- New research from GBG, a leading expert in identity verification, uncovers a concerning trend of increasing fraud across Asia-Pacific (APAC) businesses. Nearly all (97%) APAC businesses are concerned about the sophistication and prevalence of fraud, according to the report “Global Fraud Report 2024” that surveyed fraud prevention professionals in the area.
- Additionally, fraud attempts are rising, with 70% of respondents noting an increase compared to last year. This is worsened by the emergence of Generative AI (GenAI) as a significant fraud threat, with 35% believing it will be used to create more convincing synthetic identities.
- Despite the gravity of these concerns, the report also underscores a lack of collaboration among businesses to combat fraud. While most respondents recognise the importance of information sharing, less than half are actively participating in initiatives such as industry forums and data exchange solutions.
- 97% of APAC respondents are anxious about the trend towards more organised and widespread fraud, with 77% observing a significant increase in fraud sophistication in the last 12 months.
- There is an increase in various types of fraud across the surveyed industries, notably impersonation of digital presence (41%), account takeovers (40%), bonus or promotion abuse (39%), and money-laundering and money mules (39%).
Singapore, August 7, 2024 — Recent findings from GBG, the premier authority on global identity and location, indicate that nearly all businesses in the Asia-Pacific (APAC) region are increasingly concerned about the rise of organised and widespread fraud. The “Global Fraud Report 2024” by GBG surveyed businesses across various sectors, including banking, eCommerce, financial services, FinTech, gaming, insurance, lending, and telecommunications, in countries such as Australia, New Zealand, Malaysia, Indonesia, Thailand, and the Philippines. The report aimed to assess the extent and types of fraud, the impact on businesses, and their responses to these challenges.
The Fraud Landscape in APAC
Amidst an environment of increasingly sophisticated and organised fraud, 70% of fraud prevention professionals have reported a rise in fraud attempts compared to the previous year. This figure is notably higher than those in the EMEA (55%) and the United States (48%). Additionally, opportunistic and convenient fraud remains a significant threat for nearly two-thirds (63%) of those surveyed.
Financially, 11% of respondents indicated that the average transactional value of attempted fraud at their organisations ranges from USD 35,000 to USD 50,000.
Key Fraud Vectors of Concern
Professionals in the region view the evolution of Generative AI (GenAI) as the most significant trend in identity verification and financial fraud over the next three to five years. In APAC, 35% of respondents consider GenAI the most threatening, compared to 27% in both EMEA and the US.
The concern around GenAI arises from several factors: 27% believe it can create more convincing synthetic identities, while 26% think it will enhance the accuracy of fake ID documents and have a substantial impact on phishing and smishing activities.
Preparedness of Businesses to Combat Fraud
Despite new technologies enabling fraudsters to refine their tactics, nearly one-fifth (19%) of fraud prevention professionals feel inadequately equipped with the necessary technologies to counter advanced criminal networks involved in cybercrime, fraud, identity theft, and money laundering.
A lack of risk signals at the top of businesses’ funnels makes this problem worse. 28% of respondents cited understanding the latest fraud trends as their biggest challenge, while 27% pointed to identifying and preventing fraud during customer onboarding as a significant hurdle, especially when striving to maintain a seamless customer experience.
Cross-Border Collaboration: Expectations vs Reality
While most fraud prevention professionals recognise the strategic advantage of cross-sector identity intelligence sharing, with New Zealand (97%) and the Philippines (88%) at the forefront, less than half are actively engaging in such efforts. Only 47% participate in industry forums and knowledge exchanges, 46% invest in technology solutions for secure data exchange, and another 46% partner with law enforcement for information sharing.
Currently, 83% of respondents believe that organisations are too focused on maintaining a competitive edge to collaborate on combating fraud. Additionally, almost 80% think that global governments are not doing enough to support cross-sector collaboration.
The Impact on Fraud Prevention Professionals
Carol Chris, General Manager, APAC at GBG, stated, “Our latest research presents a worrying view of the fraud landscape in APAC. Businesses are not only contending with a surge in fraud attempts but also facing more organised and complex attacks due to technologies like Generative AI.”
She added, “Collaboration across industries is crucial to combat fraud. However, we must first address the existing challenges. We encourage businesses to transcend competition and work together to outmanoeuvre fraudsters. This will not only protect organisations but also provide essential support to the fraud prevention professionals on the front lines.”
Every respondent (100%) reported losing sleep over the risks fraud poses to their organisations, with identity verification (46%) and insufficient resources (44%) being the primary concerns. This heavy burden has adversely affected the mental well-being of fraud prevention professionals, with nearly 70% having fallen victim to fraud themselves.
