UK Financial Services Sector Leverages AI and Secure Mobile Channels to Mitigate Fraud

According to a recent analysis, the UK will see a surge in online fraud attacks in 2022, nearly doubling in volume as fraud continues. LexisNexis Risk Solutions.

The study found that there were about 36 million artificially-triggered fraud attacks in the UK, a 92% increase year-on-year. In contrast, global growth was 56% for him.

analysis He further highlighted that automated bot attacks are on the rise, with 352 million such attacks on UK targets in 2022, an 81 percent increase year-on-year. These bot attacks accounted for approximately 2% of all online transactions in the UK.

Featuring sophisticated algorithms and automated scripts, bot attacks encompass a wide range of cyberthreats, including website disruptions, phishing attempts, and smishing attacks aimed at data theft.

These findings are based on analysis of over 15.8 billion UK transactions processed through the LexisNexis Digital ID Network. However, despite the surge in fraud numbers, the UK showed relatively low attack rates compared to the rest of the world.

UK outlook

The successful rate of fraud attacks, measured as a percentage of successful attacks relative to total transaction volume, was 0.2% in the UK, significantly lower than 1.3% globally.

The UK’s advanced financial services market invests billions of dollars each year in sophisticated, technology-driven fraud prevention solutions, helping to reduce this attack rate. Additionally, the proliferation of mobile and app-based online banking services has played a key role in mitigating the success of fraudulent activities targeting UK customers. Almost 88% of financial services transactions in the UK are processed on mobile, 89% of which are done through apps.

Among the different types of fraud observed in the UK analysis, fraud made up the main category, accounting for 38.2 percent of fraud attacks, followed by first party fraud at 29.3 percent and third party account takeover fraud at 13. Followed by percent.

Rob Woods Fraud and identity experts from LexisNexis Risk Solutions in the UK and Ireland highlighted the UK’s positive outlook in fighting fraud.

Despite an increase in overall transaction volumes, this analysis suggests that the UK’s highly evolved and technology-enabled anti-fraud market is causing significant pain in the rest of the world at a large scale. Inevitably, other fraud types will emerge to fill this void, such as first-party fraud, which is currently a major problem in the UK. doing.”

Implications of cheating

The UK financial services sector will reduce the impact of fraud on customers by adopting AI-powered fraud analytics, shared intelligence and increased use of secure mobile and app channels for online services, according to Woods. We are making great progress in that respect.

As fraud attacks continue to rise over the past 18 months, financial institutions have responded better by placing a greater emphasis on building trust with their loyal customer base to quickly authenticate and gain access online. The level of customer traffic that can be made has increased. This allows banks to focus on detecting and preventing malicious traffic. “

But while the rate of fraud attacks is low in the UK, it has increased at a faster pace in the last year.