Fraudsters Shift Focus to Insurance Industry During First Half of 2022
Industries seeing the largest declines in the rate of suspected digital fraudulent activity from Q2 2021 to Q2 2022 included gaming, travel and leisure, and retail.
First-party application fraud was the top insurance-focused fraud impacting that industry. This type of fraud involves fraudulent applications containing intentionally inaccurate or manipulated information provided by the policyholder with the intention of receiving certification, lower rates or better terms for a policy/contract.
“We have observed interesting trends in the first half of 2022 with suspected fraudulent activity in the insurance industry continuing to be elevated during the first six months of the year,” said
Suspected Fraud Attempts Shift to New Industries Globally
Industry | Rate Change from Q2 2021 to Q2 2022 |
Insurance | 159% |
Logistics | 13% |
Communities (online dating, forums, etc.) | -8% |
Telecommunications | -12% |
Gambling | -14% |
Financial Services | -22% |
Retail | -28% |
Travel & Leisure | -28% |
Gaming | -63% |
Shifts in
Overall, the rate of suspected digital fraud across all industries decreased nearly -19% YoY from Q2 2021 to Q2 2022 in
While insurance and logistics were the only industries to see increases, the types of fraud were much different. Whereas insurance focused on application fraud, logistics was dominated by shipping fraud. This is a type of fraud where a buyer spoofs a shipping address or a seller receives payment for goods or services, but never ships to a buyer.
Digital fraud continues to be a constant in the lives of many
“For industries experiencing stabilization of fraud instances, the focus has been identifying more of the good transactions and customers to allow them to pass with less friction,” said
For worldwide and regional breakdowns around how much the suspected digital fraud attempt rate recently changed, what types of fraud are most prevalent in certain industries and more, please download the infographic.
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