Covid Effect: Global Fraud Rises 46%

Covid Effect: Global Fraud Rises 46%

April 1, 2021

Digital fraud attempts against businesses worldwide increased 46 percent in the 12 months starting in March 2020, compared to the previous year (March 2019 to March 2020), according to a new report from TransUnion.

In its Global Consumer Pulse Study, the data aggregator and credit bureau said the number in the U.S. only was an increase of 22 percent.

“Fraudsters are always looking to take advantage of significant world events. The Covid-19 pandemic and its corresponding rapid digital acceleration brought about by stay at home orders is a global event unrivaled in the online age,” said Shai Cohen, senior vice president of Global Fraud Solutions at TransUnion. “By analyzing billions of transactions we screened for fraud indicators over the past year, it has become clear that the war against the virus has also brought about a war against digital fraud.”

For retailers, the report found that fraud had increased nearly 39 percent and the top type of fraud during the past year was promotion abuse. Merchants in the gaming (48 percent), gambling (55 percent), telecom (58 percent) and marketing (81 percent) sectors had even steeper increases in fraud.

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