Identity fraud cases increased by 109% in 2021

Last year saw a 109% increase in identity fraud cases, according to a new report from payment intelligence company Fraugster.

The report also found a 70% rise in gift card fraud and a 52% increase in account takeover attacks.

Worryingly, Fraugster stated that around €80bn was lost to online fraud across physical and digital goods in 2021.

The study claims that total direct fraud losses for digital goods (consisting of gaming, gambling and gift cards) amounted to €3.5bn in 2021, with over €13.7bn worth of genuine transactions lost due to false positives.

Last year also saw 80 institutions receive AML fines, with a combined value of €2.5bn.

Fraugster released the ‘Payment Intelligence Report 2022’, which offers insights into compliance, fraud risk and revenue uplift trends. It includes insights generated from information from 60 billion data points and 80 million individual transactions.

Its new report also offers insights around chargebacks. It stated that 46% of the total chargebacks were filed within a span of 60 days. Furthermore, the total cost of chargeback to the merchant is 2.9x the value of chargebacks.

Find the full report here.

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