CHICAGO, Aug. 10, 2022 (GLOBE NEWSWIRE) — For the second quarter in a row, the number of suspected digital fraud cases worldwide in the insurance industry increased year-over-year, increasing 159% between Q2 2021 and Q2 2022. This follows an increase of 134% between Q1 2021 and Q1 2022. Despite the rise in fraud in the insurance industry, TransUnion’s (NYSE:TRU) quarterly fraud analysis noted an increase in suspected cyber fraud attempts in industries around the world. about -14% between Q2 2021 and Q2 2022.
TransUnion arrived at its fraud insights against businesses based on intelligence from billions of users and more than 40,000 websites and applications within its identity verification, risk-based authentication and fraud prevention solutions – TransUnion TruValidate™. The percentage or number of suspected digital fraud attempts that TruValidate’s customers rejected or evaluated for fraudulent activity compared to all transactions that were evaluated as fraudulent.
Industries that have seen the biggest drop in digital fraud risk from Q2 2021 to Q2 2022 include sports, travel, entertainment, and retail. TransUnion only saw an increase in insurance and transportation during this period. For data from the US, TransUnion only reviewed the number of suspected cyber frauds in the insurance and logistics sectors year-over-year. However, the increase in insurance was much lower than in the rest of the world, rising by 22% comparing Q2 2021 to Q2 2022. Logistics increased by 15%.
First-party fraud was the most common form of insurance fraud affecting the industry. This type of fraud involves fraudulent activities that contain intentionally false or altered information provided by the owner for the purpose of receiving certifications, lower prices or better policy/contract terms.
“We have seen some interesting developments in the first half of 2022 with suspected fraud in the insurance industry continuing to rise in the first six months of the year,” said Shai Cohen, senior vice president of global fraud solutions at TransUnion. “In recent years, we’ve seen fraudsters change their company lookup every quarter. At this time, we believe that insurance companies are seeing ‘less fraud’ because some consumers may be misrepresenting their policies in order to save money, especially in a time of rising inflation. for the trees that put their purses.”
Fraud Tests Considered to Move to New Industries Around the World
|Companies||Price Changes from Q2 2021 to Q2 2022|
|Communities (online dating, forums, etc.)||-8%|
|Travel & Entertainment||-28%|
The Change in Fraud in the U.S. Is Very Similar to Global Trends
Overall, the number of suspected cyber fraud cases across all industries has decreased by approximately -19% YoY from Q2 2021 to Q2 2022 in the United States. TransUnion saw the biggest declines from US traffic in gaming (-65%) and gambling (-49%). Manufacturing (-32%) and financial services (-28%) also fell.
Although insurance and transportation were the only industries that saw an increase, the types of fraud were very different. When insurance focused on applicant fraud, traffic was high with referral fraud. This is a type of fraud where the buyer steals the shipping address or the seller receives payment for the product or service, but does not ship it to the buyer.
Digital fraud continues to permeate the lives of many US consumers. TransUnion’s most recent Consumer Pulse survey found that nearly four in 10 (38%) American adults say they have experienced digital fraud. And 11% committed fraud such as fraud, theft or other forms of fraud.
“For industries facing a steady stream of fraudulent activity, the goal has been to identify the most effective transactions with customers to allow them to pass through with minimal friction,” said Sean Donnelly, senior vice president and global fraud solutions at TransUnion. “Strong fraud and verification systems reduce false positives and focus anti-fraud measures on the few that need to be evaluated. By reducing manual screening and customer inquiries, organizations can reduce costs, increase revenue, and improve customer experience. “
For global and regional information on how many suspected digital fraud attempts have changed recently, what types of fraud are most 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 this Information for Good®.
With a leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create economic opportunities, better experiences and empower hundreds of millions of people.