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2022 True Cost of Fraud™ APAC Study

Fraud attacks rose in 2022 according to True Cost of Fraud™ APAC Study

Tackle fraud challenges with optimal detection and prevention.

Digital transformation and the rapid rise of fintech companies have rapidly changed the behavior of merchants and consumers alike, resulting in a huge rise in digital payment methods and remote channels. But with greater convenience and speed comes risk.

LexisNexis® 2022 APAC True Cost of Fraud™ APAC Study analyzed fraud trends in retail, ecommerce, financial services, lending and alternative finance industries and spotlights key pain points related to new digital payment methods and transaction channels. The study found that the cost of fraud continues to rise across the surveyed industries for Malaysia, Thailand, the Philippines and Singapore.

Depending on the market, the cost of every fraudulent transaction is between 3.95 and 4.22 the actual lost transaction value. For firms tracking from just before the COVID-19 pandemic (2019), this presents a 10% - 16% rise depending on the market. The pandemic only added fuel to the fraud problem.

Key findings from the study:

Fraud is becoming more insidious for a number of reasons, particularly the acceleration of the digital transformation. Use of mobile apps and wallets, along with contactless payments, align with increased fraud costs. With the added challenge of identity verification, particularly at the new account creation and login stage, some trends begin to emerge:

Each market is battling significantly more fraud than before the COVID-19 pandemic, with financial institutions experiencing the sharpest increase.
Consumer and merchant behaviours have shifted towards online and mobile transactions, including more remote channel use, more digital payment methods and more omnichannel focus.
Buy Now, Pay Later (BNPL) apps account for just over one-tenth of payment method losses, which is disproportionately higher than the average volume of transactions through mobile apps.
Identity verification is a common challenge across the customer journey, with the need for more real-time data and transaction tracking tools.

Identity verification and difficulty determining transaction origination are common challenges

While intensity varies, identity verification — based on the rise of synthetic identities — is the top online channel fraud challenge cited by businesses. Ecommerce merchants in particular place more emphasis on point of sale as the riskiest phase in the customer journey, though they are more challenged with identity verification with account-based phases — particularly at the front end of new account creation where fraudsters gain a foothold into the business. Among the challenges hampering identity verification are:

	The rise of synthetic identities		Inability to confirm origination location
	A surge in the move to new digital payment methods		Limited access to real-time risk assessment data and tools
	Increased volume of botnet attacks		Difficulty in balancing speed with friction

Technology is key to detecting and mitigating fraud while minimizing friction. A multi-layered fraud defense approach, layering digital attributes, behavioral analytics and device assessment solutions is required at each phase of the customer journey and transaction channel to offer frictionless experience for genuine customers

Want to know more? Download the LexisNexis® Risk Solutions 2022 True Cost of Fraud™ APAC Study.

Key findings from the study:

Each market is battling significantly more fraud than before the COVID-19 pandemic, with financial institutions experiencing the sharpest increase.
Consumer and merchant behaviours have shifted towards online and mobile transactions, including more remote channel use, more digital payment methods and more omnichannel focus.
Buy Now, Pay Later (BNPL) apps account for just over one-tenth of payment method losses, which is disproportionately higher than the average volume of transactions through mobile apps.
Identity verification is a common challenge across the customer journey, with the need for more real-time data and transaction tracking tools.

Identity verification and difficulty determining transaction origination are common challenges

	The rise of synthetic identities
	A surge in the move to new digital payment methods
	Increased volume of botnet attacks
	Inability to confirm origination location
	Limited access to real-time risk assessment data and tools
	Difficulty in balancing speed with friction

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APAC Fraud Trends Uncovered Infographic APAC Fraud Challenges Infographic

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2022 True Cost of Fraud™ APAC Study

2022 True Cost of Fraud^TMAPAC Study – Malaysia

Find out which are the two major fraud threats currently faced by Malaysian SMEs.

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2022 True Cost of Fraud^TMAPAC Study – Philippines

Find out how the growth of Philippines’ e-commerce market is contributing to the increased in fraud cost.

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2022 True Cost of Fraud^TMAPAC Study – Singapore

Find out which channel attributed to the largest source of fraud costs in Singapore.

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2022 True Cost of Fraud^TM APAC Study – Thailand

Find out the transactional trends in Thailand and associated fraud costs.

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See the Results of Previous Studies

2021 True Cost of Fraud™ APAC Study - Australia

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2021 True Cost of Fraud™ APAC Study - Hong Kong

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2021 True Cost of Fraud™ APAC Study - India

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2021 True Cost of Fraud™ APAC Study - Japan

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2019 True Cost of Fraud™ APAC Study - Indonesia

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2019 True Cost of Fraud™ APAC Study - Malaysia

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2019 True Cost of Fraud™ APAC Study - Singapore

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2019 True Cost of Fraud™ APAC Study - Philippines

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Multi-Layered Risk Mitigation Solutions Thwart Fraudsters

2022 True Cost of Fraud™ APAC Study

Fraud attacks rose in 2022 according to True Cost of Fraud™ APAC Study

Tackle fraud challenges with optimal detection and prevention.

Key findings from the study:

Identity verification and difficulty determining transaction origination are common challenges

Key findings from the study:

Identity verification and difficulty determining transaction origination are common challenges

More Information

Complete the form to download the2022 True Cost of Fraud™ APAC Study

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2022 True Cost of FraudTM APAC Study – Malaysia

2022 True Cost of FraudTM APAC Study – Philippines

2022 True Cost of FraudTM APAC Study – Singapore

2022 True Cost of FraudTM APAC Study – Thailand

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See the Results of Previous Studies

2021 True Cost of Fraud™ APAC Study - Australia

2021 True Cost of Fraud™ APAC Study - Hong Kong

2021 True Cost of Fraud™ APAC Study - India

2021 True Cost of Fraud™ APAC Study - Japan

2019 True Cost of Fraud™ APAC Study - Indonesia

2019 True Cost of Fraud™ APAC Study - Malaysia

2019 True Cost of Fraud™ APAC Study - Singapore

2019 True Cost of Fraud™ APAC Study - Philippines

Related Resources

Products You May Be Interested In

ThreatMetrix®

Share

Complete the form to download the
2022 True Cost of Fraud™ APAC Study

2022 True Cost of Fraud^TMAPAC Study – Malaysia

2022 True Cost of Fraud^TMAPAC Study – Philippines

2022 True Cost of Fraud^TMAPAC Study – Singapore

2022 True Cost of Fraud^TM APAC Study – Thailand