Cybercrime Report: Confidence Amid Chaos - Managing Fraud and Scams with Data and Analytics
Digital fraud attack rates continued climbing in 2023, increasing 19% year-over-year. Automated bot attacks remained stable after last year’s surge in attack volume.
The fraud landscape in APAC is diverse, reflecting the different stages of maturity of the regional economies. Regulators and financial institutions across the region worked diligently to respond to the significant growth in digital fraud sustained in 2022 and crossing over into 2023.
The LexisNexis® Risk Solutions Cybercrime Report delivers unique and actionable insights derived via advanced machine learning from the largest cross-industry risk intelligence network in the world, the LexisNexis® Digital Identity Network®.
Key findings:
- Third-party Account Takeover Takes Top Spot – Third party account takeover fraud was the leading type of fraud reported by clients in 2023, contributing 29% of fraud classifications reported, aligning with the strong attack rate growth seen at account login in 2023 (up 18% YOY).
- Human-Initiated Attacks Experience Rapid Growth – While bot-initiated attacks maintained a steady 2% YOY growth to reach 3.6 billion, human-initiated attacks surged by 40% in volume to 1.3 billion.
- Remote Scam Centers Drive Fraud – Device data, including high-altitude behavioral biometrics telemetry, reveals that parts of South-East Asia are established homes for dedicated remote scam centers. Cybercriminals favor border areas in Cambodia, Myanmar and remote parts of Thailand, according to data from the Digital Identity Network.
- New Challenges Confront Bot Attacks – Automated bot attack rates remained steady in 2023, partly due to the threat posed by advanced bot detection capabilities to this attack vector. These capabilities involve detecting bot traffic that mimics the locations of legitimate customers via IP proxies, along with identifying abnormal timing of events and unusual on-page or in-app behaviors. Businesses are increasingly employing proxy piercing technology to break the anonymity of cybercriminals attempting to conceal their behavior through the use of virtual private networks (VPNs).
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