TransUnion study reveals that the rate of suspected digital fraud attempts in industries from Canada increased by 21% from 2020 to 2021
- Canada’s rate of suspected digital fraud attempts increased 88% from 2019 to 2021
- Nearly four in 10 (40%) Canadians said they have been the target of digital fraud from October 2021 to January 2022
- 43% of Canadians said they do the majority of their transactions online.
- Concern about fraud is one of the main reasons Canadians say they abandon online shopping carts (41%).
- The digital fraud suspicion rate for transactions originating from Canada in the travel and leisure industry increased by 116% from 2020 to 2021
- The digital fraud suspicion rate for transactions originating from Canada in gaming and financial services increased by 85% and 74% from 2020 to 2021, respectively
TORONTO, April 8, 2022 (GLOBE NEWSWIRE) — Fraudsters continue to target industries that are seeing tremendous growth in transactions. According to TransUnion’s 2022 Global Digital Fraud Trends Report, the travel and leisure industry saw the highest growth in the percentage of digital fraud for transactions originating from Canada in 2021 with a 116.0% increase year over year (YoY)one. This became especially prevalent as economies normalized from the height of the pandemic and Canadians began to travel again. Gaming (85%) and financial services (74%) were the second and third fastest growing industries in the rate of suspected digital fraud attempts from Canada.
According to a recent TransUnion survey, more than one in four Canadians (43%) said they conduct 51-100% of their transactions online, including retail, finance and business. As consumer adoption of digital channels continued to accelerate, Canada’s rate of all types of suspected digital fraud attempts increased by 21.5% year-on-year from 2020 to 2021 and by 88% from 2019 to 2021. This is much higher than the increase in suspicious digital fraud attempts globally at 9% and 52% respectively. Additionally, according to a recent TransUnion survey, four in 10 (40%) Canadians said they have been the target of a digital fraud scheme and nearly nine in 10 (89%) Canadians are concerned about being a victim of digital fraud.
“As Canadians have moved from physical retailers to e-commerce platforms over the course of the pandemic, fraudsters have gravitated to where consumers are spending more and more time and money,” said Patrick Boudreau, head of identity management and Fraud solutions at TransUnion. Canada. “Fraud continues to impact a variety of different business sectors and fraudsters are always looking for the next opportunity. It is more important than ever for companies to be vigilant and take proactive steps to better serve customers and protect their bottom line.”
Security concerns are top of mind for Canadian consumers when it comes to their digital experience.
- 91% of Canadians said that confidence that their personal data will not be compromised is important when choosing who to transact with online;
- 67% said fraud concerns would keep them from returning to a website;
- 41% stated that one of the main reasons for abandoning online shopping carts is due to fraud concerns;
- 26% mentioned that concern about not having enough security on the site is one of the main reasons for abandoning their cart.
Main industries targeted for suspected digital fraud: Canada vs. Global
Globally, financial services and travel and leisure ranked as the top two industries with the highest growth in the rate of suspected digital fraud attempts from 2020 to 2021. Digital fraud in the travel and leisure sector experienced largest year-over-year increase and grew 68.4% with credit card fraud is the predominant type, which is when a customer uses a fake or stolen credit card for a purchase, resulting in a chargeback to the site.
Year-over-year growth rates of digital fraud attempts (2020 – 2021)
|Industries Affected by Fraud||Canada||Global|
|Travel and Leisure||116%||68%|
|Financial services||74%||3. 4%|
Digital fraud in financial services remains a top target for fraudulent activity around the world and grew by 33.5% year-on-year, making it an area of growing concern for businesses and consumers alike. The number one type of fraud in financial services is real identity fraud, in which the victim is a real person and the scammer uses a stolen identity to conduct fraudulent transactions. As such, many financial institutions have taken steps to implement increased security measures and authentication solutions, especially as digital banking is considered the industry standard.
TransUnion reached its conclusions about business fraud based on intelligence from billions of transactions and more than 40,000 websites and applications contained in its suite of fraud analysis, risk-based authentication and identity proofing solutions badge: TransUnion TruValidate™. The percentage or rate of suspected digital fraud attempts is those that TruValidate customers rejected or reviewed due to fraudulent indicators compared to all transactions you assessed as fraud.
For more information and insights on global fraud trends, download the report.
About TransUnion (NYSE: TRU)
TransUnion is a global information and knowledge company that enables trust in the modern economy. We do this by providing an actionable picture of each person so that they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.® TransUnion offers solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada include some of the nation’s largest banks and card issuers, and TransUnion is a leading provider of credit reporting, fraud and analytics solutions in the finance, retail, telecommunications, utilities, government and banking industries. insurance.
|Ketchum PR Canada|
one The percentage or rate of suspected or risky fraudulent digital transaction attempts is based on those that have been denied or reviewed by TransUnion customers receiving TruValidate services for fraudulent indicators compared to all transactions assessed as fraudulent.