Article: Feedzai’s Financial Crime Report: Fraud rises by 159% Year on Year

Article - Media, Publications

Feedzai’s Financial Crime Report: Fraud rises by 159% Year on Year

Feedzai Inc, 02 June 2021

SAN MATEO, Calif. and LONDON, June 02, 2021 (GLOBE NEWSWIRE) — Feedzai, the world’s leading cloud-based financial crime management platform, has announced its Quarterly Financial Crime Report , an analysis of over 12 billion global banking transactions from January – March 2021. The report identifies trends in spending and in fraud attempts to show that this past quarter, as consumer activities increased, fraudsters attempted to hide their fraudulent transactions in legitimate banking. In fact, combining all banking fraud – internet, telephone, and branch – attacks grew a whopping 159% in Q1 2021 compared to Q4 2020.

Online banking made up 96% of all banking transactions and it accounted for 93% of all fraud attempts in Q1 2021. This leaves in-branch and telephone banking to make up the remaining 4%. And while the numbers are smaller, in-branch banking did increase by 442% this quarter compared with the last as a result of eased lockdown restrictions as businesses begin to open for trade. In addition, telephone scammers upped their efforts and the report shows a 728% increase in telephone banking fraud.

While many shoppers choose to make purchases from the comfort of their mobile phones, the report also found that Android users are more likely to experience fraud. Of the total volume of fraudulent transactions, 34% were conducted on iOS, and nearly double (66%) were attributed to Android. Despite a disproportionately higher total transaction volume on iOS, Android devices still made up for two thirds of fraud attempts. The report notes that two possible causes for this are Android’s open approach to support third-party app stores, which is more conducive for mobile malware, along with Apple’s penchant for controlling apps on the App store.

Read Full Article