Fraudsters are targeting the Middle East with identity fraud attacks

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One in eight account creations is an attack across all digital services in the Middle East, according to data from LexisNexis Risk Solutions, a global data and analytics company.

This figure is higher than the global average of one in 10. “Fraudsters are targeting the Middle East with identity fraud attacks and false account creation,” Jason Lane Sellers, director of fraud and identity at LexisNexis told Khaleej Times in an interview.

The LexisNexis Fraud Multiplier for the UAE is 3.38, indicating that the actual cost of managing a fraud incident is 3.38 times the recorded revenue cost of the attack. For instance, if the cost is Dh10,000, the actual cost, on average, to manage and handle the incident is Dh33,800. The LexisNexis Fraud Multiplier for businesses in Europe, the Middle East and Africa (EMEA) is 3.49, Sellers said.

According to the LexisNexis Digital Identity Network, 76 per cent of transactions come from mobile devices, compared to 24 per cent via desktop. “This indicates that fraudsters are targeting the mobile experience and ‘super apps’ that are widely used in the Middle East,” Sellers said.

There has been a 38 per cent increase in the human-initiated attack rate on detail changes in 2022 compared to 2021. “This demonstrates an increasing level of targeted fraud against account details known as account takeover fraud. Fraudsters gain access to an account, change vital details and take control of the account in the digital space,” Sellers said.

To counter these threats, Sellers stresses that digital service providers need to focus on implementing effective customer authentication and validation measures in their digital services. “The insights from the LexisNexis Digital Identity Network show that the market appears to be behind in providing the appropriate security for digital services and attacks are occurring at an increasing rate. Providers often prioritize customer service or experience in their focus on digital services and they are hesitant to implement security controls that may cause friction. Advanced technology exists today like behavioral biometrics that works in the background and offers highly efficient protection services that do not affect the customer experience or create friction,” Sellers said.