A Report by CYS Global Remit FinTech Development Unit
Fraud and identity theft pose tough challenges for compliance functions. In this article, originally published by Fintech News Singapore, CYS Global Remit FinTech Unit will explore these issues in the coming weeks.
In today's digital world, combating financial cybercrime is more important than ever. In 2024, the fight against fraud will be crucial as tactics evolve. Major trends in fraud and identity theft were being discussed among companies like SumSub, LexisNexis Risk Solutions, Feedzai, and Jumio, and their insights revealed unimaginable fraudulent impersonation and state-of-the-art scamming approaches.
Sophisticated Scams Dominate the Fraud Landscape
BioCatch’s report uncovers a startling surge in financial cybercrime in Asia-Pacific (APAC). With scams accounting for 54 percent of all cases, there’s a 200 percent increase in voice scams from the previous year. These crimes are growing more sophisticated, using human-centric coercion and remote access tools, underscoring the challenging reality for digital banking security.
The digital economy in Southeast Asia, expected to reach US$100 billion, presents both opportunities and risks. While it fosters prosperity, it also makes the region vulnerable to cyberattacks. Companies in the region have reported a 28 percent increase in cyber threats, emphasizing the pressing need for strong cybersecurity measures. Addressing such advanced identity fraud will be a top priority across APAC in 2024.
APAC Nations Face Unique Fraud Challenges
In the Jumio report, a concerning picture emerges for the Asia-Pacific (APAC) region, where significant challenges related to fraud and identity issues are on the rise. APAC has the highest fraud rate among all regions, hitting a worrying 3.27 percent. Even more concerning is the 24 percent increase from 2022 to 2023.
Feedzai reports that scams in APAC are a major concern, reflecting the complexity of a global pandemic. This is troubling given the region's trusting culture, which scammers exploit freely.
Phishing Attempts in Singapore
In Singapore, phishing attempts targeting local entities soared in 2022, with around 8,500 instances reported, a 175 percent jump from the previous year. Given APAC's importance to CYS Global Remit, it's crucial to understand and address these frauds and scam challenges with effective governance and risk controls.
In the next week, we will explore on a few fraud techniques.