IDnow study: 250 percent more fraud attempts due to Corona

The Covid-19 pandemic also seems to be increasingly calling hackers and cybercriminals into action: IDnow reports a significant rise of 250% in fraud attempts but reassures that technology and security systems remain ahead of the new trends.

The increased demand for digital processes also leads to a rise in digital fraud methods

IDnow has observed a general increase in the demand for digital services and processes since the beginning of 2020. However, with this development, digital fraud methods have also changed, displaying new schemes alongside a drastic rise over the year. Between March and June, when many countries ordered a lockdown and processes had to shift to digital environments, IDnow saw new developments in identity fraud: cases of Similarity Fraud increased by 231 percent, fake ID frauds rose by 180 percent, and social engineering attacks by 75 percent during this period.

The fraud methods themselves also show new tricks adapted to the current pandemic situation. Particularly in social engineering, IDnow observed new cases: fraudsters, for example, use applications for government aid programs or fake job ads as bait in the context of increased unemployment.

IDnow has set up an anti-fraud team that also investigates in the darknet

"In recent months, our security system has detected a significant increase in fraud attempts and numerous new methods, against which we protect our customers. We have invested in a comprehensive concept and the detection of early indicators, so we always stay one step ahead of the fraudsters," says Armin Bauer, co-founder and Managing Director Technology at IDnow. He adds:

"In addition to technical warning systems, we have set up an anti-fraud team that conducts research in the darknet, tests fake ads itself, and communicates with victims to study the exact approach of the fraudsters. This way, we can detect and prevent attack attempts at an early stage."

All of this seems to be working: despite the new methods and an increase in fraud attempts, IDnow can report a constant False Acceptance Rate (FAR) compared to the previous year. The evaluation by IDnow can be read at:

https://www.idnow.io/de/security-report/#

What does this mean?

Covid-19 has fueled digital business but also digital fraud attempts. Accordingly, providers of identity verification services had to adjust as well.