As 2020 draws to a merciful close, rising fraud is one of the many challenges that made the year difficult. The U.S. rode Covid-19 to the highest fraud rate in the world, beating out Vietnam and Nigeria, according to a recent report from identity verification technology provider Veriff.
The Veriff Fraud Report 2020 noted the obvious effect the global pandemic had on fraud rates. Increased online activity resulted in fraud rates that were three times higher than last year in both the fintech and mobile sectors, the report found. The authors noted that much of the fraud in the online space consists of bad actors using synthetic identities to perpetrate new account fraud and account takeover fraud.
“The 2020 Coronavirus pandemic led to a huge rise in the adoption of digital solutions, changing the way that many industries operate—and the ensuing lockdowns led to a massive increase in online activity, with fraud rates following suit,” the report’s authors wrote. “Veriff saw fintech fraud more than triple in spring ‘20 during the initial Covid outbreak, reaching over 5 percent at times as people moved their activity online.”