Fake documents and synthetic identities led to higher fraud in financial services in 2022
A recent report exploring the impact of investing in IDV, released by Regula, a global developer of forensic devices and identify verification (IDV) solutions, shows gaps in identity fraud between banking and fintech organisations worldwide. The research conducted between December 2022 and January 2023 found that every fourth bank reported more than 100 identity fraud incidents in 2022 (about 26% of organisations), while 17% were reported in the fintech sector. The most common form of fraud identity was the use of fake or modified physical documents.
The report further indicates the economic and collateral effects of identity fraud. The median cost of identity fraud for banks was nearly half a million dollars (about $479,000) and $120,000 for the fintech sector organizations. The collateral effects were related to business disruption (44%) and legal expenses (36%).