MUMBAI: Logistics, financial services, travel and leisure saw the biggest increase in digital frauds since May 2020 even as these incidents declined in other sectors after businesses opened up at physical locations. According to a report by TransUnion, retail, telecom and healthcare have seen the biggest decline in fraud attempts in India after businesses ramped up protection measures.
TransUnion said that it recently observed a decrease in such attempts based on intelligence from billions of transactions and more than 40,000 websites and apps. Specifically, TransUnion found that suspected online fraud from India against businesses increased 121% from right before the pandemic (Jan 1-March 10) when compared to the first phase of the pandemic (March 11-May 18).
Compared that phase, the second one from May 19 to July 25 saw a 29% decrease in suspected digital fraud attempts from India against businesses. Overall, the drop in frauds in India (in the second phase over the first) has been better in the country compared to worldwide numbers. Globally, suspected fraudulent digital transactions against businesses decreased 9% from the beginning of the pandemic phase 1 to when businesses began reopening in phase 2.
“With the rush for businesses to go digital as many were forced to go completely online almost overnight, fraudsters tried to take advantage,” said Shaleen Srivastava, EVP and head of fraud, solutions and alternate data at TransUnion in India. “They were most likely unsuccessful in their attempts and took their scams elsewhere as those businesses ramped up their digital fraud prevention. Conversely, with consumers, fraudsters are increasingly using Covid-19 to prey on those persons who are facing mounting financial pressures.”
According to TransUnion, the financial services and logistics companies need to maintain vigilance and undertake astute monitoring of transactions to contain losses. “Given the billions of people globally that have been forced to stay at home, industries have been disrupted in a way not seen on this massive scale for generations,” said Srivastava.
“Now that many transactions have shifted online, fraudsters have tried to take advantage and companies must adapt. Businesses that come out on top will be those leveraging fraud-prevention tools that provide great detection rates and friction-right experiences for consumers,” Srivastava added.