Global Identity Fraud Is Shifting from Crypto to Payments, a Study Shows

Global identity intelligence company AU10TIX has released its report on identity fraud trends in the third quarter of this year. This report revealed a shift in global identity fraud from the cryptocurrency sector to the digital payments space.

The crypto sector, historically a hotbed for fraudulent practices, experienced a decline of 51% for fraud. In the digital payments space, however, there was a 56% increase in fraud. According to AU10TIX’s report emailed to AskFX, this shift is due to the impact of the EU Crypto Assets Market Regulations (MiCA).

Ofer Friedman, Chief Business Development Officer at AU10TIX, mentioned: “Organized crime groups are exploiting gaps in detection technology to orchestrate large-scale financial fraud across multiple organizations and regions simultaneously. Actual fraud rates are many times higher than reported.”

The impact of MiCA regulations

The introduction of MiCA laws marked a turning point in the crypto landscape, signaling the end of unregulated activity and a step towards investor protection .The impact of this Regulation Regulation Like any other high net worth industry, the financial services industry is strictly regulated to curb illegal behavior and manipulation. Each asset class has its own protocols to combat its respective forms of abuse. In the foreign exchange space, regulation is handled by authorities in multiple jurisdictions, despite ultimately lacking a binding international order. Who are the industry’s leading regulators? Regulators such as the UK’s Financial Conduct Authority ( Like any other high net worth industry The financial services industry is strictly regulated to curb illegal behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse. In the area of foreign exchange, regulation is handled by authorities in multiple jurisdictions, although there is ultimately a lack of a binding international order. Who are the industry’s leading regulators? Regulatory bodies such as the UK’s financial regulator Conduct Authority ( Read this term have led many companies worldwide to adopt stricter “Know Your Customer” practices, making it difficult for criminal organizations to operate in this sector.

As a result, fraudsters are shifting their efforts to the less regulated payments sector. The report revealed alarming statistics that indicate that the payments sector is the main target of organized fraud groups accounting for 51% of all fraud groups’ financial fraud attacks, a significant increase from 32% in the previous quarter.

In contrast, the crypto industry saw a decline, accounting for just 23% of attacks, up from 47%. (* ) From our directory

North America in particular proved to be the strongest affected region for attacks in the payments sector. This is attributed to fraudsters capitalizing on the economic recovery and increased spending. Meanwhile, the Asia Pacific region faced challenges due to the complexity of digital transactions and provided loopholes for fraud.

AU10TIX’s study is confirmed by a recent report published by AskFX, which indicates that the understanding and implementation of

Compliance Compliance In the financial, banking, investment and Insurance refers to compliance with established rules or orders laid down by the state regulator either as the provision of a service or as the processing of a transaction. Compliance in finance would also be a state of adhering to established guidelines or specifications. This designation may also include efforts to ensure that organizations comply with both industry regulations and state laws. Understanding Compliance: Compliance is a In finance, banking, investment and insurance, compliance refers to following the rules or orders set by the government regulator, whether in providing a service or processing a transaction. Compliance in finance would also be a state of adhering to established guidelines or specifications. This designation may also include efforts to ensure that organizations comply with both industry regulations and state laws. Understanding ComplianceCompliance is a Read this term standard that is important given the increasing number of cross-border transactions. Currently, third-party providers are struggling to protect the interests of their stakeholders. The gaps in regulatory frameworks exacerbate these challenges and require policymakers to take more forceful action to hold providers accountable for potential risks.

There was an increase in credit fraud on cross-border payment platforms due to limited credit assessment options. Furthermore, unclear policies hinder stakeholder protection and require institutional actors to establish working mechanisms.