Study links first-time users to digital abusers

Newly minted digital consumers have created a fertile playing field for fraudsters, according to a newly released LexisNexis Risk Solutions Cybercrime Report. Published Sept. 15, 2020, the study analyzed more than 22.5 billion recent transactions in the LexisNexis Digital Identity Network, finding a 37 percent increase over the previous year's activity. Researchers attribute changing consumer habits to transaction growth throughout the ongoing COVID-19 pandemic.

Rebekah Moody, director of fraud and identity at LexisNexis Risk Solutions, summarized findings as pandemic-fueled opportunism. “Fraudsters look for easy targets: whether government supported packages, new lines of credit or media companies with fewer barriers to entry,” she said. “We need to ensure that all consumers, especially those who might be new to digital, are protected.”

Moody recommended implementing multilayered security strategies to protect against what she described as “a full spectrum of possible attacks and evolving threats.” While overall attack volumes are down worldwide, the network has seen rising incidents of new account fraud and networked ecommerce fraud, particularly in the U.S. region, she noted.

Fraud’s global footprint

Kimberly Sutherland, vice president of fraud and identity strategy at LexisNexis Risk Solutions, pointed out that the Digital Identity Network provides participating companies and individuals with shared global intelligence to all participants,

“In our recent True Cost of Fraud report, which surveyed retail and e-commerce merchants, respondents reported an overall increase in fraud attempts and confirmed fraud,” Sutherland said. “This is contrary to what the Digital Identity Network identified, with a 61% decline in the attack rate for U.S. e-commerce merchants.”

These data points suggest consumers, as well as enterprises, may benefit from LexisNexis Digital Identity Network’s shared global intelligence and layered security, which help mitigate fraud rates, she stated.

Following are additional highlights from the LexisNexis Risk Solutions Cybercrime Report:

• Lower number of attacks: Overall attacks across the Digital Identity Network were down by 33 percent over 2019, except in Latin America, which experienced the highest attack rates globally between March and June 2020. Breakdowns by sectors show 23 percent decline in financial services and a 55 percent decline in ecommerce attack rates. 

• Mobile browser vulnerability: Human-initiated cyberattacks in the Digital Identity Network increased by 3 percent in mobile browser transactions. 

• Automated bot attacks: Globally, automated bots have surged in financial institutions on the Digital Identity Network. The banking sector experiences more bot attacks than any other industry, researchers noted.

• New account fraud: New account creations are accelerating at a higher rate than any other transaction type in the digital customer journey. Analysis of new customer touchpoints in the online journey is included in the report for the first time, providing additional insight on money transfers, password resets and COVID-19-related lending currently being offered.

• Ecommerce fraud: Online payments had the largest volume of attacks, compared with other use cases. Digital payments and several other popular attacks such as first-party chargeback fraud and account takeover attacks that use identity spoofing were also reported.

In-depth analysis available

LexisNexis Risk Solutions published a video summary of the Cybercrime Report in its ongoing Digital Identity Summit Virtual Series. The latest episode, published Sept. 15, includes Moody’s overview of key findings and emerging threats. Free registration is available at gateway.on24.com/wcc/eh/2422888/lp/2451853/the-changing-face-of-cybercrime/.

For a free copy of the LexisNexis Risk Solutions Cybercrime Report visit risk.lexisnexis.com/insights-resources/research/cybercrime-report

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