Feedzai Financial Crime Report: 23% Increase in Online Sales


  • 146% increase in peer-to-peer (P2P) payments
  • The number of online transactions is almost double the number of in-person transactions
  • “Smishing” Joins List of Top 5 Scams For The First Time

SAN MATEO, California and LISBON, Portugal, October 07, 2021 (GLOBE NEWSWIRE) – Feedzai, the world’s leading cloud-based financial crime management platform, released its most recent Quarterly Financial Crime Report. The report analyzes trends in financial crime and consumer spending on more than 1.5 billion global transactions from April to July of this year. Six months after the start of the second year of a global pandemic, consumers’ shift to digital banking has only gotten stronger, according to the analysis. The data reveals a continued shift towards cashless transactions, with a 146% increase in P2P payments, a 44% decrease in cash transactions and a 109% increase in online transactions, almost doubling the number of transactions by card or in person. By focusing on digital payments, financial criminals have also shifted their targets online. The number of online card fraud attempts increased by 23% during this period.

“Cashless payments were already on the rise, but the pandemic accelerated all forms of digital transactions when lockdowns hit,” noted Jaime Ferreira, Senior Director of Global Data Science, Feedzai. “Millions more people have seen how convenient digital payments and banking are when they can’t get to a branch, restaurant or grocery store. Cashless transactions are no longer the future, they are today. But convenience comes at a cost. Financial institutions and retailers face the financial risk and more complex attacks that come with digital evolution. “

Top fraudulent scams

Along with the increase in fraud, the report also identified the top five fraudulent scams in the second quarter of 2021. Purchase scams, a type of scam where consumers pay for products or services that fail to arrive. ever, have taken the top spot due to the overall increase in online shopping. Another indication that consumers are increasingly relying on their cell phones, smishing scams are making their way into the top five for the first time. Smishing is the SMS version of phishing, where scammers send text messages to trick consumers into clicking dangerous links and sharing personal information.

The top five fraudulent scams were as follows:

  1. Buying scams
  2. Social engineering scams
  3. Identity theft scams
  4. Fraud by OPA (Account Takeover)
  5. Smishing scams

America’s most risky cities for fraud

With fraud on the rise, the report analyzed fraud rates geographically in the United States to reveal the cities with the largest increase in fraud over the past year. The most risky cities were:

  1. Las Vegas (with fraud up 411%)
  2. New York (+ 396%)
  3. Charleston (+ 251%)
  4. Nashville (up 193%)
  5. San Diego (+ 97%)
  6. Orlando (up to 80%)
  7. Chicago (up 56%)
  8. New Orleans (+ 48%)

Tips for consumers to prevent online fraud

The report includes tips for consumers to regain control and avoid falling victim to online fraud. Here are three tips from the report:

  1. Listen to your bank – Banks are constantly studying and educating themselves on the latest fraud trends. And they have a vested interest in protecting their consumers against fraud. Your bank’s educational resources are designed to protect you. Make sure you read / watch them and heed their advice.
  2. Use biometrics and 2FA – Enable biometric or two-factor capabilities on your mobile devices, such as face scans or one-time passwords. Not only do these solutions improve security, but they can also ensure a much smoother experience.
  3. Protect your information – Watch out for text messages, emails, or websites designed to trick you into revealing personal information. If you receive a suspicious communication claiming to be from your bank, don’t engage. Instead, report your suspicions to the bank.

Access Feedzai Quarterly Financial Crime Report to learn more about the latest fraud and consumer trends.

About Feedzai
Feedzai is the market leader in global trade protection with today’s most advanced cloud-based risk management platform powered by machine learning and artificial intelligence. Feedzai secures the transition to a cashless world while enabling digital trust in every type of transaction and payment. The world’s largest banks, processors and retailers trust Feedzai to protect billions of dollars and manage risk while improving the customer experience for everyday users, without compromising privacy. Feedzai is a Series D company and has raised $ 282 million to date with a current valuation of well over $ 1 billion. Its technology protects 800 million people in 190 countries. For more information visit feedzai.com.

Media contact:
Igor Carvalho
Global Communications Manager, Feedzai
[email protected]


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