Fintech
Fintech Fraudlympics: Brazil, Bangladesh and South Africa win medals in the sector’s fraud rankings
Fintech Fraudlympics: Brazil, Bangladesh and South Africa win medals in the sector’s fraud rankings
Suma global full-cycle verification platform, has launched the “Fraudlympics 2024”, using new data to reveal which nations have seen the biggest increases in:
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Fraud by type: identity theft, forced verification, deepfake.
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Document Fraud: Identity Fraud – via Proof of Address, Driver’s License, Passport, ID Card
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Fraud by Industry: iGaming, Cryptocurrency, and Fintech.
Overall, Nigeria is the overall winner, with the highest spike in fraud rates across all sectors and all fraud types, followed by China and Indonesia.
Based on customer verification data, Sumsub compared internal data from the first half of 2024 with the same period in 2023. The verification and fraud solutions provider analyzed fraud rates across a range of different fraud types and industries. Countries with the highest growth rates in each received a “gold medal,” while the following nations received “silver” and “bronze.”
European Champions:
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Portugal wins gold in document fraud via proof of residency documents, at 512%
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Poland ranked fifth in deepfake growth, with 172%, while Italy ranked seventh (98%), Spain ninth (53%) and Germany tenth (32%).
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Italy ranks fifth for growth in address proof fraud, with a 121% increase, and tenth for growth in driving license fraud, with a 221% increase.
According to Sumsub’s ranking, Nigeria received three gold medals, with the highest fraud growth in identity theft rates (748%) and forced verification (1091%), as well as the highest growth rates in the cryptocurrency sector (1056%). China and Indonesia both received three medals in total, including one gold medal each for deepfake fraud (964%) and identity theft (748%), respectively.
However, China ranked “higher” than Indonesia after coming in second in ID card fraud (367%) and cryptocurrency fraud growth (318%). This compares with Indonesia’s second place in driver’s license fraud (325%) and third place in cryptocurrency fraud growth (275%). Turkey also came in second in forced verification (652%) and third in both identity theft (390%) and driver’s license fraud (315%). Brazil led in fintech fraud increases (918%), with Afghanistan leading in passport fraud (522%).
“At Sumsub, we analyze new fraud data at various times throughout the year, especially our annual Sumsub Identity Fraud Report toward the end of the year. Ahead of the competition, we wanted to raise awareness of fraud trends in a lighthearted way, while highlighting serious concerns,” said Vitaly Gribanov, Brand & Creative Director at Sumsub. “Fraud techniques are becoming increasingly sophisticated and widespread across multiple business sectors. As this continues, we remain committed to raising awareness so businesses can adapt and mitigate risks.”
Fraud tactics continue to evolve in 2024, with one of the biggest trends in AI-powered, fabricated audio and video content: “deepfakes.” For example, recent internal data revealed a Deepfake Fraud Cases Increase 245% Year-Over-Year GloballyAs AI technology advances, deepfake fraud is expected to become more widespread and harder to detect.
“The number and quality of sophisticated fraud types, such as deepfakes, are increasing and evolving every day around the world. Even with the most advanced technology, it is becoming much more difficult to distinguish between a deepfake and reality. The only way out is to fight AI-based fraud with AI-based solutions,” said Pavel Goldman-Kalaydin, Head of AI and ML at Sumsub. “In today’s digital world, know-your-customer (KYC) checks alone, during user onboarding, are not enough. The industry requires a holistic approach to combat the rise of fraud at every stage of the user journey. For businesses, the best protection is a multi-layered fraud solution with multiple checks across the entire customer lifecycle.”