Fraud Increased by 3% in 2021 – says Shufti Pro’s Global ID Fraud Report

Fraud Increased by 3% in 2021 – says Shufti Pro’s Global ID Fraud Report

AI-powered digital identity verification solution provider, Shufti Pro, revealed new data in its Global ID Fraud Report 2021 which shows insights from ample research of 11 months of verification. The report highlights the changing fraudulent activities and advanced manipulation techniques that the company faced in 2021. Experts from Shufti Pro have also made fraud predictions that will threaten the corporate sector in 2022.

The ceaseless increase in ID and financial fraud with each passing year put the retailers and customers in unwanted situations. Shufti Pro captured around 33% of tampered identity documents solely in 2021. Sudan, Kenya, Cameroon, and Ethiopia were the primary targets of bad actors with biometric fraud attempts surpassing 50% in 2021. MRZ manipulation, counterfeit documents, and imitated security features are some of the reasons that caused an increase in fraud.

COVID-19 pandemic resulted as a big reason to further push the increase in fraudulent activities. The report found that the fraud rate recorded in 2020 was approximately 21%, while in 2021, even though the physical restrictions began to lift, the overall scam rate was increased by a whopping 3%. COVID-19 pandemic and the recurring lockdowns favored the fraudsters and they fully targeted the businesses and customers in the holiday season. Impersonation fraud, synthetic ID scam, account takeover, and chargebacks were some of the most encountered fraud attempts this holiday season.

“We are surprised to see the remarkable turn of fraudsters from simple manipulation of identity documents to tech-driven tampering to dodge identity verification,” said Victor Fredung, the CEO of Shufti Pro. “As we move on to 2022, I would advise businesses in every industry to employ robust mechanisms to combat identity thieves and financial criminals.”

The key takeaways from the report include:

  • Around 30% of the phishing emails sent every day are opened by victims and 12% of them click on the malicious link given. Considering the growing trends of fraud, it is observed that phishing attacks will be greatly used by fraudsters to carry out illegal activities
  • Millions were laundered through virtual assets in 2021 and considering the fraud cases it is predicted that crypto and NFT-based criminal activities will increase significantly in the coming years
  • The trends in remote working will provide fraudsters an edge to easily target companies that are employing remote working, especially during a pandemic
NSUR partners with Shufti Pro

NSUR partners with Shufti Pro

Reward-driven health and wellness-focused platform NSUR and AI-powered identity verification service provider Shufti Pro have entered into a strategic partnership to perform KYC and AML checks on cryptographic token users.

NSUR has collaborated with Shufti Pro for its state-of-the-art Know Your Customer (KYC) and Anti-money Laundering (AML) services to mitigate the risks of identity theft and money laundering. In the wake of the COVID-19 pandemic, as the concept of digitization has spurred great growth, it has also become a magnet for identity theft and online scams. Automated ID verification services offered by Shufti Pro can eliminate the risks of identity fraud while assuring compliance with regulatory requirements.

NSUR facilitates its customers with a vast network of services from reputable health and wellness retailers. Users can book a doctor’s visit and refill their prescriptions through NSUR’s telemedicine network and pharmacy benefit card respectively. NSUR will perform Shufti Pro’s KYC and AML on cryptographic token buyers to verify that the individuals are who they say they are and to prevent money laundering. The value protection program offered by NSUR will protect the token holders’ purchase value and assure them their value will be saved for two years. Not only this but the customer-centric services of NSUR provide token holders with a chance to claim back their lost value if they find that the value of holders’ protected tokens is less than what they paid for it.

KYC solutions rendered by Shufti Pro will monitor NSUR’s customers to ensure the company does not encounter any identity fraud. Shufti Pro’s AML screening identifies cryptographic token users against criminal watch lists, global sanctions, and Politically Exposed Persons (PEP) lists. These services can help NSUR to achieve online identity fraud prevention and compliance targets impeccably in one go.

“We are using ShuftiPro to perform KYC and AML on customers who are purchasing protected cryptographic tokens through NSUR’s Value Protection Program,” said Mark Peters, CEO of NSUR, “This program is one-of-a-kind, it is the first program we have ever seen in the cryptocurrency sphere to protect token holders’ purchase value. In short, through NSUR’s Value Protection Program, holders of protected tokens have peace of mind that the purchase value of their tokens will be protected against loss for two years. If at the end of two years, the value of holders’ protected tokens is less than what they paid for it, they can claim back the lost value from NSUR’s website,” he further added, “Thanks to ShuftiPro, we also have peace of mind that the people who are purchasing with NSUR are who they say they are and that they are not engaged in nefarious activities.”

Commenting on the partnership between two companies, Victor Fredung, CEO of Shufti Pro said, “We are delighted to provide KYC and AML services to NSUR’s clients. The services delivered by Shufti Pro will definitely help NSUR to verify users in less than a second thus ensuring the best customer experience.”

AI-Powered identity verification solution provider, Shufti Pro currently offers its KYC and AML services to 500 businesses worldwide. Employing a hybrid approach of AI and HI technology, Shufti Pro has extended its services to 230+ countries and territories.

Morpho Labs partners with Shufti Pro

Morpho Labs partners with Shufti Pro

Morpho Labs, a software company committed to the development of open-source blockchain programs, and Shufti Pro, an AI-powered ID verification service provider, have signed a strategic partnership to perform KYC and AML checks on investors that wanted to fund the company with cryptocurrencies.

With global regulators imposing stringent KYC and AML requirements on the cryptocurrency industry in recent years, effective KYC solutions have become vital for streamlining compliance. AI-powered KYC and AML services delivered by Shufti Pro will assist Morpho Labs in maintaining compliance with regulatory requirements.

Automated ID verification solutions offered by Shufti Pro will monitor Morpho Labs’ investors, assuring the mitigation of financial frauds through cryptocurrencies. Shufti Pro’s AML screening solution verifies the crypto users by screening them against Politically Exposed Person (PEP) lists, global sanctions, and criminal watch lists gathered by regulatory bodies such as FINTRAC, FATF, AUSTRAC along with others. With the help of these services, compliance targets and digital ID fraud prevention will be achieved seamlessly in one go.

“Shufti Pro definitely helped us to perform KYC and AML checks for funds that invested In Morpho Labs with cryptocurrencies” stated CEO of Morpho Labs Paul Frambot.

Commenting on the partnership, the CEO of Shufti Pro, Victor Fredung said, “We are excited to join hands with Morpho Labs in delivering state-of-the-art KYC and AML solutions for the crypto industry. We believe this collaboration will certainly mitigate the risks of identity and monetary fraud for Morpho Labs and will assist them in staying compliant with global KYC and AML requirements”.

AI-based identity verification solution provider Shufti Pro currently offers ongoing AML monitoring and KYC services to more than 500 businesses worldwide, in industries including finance, banking, crypto, and fintech among others. The company has extended its services to 230+ countries and territories and has won various awards owing to an accuracy rate of 98.67%.

CEO Shufti Pro Victor Fredung speaks at US Congress hearing

CEO Shufti Pro Victor Fredung speaks at US Congress hearing

A congressional virtual hearing was held on the 16th of July 2021 by the US Financial Services Task Force on Artificial Intelligence, examining key points related to digital privacy.

Speakers at the hearing included experts in the field of digital technology and security. Victor Fredung, the CEO of Shufti Pro, was invited to give his testimony at the hearing and emphasized how Shufti Pro is making the financial structure secure through the use of AI technology for identity verification.

The hearing entitled “I Am Who I Say I Am: Verifying Identity while Preserving Privacy in the Digital Age” discussed a variety of issues, including the future of digital identity, how best to protect data and digital privacy, making AI more inclusive and diverse, and the use of technologies, such as blockchain.

At the hearing, Victor Fredung mentioned his support for the “Improving Digital Identity Act of 2020” and explained how a unified framework is needed in the United States due to vast variations in ID document types and regulatory requirements across the country.

“We strongly suggest the pursuit of a universal framework that each state (in the US) needs to follow when it comes to the selection of ID documents and a unified requirement when it comes to what information needs to be verified and how verification should be performed in all states,” stated Fredung.

The hearing also highlighted the emerging threat of identity theft in the US, where Rep. Bill Foster stated that the FTC received over 1.3 million complaints related to identity theft from US consumers in 2020.

Responding to this, Fredung added that since 2017, Shufti Pro has been combating identity theft by utilizing AI and ML models in its identity verification solutions. With the help of document authentication, anti-spoof checks, liveness detection, and optical character recognition (OCR) technology, fraudulent documents and identity thieves are detected with an accuracy rate of almost 99%.

Fredung further added that while the use of blockchain for data sharing and storage is in its early stages at the moment, “it is definitely something to look out for in the future”.

DiRoma Eck & Co. LLP., the Washington-based advisory and government relations firm that assisted Shufti Pro in getting the opportunity to speak at the hearing, commended the issues raised by Fredung. “Shufti Pro’s CEO, Victor Fredung, provided the Financial Services Committee with valuable and insightful testimony from the perspective of the AI-powered digital identity verification industry. The U.S. Congress will benefit from Shufti Pro’s testimony as it continues to legislate and conduct oversight of the banking and financial technology industries,” said Michael DiRoma, Co-founder and Partner, DiRoma Eck & Co. LLP.