Quest is on to protect Indian consumers and online account takeovers
A new study has revealed that escalation of digital fraud in India has led to US$7.68 billion investment to stop financially-motivated fraudsters.
Indian businesses get serious about curbing digital fraud by increasing investments 400%+ over 2022 figures, according to the study by San Francisco-headquartered Bureau, a no-code decisioning platform that delivers accurate conclusions about the trustworthiness of digital identities.
A first of its kind study, ‘The Anatomy of Fraud 2023’ provides insights on the size of and drivers behind digital fraud in India and Southeast Asia against a backdrop of the global Digital Economy.
Quest is on to protect Indian consumers from online account takeovers, fake account registrations using synthetic identities, and transaction fraud, according to the study.
Banking, Financial Services, and Insurance segments are high-value targets and make up 70%+ of anti-fraud investment; followed by e-commerce at ~24%
The report revealed that of the total reported digital payment fraud, ~55% is UPI-related. While the attack volume is massive, the financial impact is actually relatively low. Half of the UPI-related fraud attacks tend to be low-ticket size (less than Rs.10,000).
“We undertook this study with rigour to discover the magnitude of digital fraud, its effect on the Digital Economy, and to add to the body of knowledge about attack types and solutions,” said Bureau founder and CEO Ranjan R. Reddy.
“The findings are timely. The digital economy runs on digital identities, and fraudsters are literally banking on that. Out in the ether, anyone can be anybody,” he said on 17 May 2023.
“Are you really who you say you are, is the critical question Chief Risk Officers, CTOs, CIOs, CISOs, and their teams in businesses around the world ask every day. Not being able to discern which digital identities are trustworthy is the inflection point between growth and failure.
“All it takes is for one bad actor to launch a successful digital-fraud incursion for businesses to lose consumer trust, brand equity, and revenue – for good.”
The Indian government is being proactive. Its fraud mitigation initiatives (i.e. stringent KYC processes across digital segments, new regulations for the real-money gaming sector, etc.) are ensuring businesses protect themselves and their consumers.
Reddy said, “Fraudsters go where the money and opportunity are. The rising digitization, digital inclusion expansion, and growing number of digital-first businesses suggest India is going to continue to be a hotbed of digital fraud.”
Bureau conducted ‘The Anatomy of Fraud 2023’ survey in association with renowned research and consulting firm, Praxis, to study the impact of digital fraud globally, especially in India and Southeast Asia (SEA), to address the increasing significance of FDP in the global marketplace.
Bureau is a modern no-code decisioning platform. It delivers absolute conclusions about digital identity trustworthiness to prevent fraud, ease compliance, and make it easy for consumers to transact online.
The single AI-architected platform provides banks, fintech, gaming, gig economy and e-commerce companies with a complete range of risk, compliance, fraud prevention and detection, and onboarding solutions. Its Identity Bureau network supplies customers with insights derived from an identity graph and feedback loop about digital identities based on contextualised linkages.
Backed by tier-one investors Okta, Commerce Ventures, Quona, Blume, and Village Global. Bureau is headquartered in San Francisco, CA, with offices in Bangalore and Singapore. fiinews.com
