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Financial crime management platform Feedzai has released its most recent Financial Crime Report, stating that online fraud has increased 23% as cashless payments take centre stage.
The report analyses financial crime and consumer spending trends from more than 1.5 billion global transactions from April to July 2021. According to the analysis, six months into the second year of a global pandemic, consumers’ shift to digital banking has only gotten stronger.
The data reveals continuous move to cashless transactions, with a 146% increase in P2P payments, a 44% decrease in cash transactions, and a 109% increase in online transactions, to nearly double the number of card-present or in-person transactions. The number of online card fraud attempts increased by 23% in this time period.
With fraud on the rise, the report also identified the top five fraud scams in the second quarter of 2021. Purchase scams, a type of scam where consumers pay for products or services that never arrive, took the top spot. In another indication of consumers relying more on their mobile phones, SMS scams made it in the top five for the first time.
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