ATLANTA, Feb. 23, 2021
/PRNewswire/ -- LexisNexis® Risk Solutions released its
biannual Cybercrime Report covering July
2020 through December 2020,
which details how the evolving threat landscape created new
opportunities for cybercriminals around the world, particularly as
they targeted new online users. Analysis shows that the under 25
age group is most vulnerable to fraud attacks while the oldest age
group is second most vulnerable and loses the most money. The stark
risk at both ends of the age spectrum emphasizes the importance for
companies to protect both new-to-digital and vulnerable customers
when transacting online in 2021. The report also provides a full
year review which highlights how 2020 saw an overall decline in
human-initiated attacks, while bot attacks accelerated.
The Cybercrime report analyzes transaction data from the
LexisNexis® Digital Identity Network®, a repository of global
shared intelligence gained from billions of consumer interactions
including logins, payments and new account applications. The
Digital Identity Network® processed 47.1 billion transactions in
2020, an increase of almost 12 billion year-over-year. The fraud
attack rate observed in the Digital Identity Network decreased on
average across all digital businesses year-over-year, although
media companies saw an increase in the overall attack rate at
account opening.
Malicious attack vectors persist despite reduced attack rates
recorded across businesses as automated bot attacks offer
fraudsters a cheap, quick and effective method of initial attack.
The study analyzed 24.6 billion transactions July through
December 2020 and found that mass
automated bots used to test identity credentials remain widespread.
The Digital Identity Network recorded bot attacks across global
regions and within a wide variety of industries and use cases.
Likewise, new account creations continue to see high attack rates,
representing a key point of entry for fraudsters looking to
monetize credentials harvested from data breaches.
Key Findings from the LexisNexis Risk Solutions Cybercrime
Report:
- 2020 in Review: Rapid Growth in Digital Transactions Sees
Human-Initiated Attacks Drop While Bot Attacks Increase – The
number of human-initiated attacks dropped in 2020 by roughly 184
million while the number of bot attacks grew by 100 million. In
both cases, the largest number of fraud attacks by volume
originated from fraudsters located in the
United States, with countries like Canada, the United
Kingdom and Germany also
fitting into the top ten countries for each attack method. Notably,
growth economies increasingly contributed to the number of fraud
attacks with rises in human-initiated attacks originating from
Guatemala, Bahrain and Zimbabwe and a larger number of bot attacks
coming from the Isle of Man,
United Arab Emirates and
Nigeria.
Sixty seven percent of all transactions were via mobile channels,
with much of the transaction growth coming from trusted
customers.
- July through December 2020:
Cybercrime Across Generations – With many
new-to-digital customers coming online for the first time, the
youngest age group of online users – were found to be the most
susceptible to fraud attacks over the six month period. Analysis
found that there was a 10% growth in new customers among the under
25 age group.
The oldest age group – 75 and older – experienced the next highest
attack rate. This group generally has less familiarity with the
latest digital technologies and may be more susceptible to scams
and phishing attempts. While millennials and Gen Z are most
susceptible to fraud attacks, the average fraud loss per customer
increases progressively with age, likely influenced by larger
disposable incomes later in life.
The paradox of why fraudsters choose to target the younger age
group in proportionally higher volumes is perhaps explained by the
fact that higher success rates can offset lower monetary gains.
- July through December 2020:
The Cybercrime Landscape Across Industries –The Digital
Identity Network found a 29% growth in global transaction volume in
the second half of 2020 compared to the second half of 2019. This
growth came in the financial services (29%), e-commerce (38%) and
media (9%) sectors.
Financial services saw low overall attack rates, driven by a high
volume of repeat login transactions from trusted customers, with
the exception of payment transactions, which saw attacks at a
higher rate than any other industry. This presents a key
opportunity for fraudsters to cash out.
E-commerce saw the largest growth in bot volume in comparison to
other industries. The 2.7% attack rate for mobile app e-commerce
payments is higher than any other industry. This represents an
evident point of risk for these businesses.
New account creations for media companies were attacked at a higher
rate than any other industry with fraudsters often using media
organizations like streaming services, gaming and gambling sites
and apps to test stolen identity data.
"Cybercriminals are opportunists first and masters of disguise
second. They are always on the lookout for a new target whether
this is new lines of credit, new online businesses or
new-to-digital consumers," said Rebekah
Moody, director of fraud and identity for LexisNexis Risk
Solutions. "While digital businesses are working hard to better
provide for new and existing customers, they must identify and
mitigate potential risks moment by moment in order to protect
consumers from becoming victims of fraud.
"Building a layered defense is key," Moody continued. "Uniting
the best digital identity intelligence with physical identity
solutions and behavioral biometrics intelligence can be the
gamechanger that organizations need to lessen the unpredictable
tides of fraud.
"Digital identity intelligence in particular is crucial for
businesses to understand the behavior, transaction history and
device intelligence of each identity entering their environment.
When we can crowdsource real time intelligence across global
digital businesses, it offers an unparalleled view of trust and
risk. This creates a low-friction online experience because
businesses can better recognize trusted, returning
consumers."
Download a copy of the LexisNexis Risk Solutions Cybercrime
Report, July through December 2020.
Join a global webinar on March 23,
2021 with Rebekah Moody,
director of fraud and identity, highlighting the latest Cybercrime
Report findings.
About LexisNexis Risk Solutions
LexisNexis® Risk
Solutions harnesses the power of data and advanced analytics to
provide insights that help businesses and governmental entities
reduce risk and improve decisions to benefit people around the
globe. We provide data and technology solutions for a wide range of
industries including insurance, financial services, healthcare and
government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information-based analytics and decision tools for
professional and business customers. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Marcy
Theobald
678.694.6681
Marcy.Theobald@lexisnexisrisk.com
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