SEON finds that a recent shift from physical branches to digital banking has changed the world of online and mobile fraud, making the need for effective fraud prevention solutions more important than ever before.
Notably, the new review by SEON found:
- Online banking fraud accounted for the largest proportion of US fraud in 2021 and 2020
- For US retail, mobile fraud now accounts for 27% of the total fraud cost, which is a 19% increase
- The number of cyberattacks has almost doubled since 2021
With new ways of accessing, buying, and exchanging money online, the threat of fraud to all banks, organizations and individuals has never been higher. Now, online fraud fighters, SEON, has revealed how companies across the sector are dealing with the growing challenge in its comprehensive new report, entitled: ‘Global Banking Fraud Index: The Cost of Fraud to Banks & Organizations’.
The new report, which was drafted by SEON’s Product Evangelist, Gergo Varga assesses how fraud is impacting banks, organizations and individuals across the United States, and the United Kingdom. Using data from S&P Global, LexisNexis, Guidehouse, Identity Fraud Research Center, KPMG and Action Fraud, the new report paints a comprehensive picture of the cost of fraud to financial institutions in 2022.
Through this research, SEON reveals that the total cost of fraud has steadily increased over the last three years in the US. In the UK, banking fraud has shown similar growth, with this type of attack happening 66% more in 2021 than in 2020. As part of its efforts to help mitigate the effects of online fraud, SEON’s report concludes with several relevant pieces of fraud prevention best practice that individuals and companies should follow.
Speaking on the new report, Gergo commented: “Fraud continues to be an expensive issue, especially within the banking and financial services sector. Every $1 lost to fraud costs businesses in the US around $3.60 to address, for US Financial Services specifically, that figure is closer to $4. Considering growing economic pressures, it’s now paramount that businesses do all they can to avoid incurring these costs before they happen.
“Alongside documenting some of the most significant increases in different forms of fraud, the new report highlights the general direction that fraud is trending in within the United States, and the United Kingdom. As the report explains, the pandemic has clearly pushed consumers and fraudsters towards digital transactions, which has in turn, resulted in a major surge in mobile fraud that must be recognized by businesses and consumers alike.”
The new report is available on SEON’s website. The document forms part of the company’s comprehensive, and growing content portfolio, which contains articles, case studies and guides that cover a myriad of topics within the world of online fraud prevention and cybersecurity. The company is now actively working on several additional reports, which will further breakdown the threat of online fraud in 2022.