AU10TIX Q1 2024 Global Identity Fraud Report Identifies Online Gaming Industry as New ID Fraud Hotspot
This marks the first time that AU10TIX has recorded such high fraud numbers in the online gaming sector. 50% of the attacks were identified as "bonus abuse," which involves the creation of multiple accounts to exploit promotional bonuses granted to new members. AU10TIX analysts believe that this increase may be the result of online gaming's appeal to young people. They expect the sector share of fraud to decrease after more gaming platforms comply with new regulations and implement more comprehensive KYC and age verification solutions.
Fraudsters have also increasingly targeted the payments sector over the past year, viewing it as a soft target due to its limited regulation. Since Q1 2023, its share of overall global identity fraud has grown from 39% to 62% -- a 59% increase. AU10TIX analysts expect this trend to continue until the sector becomes more regulated.
AU10TIX's report also compares the frequency of different fraud documents and modes, including document number, personal data, face picture, image template, and facial image capture (selfie). US passport ID cards continue to be the most forged documents, because they are easy to synthesize with deepfake technology and bypass monitoring systems undetected. As in previous quarters, fraud involving selfie capture represented less than 5% of attacks, repeatedly proving to deter attempts at identity fraud.
"Organized criminal groups are increasingly using AI to commit large-scale, coordinated identity fraud," said
AU10TIX's Q1 2024 Global Identity Fraud Report offers three actionable insights to help organizations protect against identity fraud:
- Selfies stop fraud! Fraudsters find facial image capture an extremely difficult verification method to circumvent.
- Gaming providers can eliminate bonus fraud and ensure compliance by implementing robust KYC and age verification.
- Payments providers should strengthen their own KYC, KYB and AML protocols in the absence of strict regulations.
About AU10TIX
AU10TIX plays a pivotal role in establishing trust between individuals/companies and digital systems. Founded in 2002, it is the global leader in identity verification and management, protecting the world's largest brands against advanced fraud. The company's future-proof product portfolio helps businesses provide frictionless customer onboarding and verification in 4-8 seconds while staying ahead of emerging threats and evolving regulatory requirements. AU10TIX offers the world's only 100% automated global identity management system, as well as the industry's only solution that can detect organized mass attacks by analyzing traffic patterns and cross-checking data in a consortium of more than 60 major companies. With its deep roots in airport security, AU10TIX has authenticated billions of identities and prevented over
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SOURCE AU10TIX