Security News > 2020 > December > Unsophisticated fraud attacks increase, first-time fraudsters more prevalent

The risk of identity fraud has increased significantly with attacks occurring more frequently since the start of the pandemic, Onfido reveals.

Over the past 12 months, the average identity document fraud rate increased by 41% over the previous year as first-time fraudsters appear to be more prevalent, likely due to increased economic hardships during the pandemic.

The increase is largely reflective of the significant spike in fraud since April 2020 when most of the world was entering the first phase of lockdown, as rates remained stable during the first few months of the year.

This year, the proportion of unsophisticated fraud grew 23% year-over-year, from 57% in 2019's Fraud Report to 70%. Given that the amount of sophisticated attacks stayed the same, at under 1%, this suggests that first-time fraudsters might be trying unsophisticated fraud attacks as a new side hustle outside of their regular work to shield them from the economic downturn.

"Baking in more sophisticated identity verification methods, such as document and biometric authentication, will ensure that no matter how fraudsters try to capitalize on the changing situation, businesses can significantly lower the risk of fraud to their organization and customers."

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