Photo: / Artem Oleshko

Identity Fraud Sees Sharp Rise During COVID-19 Pandemic

– Think Digital Partners

Christine Horton relays information from Onfido’s Identity Fraud Report 2020, including new trends in identity fraud due to changing behaviors during the COVID-19 pandemic

According to Onfido, ID fraud is up 4.1 percent from the previous year and is becoming even more difficult to detect in a year that saw purchasing habits drastically change for legitimate consumers.

“Fraudulent activity peaked in July and August. But with large parts of Europe encountering a ‘second wave’ and re-entering lockdown, coupled with the spike in online activity for the holiday shopping season, Onfido predicts fraud rates will start to climb again in the last few months of the year."

Onfido suggests that fraudsters are now working around-the-clock to keep up with opportunity and are using ever-more-sophisticated biometric fraud techniques.

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

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