The latest quarterly analysis of online fraud trends, published by TransUnion, suggests that since the outbreak of the global health crisis, malicious elements such as fraudsters have increased their misdeeds against a range of businesses - including online gambling.
In its findings, the report suggests that online gambling customers experienced a 9% increase in the rate of suspected fraud in 2020, compared to 2019. This was concluded from the 576 million iGaming transactions TransUnion analyzed for risk indicators.
Gambling Under Threat
The industries, including gambling, have been analyzed for the period of March 11th 2019 to March 10th 2020 and March 10th 2021.
The TruValidate solution has documented a 19% growth in global iGaming customers’ transactions between 2019 and 2020.
Online gambling customers have experienced a 9% boost in the suspected fraud rates in 2020 and also observed a decline in iGaming mobile transactions, which is the first instance since 2016.
iGaming on mobile devices is way higher than desktops with the percent of online gambling transactions that took part on smartphones being 69%.
Melissa Gaddis, Global Fraud Solutions at TransUnion senior director of customer success, said:
“We believe mobile online gambling transactions dipped because so many people used their desktops while working from home during the pandemic. However, we expect the long-term impact of mobile to continue to be paramount for business success, Mobile devices will be key to providing a seamless way for online gamblers to transact and businesses to assess risk with biometric-driven multifactor authentication."
Other Businesses at Stake Too
TransUnion’s Global Consumer Pulse Study has found that more than one in three consumers have been targeted or fell prey to pandemic-related digital fraud attempts.
Billions of transactions have served as a basis for the company’s conclusions regarding intelligence-based frauds against businesses. Also, over 40,000 websites and apps that were contained in the flagship identity proofing and risk-based authentication, fraud analytics solution TransUniion Tru Validate.
The said system found that the rate of fraudulent transaction attempts against businesses worldwide rose 46% compared to the periods of March 2019 and March 2020.
During the same timeframe, this particular issue increased in the US 22%.
Global Fraud Solutions at TransUnion senior vice president, Shai Cohen, claims that fraudsters look to take advantage of significant events in the world, such as the pandemic.
The rapid digital acceleration that followed the crisis has brought about the unrivaled stay-at-home orders. “By analyzing billions of transactions we screened for fraud indicators over the past year, it has become clear that the war against the virus has also brought about a war against digital fraud.”
Gen-Z the Most Targeted
The counties with the highest rate of fraudulent digital transactions during the actual global health crisis were The Seychelles, Kazakhstan and Turkmenistan.
The study had also established that 36% of consumers were being targeted by a digital fraud related to the health crisis in the last three months - which is higher than one year ago. 29% were targeted by the same fraud in April 2020.
The generation born between 1995 and 2002 - Gen Z - is the most targeted generation, at 42%. Millennials come second as 37%.
Melissa Gaddis concludes:
“TransUnion documented a 21% increase in reported phishing attacks among consumers who were globally targeted with COVID-19-related digital fraud just from November 2020 to recently. This revelation shows just how essential acquiring personal credentials are for carrying out any type of digital fraud. Consumers must be vigilant and businesses should assume all consumer information is available on the dark web and have alternatives to traditional password verification in place.”
“One Year after COVID-19, New TransUnion Research Shows Digital Fraud Attempts Against Businesses Have Increased by 46%”, TransUnion PR, Match 23rd, 2021.