Types of Frauds Affecting Various Industries
Between January 1, 2020, and April 28, 2020, TransUnion conducted an analysis of leading industries, identifying suspected fraud increases and the primary types of fraud experienced within those sectors.
| Industry | Suspected Fraud Increase | Top Type of Fraud |
| Telecommunications | 76% | Credit card |
| E-Commerce | 12% | Promotion abuse |
| Financial Services | 11% | Identity theft |
| Gambling | -1% | Promotion abuse |
| Public Sector | -1% | Account takeover |
| Logistics | -7% | Shipping |
| Communities | -11% | Phishing |
| Travel & Leisure | -38% | Credit card |
| Healthcare | -40% | Identity theft |
| Gaming | -43% | Gold farming |
| Retail | -10% | Promotion abuse |
During the COVID-19 pandemic, three out of ten respondents reported facing online fraud and digital malfeasance. Contrary to common belief, the pandemic inflicted a significant toll on millennials, with 34% falling victim to scams.
Impact of Fraud on Key Industries
Several industries crucial to economic development face substantial online cybercrime annually, significantly impacting their financial stability.
Banking & Financial Sector
Financial institutions, including banks, credit lenders, and mortgage dealers, are consistently susceptible to substantial fraud, resulting in annual losses reaching billions of dollars. The abundance of transactions in this sector attracts systematized fraud rings, leveraging tech expertise to execute large-scale damage in mere moments. For instance, in the UK alone, the banking sector prevents £4.5 million worth of fraud daily, yet still recorded £112 million in fraud in 2019.
Healthcare Sector
The healthcare industry experiences vast fraud, estimated at tens of billions of dollars annually. Fraudulent activities range from falsified claims to misleading information, significantly impacting global healthcare expenses. Healthcare insurance fraud, amounting to around USD 80 billion annually, is a notable concern.
Insurance Sector
Fraud within the insurance industry, excluding healthcare, surpasses USD 40 billion annually in the United States. These fraudulent activities inflate annual premiums for families, with sectors like auto insurance witnessing one in ten individuals providing falsified information during purchase.
Retail Sector
Retail businesses grapple with escalating online fraud, causing significant disruption to customer loyalty. Fraudulent activities like unauthorized transactions and vendor collisions directly affect customer trust and loyalty. In 2019, shoplifting fraud alone totaled USD 61.7 billion, contributing to customer dissatisfaction and sales disruption.
eCommerce Sector
The shift from traditional brick-and-mortar models to eCommerce has led to increased cybercrime targeting retailers. E-commerce fraud, encompassing various forms such as refund fraud and identity theft, is projected to cost the sector USD 130 billion by 2023, primarily attributed to card-not-present fraud.
In conclusion, cybercrime poses a significant threat across industries, necessitating robust security strategies and collaborations with trustworthy entities like Sourceblink to safeguard businesses and mitigate potential scams.
Sourceblink offers comprehensive cybersecurity services tailored to protect digital infrastructures. Connect with us today for end-to-end cybersecurity solutions.