AU10TIX Releases Q4 Global Identity Fraud Report Revealing Eight-Month "Mega-Attack"

BitCoin Value Surge Led to Increased Cryptocurrency Sector Attacks
In Q3, AU10TIX reported a shift in attacks from the cryptocurrency sector to the payments industry, likely in response to the EU's Markets in Crypto Assets (MiCA) regulations, which requires stringent Know-Your-Customer (KYC), Know-Your-Business (KYB) and Anti-Money Laundering (AML) screening for trading platforms. Although this trend continued in Q4, it was impacted by the rising value of Bitcoin throughout the quarter, which attracted both legitimate traders and scammers. As a result, the percentage of global attacks targeting the cryptocurrency sector rose from 23% to 32%. Still, it remained far below the 47% spike of Q2.

North America and APAC Saw Majority of Cryptocurrency Sector Attacks
Even within the cryptocurrency sector, divergent trends were exhibited across regions. In Europe, the implementation of MiCA has been impactful, resulting in no increase in attacks despite the jump in Bitcoin value. However, North America and APAC have no such regulations and thus experienced heightened activity as fraudsters attempted to exploit the Bitcoin frenzy and go unnoticed in the flux of trading. Consequently, payments sector identity fraud in North America dropped by 30% as some fraudsters turned their focus back to cryptocurrency.

Payments Tops List as Most Heavily Targeted Industry
The payments sector remained responsible for nearly half of all global Q4 fraud attempts. This industry does not have a widespread and globally accepted regulatory framework, so it is crucial that payments organizations strengthen their security protocols to protect consumers from fraudulent transactions.

AU10TIX offers four actionable insights to help organizations protect against identity fraud:

• Selfie-based biometrics are proven to be effective prevention against fake account onboarding
• Robust KYB, KYC, and AML screening are must-haves to protect the reputation of a business
• Consortium validation increases privacy and magnifies fraud detection
• Be aware that fraudsters are using social media platforms to establish fake ID credibility

About AU10TIX 
AU10TIX plays a pivotal role in establishing trust between individuals/companies and digital systems. Founded in 2002, it is the global leader in identity verification and management, protecting the world's largest brands against advanced fraud. The company's future-proof product portfolio helps businesses provide frictionless customer onboarding and verification in 4-8 seconds while staying ahead of emerging threats and evolving regulatory requirements. AU10TIX offers the world's only 100% automated global identity management system, as well as the industry's only solution that can detect organized mass attacks by analyzing traffic patterns and cross-checking data in a consortium of more than 60 major companies. With its deep roots in airport security, AU10TIX has authenticated billions of identities. AU10TIX is a subsidiary of ICTS International N.V. (OTCQB: ICTSF). Connect with AU10TIX on LinkedIn and on X at @AU10TIXLimited. For more information, visit AU10TIX.com. 

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SOURCE AU10TIX