Security News > 2021 > March > Total combined fraud losses climbed to $56 billion in 2020

While total combined fraud losses climbed to $56 billion in 2020, identity fraud scams accounted for $43 billion of that cost.

Traditional identity fraud losses totaled $13 billion, Javelin Strategy & Research reveals.

"The pandemic inspired a major shift in how criminals approach fraud," said John Buzzard, Lead Analyst, Fraud & Security, with Javelin Strategy & Research.

The reduction in transaction activity, combined with financial institutions' more robust antifraud measures, made it harder for criminals to succeed in their usual fraud activities.

Nearly one-third of identity fraud victims say their financial services providers did not satisfactorily resolve their problems, and 38% of victims closed their accounts because of lack of resolution at the financial institution where their fraud occurred.

"It is clear that financial institutions must continue to proactively and transparently manage fraud as a means to deepen their customer relationships," said Eric Kraus, VP and GM of fraud, risk and compliance, FIS. "Through our continuing business relationships with financial institutions, we know firsthand that consumers are looking to their banks to resolve instances of fraud, regardless of how the fraud occurred."

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