Canadian Digital Fraudsters Are Increasingly Targeting Insurance Companies in the First Half of 2022

TransUnion

TransUnion has confirmed that Canadian fraud attempts rose 125% against the insurance industry in Q2 2022 – despite a 37% decline across all industries during that period.

TORONTO, Ontario, Sept. 22, 2022 (GLOBE NEWSWIRE) — According to TransUnion Canada’s TruValidate survey, for the second quarter in a row, the number of suspected fraud cases worldwide in the insurance industry rose year-on-year. – year base, an increase of 159% between Q2 2021 and Q2 2022 (+ 125% from Canada). This follows a 134% increase worldwide between Q1 2021 and Q1 2022 (+ 151% from Canada). Although the rise of fraud in the insurance industry is increasing, TransUnion (NYSE:TRU) quarterly fraud analysis observed that the number of digital fraud attempts worldwide decreased by approximately -14% between Q2 2021 and Q2 2022. In Canada, suspected digital fraud attempts decreased -37% during the same period.

TransUnion saw a decrease in the number of suspected computer fraud attempts from Canada in several industries including: gaming (-66%), financial services (-52%), retail (-31%), telecommunications (-13%) ), travel and leisure (-6%) and goods (-3%).

In contrast, the only industries beyond insurance that experienced an increase in digital fraud attempts from Canada year over year in Q2 2022 included areas such as online dating, forums, and more. (+10%) and gambling (+8%). However, the types of corruption in each of the three industries were quite different. First-party applicant fraud was the most advanced insurance fraud to affect the industry. This type of fraud involves the fraudulent use of information that contains intentionally incorrect or altered information provided by the owner for the purpose of obtaining certifications, lower prices or better policy/contract terms. While some communities were concerned with fake profiles, where users posted false information and/or used fake photos.

“In recent years, we’ve seen fraudsters change their businesses every quarter because they realize that businesses have put in place more control measures. These fraudsters are like worms – they’re always changing,” said Patrick Boudreau, head of fraud information and strategy at TransUnion Canada. . “We have seen a trend in the first half of 2022 where people suspect that fraud in the insurance industry is increasing in the first six months of the year. At this time, we believe that the insurance industry is seeing ‘soft fraud’ – meaning that the policyholder misrepresents information or other events in order to reduce the amount they pay. It may be that some consumers are misrepresenting their policies in an attempt to save money, especially in high inflation environments that put more pressure on their wallets.”

Digital fraud continues to permeate the lives of many Canadian consumers. The latest information about TransUnion Consumer Pulse The survey found that nearly 3 in 10 (31%) Canadian adults reported that they have tried digital fraud. And 7% committed fraud such as fraud, theft or other forms of fraud.

Digital Fraud Trials Considered Transferring to New Industries Globally Against Canada

Companies

Canadian Price Changes from Q2 2021 to Q2 2022

Global Price Changes from Q2 2021 to Q2 2022

Insurance

+125%

+159%

Communities (online dating, forums, etc.)

+ 10%

-8%

Gambling

+8%

-14%

Driving style

-3%

+ 13%

Travel & Entertainment

-6%

-28%

Telephones

-13%

-12%

That’s it

-31%

-28%

Financial Services

-52%

-22%

Sports

-66%

-63%

“The digital boom brought about by this pandemic has spilled over into industries that used to operate online, which fraudsters are trying to take advantage of,” Boudreau said. “At the same time, companies that are finding that fraud is becoming more common, the focus has shifted to identifying the “good” that has happened and helping them not to die with less conflict. For many industries and businesses, it is difficult to plan to implement security measures to help eliminate potential fraud – without creating conflicts for customers their real ones. Strong fraud and verification systems can reduce the quality of false claims and focus anti-fraud tools on the few that need to be evaluated. By reducing manual checks and customer inquiries, organizations can reduce costs, increase revenue and improve the customer experience.”

About the Study
TransUnion came to its conclusions about fraud against businesses by drawing on billions of dollars of intelligence and more than 40,000 websites and applications in its proprietary proof-of-concept, risk-based authentication and anti-fraud solutions – TransUnion TruValidate. The percentage or number of suspected digital fraud attempts and those that TruValidate customers rejected or evaluated for fraud indicators compared to all transactions that were evaluated as fraud.

With global and regional disruptions around how many suspected digital frauds have changed recently, what types of fraud are prevalent in certain industries and more, please download the infographic.

About TransUnion (NYSE: TRU)
TransUnion is a global information and communications company that makes reliability possible in today’s economy. We do this by providing a realistic picture of each person so that they can be reliably represented in the market. As a result, businesses and consumers can act with confidence and achieve great things. We call it Information for Good.® TransUnion provides solutions that help create financial opportunities, better experiences and empower hundreds of millions of people in more than 30 countries. Our customers in Canada include the country’s largest banks and card issuers, and TransUnion is the provides extensive credit reporting, fraud, and solutions for financial, sales, communications, utilities, government and insurance.

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Emma Tiessen

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