October 4, 2022

Digital fraud attempts in Brazil increase by 20% in the second quarter of 2022

This is a machine translation of TransUnion’s press release São Paulo, September 15, 2022 –…

Digital fraud attempts in Brazil increase by 20% in the second quarter of 2022

This is a machine translation of TransUnion’s press release

São Paulo, September 15, 2022 – For the second consecutive quarter, the rate of global digital fraud attempts in the insurance industry recorded the largest year-over-year increase, growing 159% compared to the period from April 1st to June 30th, 2022. 2022 with the same period of 2021. The trend was also of growth in the rate of attempted digital fraud between January 1 and March 31, 2022 compared to the same period in 2021 (+134%).

Despite this escalation, TransUnion ‘s (NYSE:TRU) Quarterly Fraud Trends analysis noted that the rate of attempted digital fraud across all industries declined globally by -14% compared to Q2 2022 with Q2. quarter of 2021. For transactions originating in Brazil, attempts at digital fraud increased by 20% in the same period.

TransUnion reached its conclusions about attempted fraud against companies based on billions of transactions evaluated across more than 40,000 websites and applications contained within its flagship suite of digital risk behavior and fraud analysis solutions – TransUnion TruValidate™. Fraud attempt percentages are those in which TruValidate client companies received a recommendation for review or denial as a result of reporting fraud indicators, compared to all transactions that were evaluated for fraud.

Segments that saw the biggest declines in suspected digital fraud rates globally in Q2 2022 compared to Q2 2021 included gaming, travel & leisure and retail. TransUnion saw global growth only in the insurance and logistics sectors during this period.

Fraud for its own benefit was the main fraud carried out in the insurance segment worldwide. This type involves fraudulent applications containing intentionally inaccurate or manipulated information provided by the insured in order to receive certification, lower rates or better conditions for a policy/contract.

“We see worrying trends in the first half of 2022, with suspicions of fraudulent activity in the insurance industry continuing to increase over the period,” says Shai Cohen, Senior Vice President, Global Fraud Solutions at TransUnion. “Over the past few years, we’ve noticed fraudsters shift their focus on the industry every quarter. Right now, we believe the insurance industry is falling victim to ‘softer fraud’ because some consumers may be misrepresenting their policies in an effort to save money, especially in a high-inflation environment that puts more pressure on their pockets.”

Suspected digital fraud migrates to new industries globally

Sector

Q2 2022 rate change compared to Q2 2021

insurance

159%

Logistics

13%

Communities and networking sites

-8%

Telecommunications

-12%

Financial services

-22%

Retail

-28%

travel & leisure

-28%

games

-63%

Types of fraud and impacts on Brazilian industry

For transactions originating in Brazil, the sector with the highest increase in the suspected rate of digital fraud in the second quarter of 2022, compared to the same period in 2021, was communities and social networking sites, which increased by 67%. In parallel with this data, TransUnion also observed the biggest drops in attempted fraud in the country in the gaming sectors (-88%), retail (-48%), travel and leisure (-45%) and financial services (-19% ).

Although the segment of communities and social networking sites was the only one to show an increase in the period, the types of fraud attempts were diverse. The top ones Brazilians reported across all industries in TransUnion’s Q2 2022 Consumer Pulse study were stolen credit cards or fraudulent charges and gift card scams.

Digital fraud attempts by sector in Brazil

Sector

Q2 2022 rate change compared to Q2 2021

Communities and networking sites

67%

Logistics

-4%

Telecommunications

-5%

Financial services

-19%

travel & leisure

-45%

Retail

-48%

games

-88%

Digital fraud continues to be a constant in the lives of many Brazilian consumers. TransUnion’s Q2 2022 Consumer Pulse Study reported that 27% of Brazilian adults surveyed indicated they had been targeted by digital fraud in the past three months, three percentage points higher than in Q1 2022’s study. In the second quarter of 2022, nearly nine in 10 people (85%) indicated concern about sharing their personal information, citing privacy concerns (74%) and fear of having their identity stolen (72%).

“With this analysis, we can see that people are increasingly concerned about their privacy and the protection of their data and identity theft, thus, industries are investing more and more in security solutions and, in this way, preventing frauds. ”, highlights Alexandre dos Reis, Head of Solutions at TransUnion Brasil. “The use of simplified technology and multi-layered prevention solutions are some of these examples and help, in a practical and effective way, to build trusting relationships with customers and prevent fraud attempts.”

For global and regional details on how much the attempted digital fraud rate has changed recently and what types of fraud are most prevalent in certain industries, visit this link.

About TransUnion

TransUnion is a global information and insights company that trusts companies and consumers to achieve great things in the modern economy. We do this by providing a multidimensional view of each person so that they can be represented reliably and symmetrically in the market, enabling greater financial inclusion. As a result, businesses and consumers can transact with confidence, helping drive results. We call this Information for Good®.

TransUnion has been in the market for over 50 years, with a presence in more than 30 countries and on five continents. It has been operating in Brazil for 10 years, since 2012, with the purpose of Helping to Improve People’s Quality of Life. The company creates economic opportunity, empowers consumers and supports hundreds of millions of people in industries including Financial Services, Insurance, Telecommunications, Retail, FinTechs, Industries and SMEs – Small and Medium Enterprises.