An analysis by global information and insights firm, TransUnion has revealed that the fraudsters in India are refocusing their efforts to the travel and leisure, communities (online forums) and logistics industries from financial services. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps having traffic coming from countries across the globe, including India. TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail and travel and leisure, among others.
As the prevalence of digital fraud attempts on businesses and consumers continues to rise globally, the quarterly analysis found that the rate of suspected digital fraud attempts rose 16.5 per cent globally when comparing Q2 2021 to Q2 2020 across industries. When comparing Q2 2021 to Q2 2022, gaming and travel and leisure were the two most impacted industries globally for the suspected digital fraud attempt rate, rising 393 per cent and 155.9 per cent in the last year, respectively. However, for transactions coming from India the percentage of digital fraud attempts decreased at a rate of 49.20 per cent during the same time period. For transactions originating in India when comparing these same time periods, this rate rose 53.97 per cent for gaming and 269.72 per cent for travel and leisure.
Commenting on the report, Shai Cohen, Senior Vice President of Global Fraud Solutions, TransUnion said that fraudsters tend to seek out industries that may be seeing an immense growth in transactions. “It is quite common for fraudsters to shift their focus every few months from one industry to another. This quarter, as countries began to open up more from their Covid-19 lockdowns and travel and other leisure activities became more mainstream, fraudsters clearly made this industry a top target. The growth in communities and gaming fraud also can be attributed to the shifts in focus of fraudsters as these growing markets become a larger target,” he mentioned.
Cohen further added that travel and leisure has increasingly become a target as the industry recovers and fraudsters are looking to capitalise as more transactions return to this industry in India post the unlocks. He said, “As fraudsters continue to target consumers, it’s incumbent on businesses to do all that they can to ensure their customers have an appropriate level of security to trust their transaction is safe all while having a friction-right experience to avoid shopping cart abandonment. The pandemic accelerated community (i.e., online dating) and online retail transactions which require logistics and fraudsters have recognised this.”