IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

More than half of businesses saw rising fraud levels this year

Each individual identity fraud attempt could cost an organisation between £1,000 and £4,999 on average

More than half of businesses across the UK, Germany, France, Spain, and Italy have seen a rise in fraud levels this year, according to new research commissioned by identity management provider GBG.

Some of the most frequent attacks were credit and debit card fraud (56% of respondents), followed by phishing (46%), and e-transfer fraud (37%).

However, respondents said that they are currently least prepared to defend themselves from synthetic identity fraud (26%), IP piracy (26%), and social engineering attempts (25%).

What's more, one in three consumers said they had become more worried about becoming a victim of fraud as a result of the COVID-19 pandemic. Unfortunately, their fears may be justified; according to GBG, fraud has become a prevalent issue in 2020, with one in five consumers affected by identity fraud only this year. 

The rise in incidents can be attributed to the digital acceleration powered by government-imposed lockdown restrictions and social distancing. This year saw many consumers open online accounts, with the most popular being shopping (47%), social media (35%), and online banking (31%), using mobile numbers (50%), email addresses (48%), and biometric data (28%) to log in.

GM of Identity Fraud, Europe at GBG, Gus Tomlinson, said that the research “shows that not only is identity fraud already prolific, the ‘trust gap’ it creates poses a risk to industries which will depend on digital trust if they are to thrive in 2021 and beyond”. 

Related Resource

Best practices for protecting remote work

Staying safe and secure while working from home

Download now

“For some businesses and even entire sectors, we are nearing a tipping point: get this balance wrong, and lose trust – and therefore customers – for good.”

GBG also warned that each individual identity fraud attempt could cost an organisation between £1,000 and £4,999 on average.

At the height of the pandemic in April, it was reported that about £2 million was lost to coronavirus-related fraud in the UK, with the NCSC warning that “an increasing number of malicious cyber actors are exploiting the current COVID-19 pandemic for their own objectives".

"In the UK, the NCSC has detected more UK government branded scams relating to COVID-19 than any other subject," the report added.

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Best free malware removal tools 2022
Security

Best free malware removal tools 2022

22 Jun 2022
A guide to cyber security certification and training
Careers & training

A guide to cyber security certification and training

16 Jun 2022
What is shoulder surfing?
social engineering

What is shoulder surfing?

10 Jun 2022
CIAM buyer’s guide
Whitepaper

CIAM buyer’s guide

6 Jun 2022

Most Popular

FCC commissioner urges Apple and Google to remove TikTok from app stores
data protection

FCC commissioner urges Apple and Google to remove TikTok from app stores

29 Jun 2022
Former Uber security chief to face fraud charges over hack coverup
data breaches

Former Uber security chief to face fraud charges over hack coverup

29 Jun 2022
Internet providers look to ease cost of living crisis with cheaper broadband
broadband

Internet providers look to ease cost of living crisis with cheaper broadband

29 Jun 2022