use online platforms for most of their financial receipts and payments and 60% of people use financial apps on smartphones for financial transactions.

This data has been pulled from the intelligence of multi-billion dollar transactions and over 40,000 different websites and scam analyzes. The ratio of fraud in the industrial sector in the United States increased to 25% from the last quarter of the previous year to the first quarter of this year. However, the ratio of fraud efforts in these industries is not the same. If we look at the percentage of scam attempts worldwide from the last quarter of 2020 to the first quarter of this year, that percentage rises to 24%. This is a warning to all people using online applications for their monetary transactions and for organizations.

Researchers said that financial industries have the highest rate of identity theft scams in which the fake person steals the identity of a real person and commits different crimes. about 25%. The gaming industry lags behind at around 9% with the most common gold mining scam. However, insurance companies, logistics industries, and monetary retail have seen a reduction in fraud attempts from the last year of 2020 to May 1 of this year.

Take a look at the infographic below for more information:

Read more: New report reveals phishing attacks increased in the first quarter of 2021 compared to the quarter of last year