UK Cyber-Crime on the Rise

By Henry Thomas on Monday 21 September 2015

Alternative Lending

ThreatMetrix has unveiled its latest research into cyber-crime. The results suggest that UK businesses are attracting record numbers of attacks, with online lenders targeted most heavily.

The ThreatMetrix Digital Identity Network analysed 3 billion transactions during a 3 month period in order to compile the report. The data showed that UK businesses were attacked 50% more than in the US, making them the most attacked in the world. The most common sources of fraud in the UK were Nigeria, Germany, US and Mexico. Interestingly, the UK also has the second highest origination rate of fraudulent attacks.

Dr Stephen Moody – Solutions Director at ThreatMetrix – commented on the rise in online lending fraud:

“Online lending is a hotbed for fraud because it is an insecure channel and targets the unbanked and underbanked population in developing countries – which tends to be a big target for attackers”

“The more business and consumers turn to the digital space to store and manage their financial information, the more fraudsters will be on high alert – ensuring digital identities are effectively protected should be high priority for everyone.”

Perhaps part of the reason for this trend is the popularity of mobile as a means of access. ThreatMetrix estimate that mobile devices make up a third of all transactions. Whilst this does offer a big opportunity for businesses and financial institutions that aim to deliver a frictionless experience, Dr Moody pointed to the inherent risks that come with the increased use of mobile technology:

“The more mobile transactions you have, the more opportunities will arise for fraudsters to conduct spoofing attacks or identify theft by increasingly impersonating other devices to facilitate attacks”

“With consumers constantly on the go, they prefer iPhones over IPads after work hours and on the weekend, indicating that are more likely to conduct transactions and submit payments that can compromise their digital footprints”

In light of this news, perhaps AltFi’s recent conversation with AU10TIX – a company which is helping platforms like Zopa and RateSetter detect and prevent fraud – becomes all the more significant. 

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