As more consumers are adopting online banking services, the rate of frauds has increased up to 150 percent across the world

People are now using digital methods for financial services because these are easy, and a faster way to transfer money from one place to another. Especially, during the pandemic situation, more people are using the online method for their transactions such as online payments for shopping, fee payments, and much more. According to a report, millions dollars of online transactions occurred every single day and in 2021, digital payments may hit a whooping $6.6 trillion in value.

Many criminals are using different techniques for scam. The data from Transunion shows that the rate of fraud attempts online against monetary transactions in the US has increased up to 109% when it is compared with the online fraud ratio of last quarter of the year 2020, and if we talk about the percentage of online frauds attempts across the world this goes almost 150% which is an alarming situation.

The percentage of online financial frauds is increasing day by day, and many financial institutions are using different methods to reduce the frauds efforts, but still, a lot of work needs to be done. Scammers know people and organizations use online methods for higher-value transactions. The pandemic situation also gave the rise to these financial dealings, and it has become the habit of most people to make transfers online. TransUnion has published the percentage increase that about 40% of people are using online platforms for most of their financial receipts and payments and 60% of people use financial applications on smartphones for financial dealings.

These data have been taken from the intelligence of multi-billion-dollar dealings, and more than 40,000 different websites and swindles analytics. The ratio of frauds in the industrial sector in the US has increased up to 25% from the last quarter of the prior year to the first quarter of this year. However, the ratio of frauds efforts in these industries is not the same. If we examine the percentage of scam attempts around the world from the last quarter of 2020 to the first quarter of this year, this percentage reaches up to 24%. This is a warning for all the people using online applications for their monetary transactions and for organizations.

Researchers have said that financial industries have the highest ratio of identity stealing scams in which the fake person steals the identity of an actual person and commits different crimes, and after that traveling and leisure companies have become the victim of credit card scam efforts with a percentage of about 25%. Gaming sector is coming behind with a percentage of about 9% approximately with the most frequent scam of gold farming. However, insurance companies, logistics sectors and monetary retail have seen a reduction in the fraud attempts from the last year of 2020 to 1 May of this year.

Take a look at below infographic for more insights:


Read next: New Report Reveals Phishing Attacks Have Increased in the First Quarter of 2021 Compared to the Last Years’ Quarter

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