The increased use of mobile devices by customers of financial institutions drove a 41 percent increase in fraud in 2021 compared to 2020, according to the results of a new study from NICE Actimize. And, like it has been for e-commerce merchants, account takeover attacks have been a main culprit in the acceleration of fraud.
The analysis, titled NICE Actimize 2022 Fraud Insights, found that more than 60 percent of all fraud attacks leveraging mobile devices were attempts at compromising online user accounts. And nearly half of all attempted fraud (46.9 percent) involved card-not-present transactions.
“Incidents of fraud against financial institutions and consumers continue to rise,” noted Craig Costigan, CEO of NICE Actimize. “For financial institutions to conquer these challenges, they must fully leverage data as the most important element of fraud prevention. World-class collective intelligence, with advanced analytics and AI, provides protections that safeguard banking channels while enabling more friction-free customer experiences.”
The report predicts that P2P transactions will come under increasing attack in 2022. The fraud rate for P2P transactions rose 38 percent last year.