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Fraud

Global Fraud Patterns Shift as First-Party Fraud Emerges as Leading Type

Strategic Insights

— 1 min read

The 2024 Cybercrime Report, released by LexisNexis Risk Solutions, shows a significant shift in global fraud patterns, with first-party fraud now accounting for 36% of all reported fraud, representing a third of all cases in 2024. This marks a significant increase from 15% in the previous year. First-party fraud includes misrepresenting or giving false personal or account information for financial gain, such as applying for a loan, claiming a credit or debit card purchase is fraudulent to get a refund, or claiming ordered goods were not delivered. Buy Now, Pay Later (BNPL) providers and financial institutions are among the organisations reporting an uplift in first-party fraud, which is exacerbated by periods of inflation and the rising cost of living.

Key Takeaways:

  • First-party fraud accounts for 36% of all reported fraud in 2024, a significant increase from 15% in the previous year.
  • First-party fraud includes misrepresenting or giving false personal or account information for financial gain, such as applying for a loan or claiming a credit or debit card purchase is fraudulent to get a refund.
  • The rising cost of living and periods of inflation are likely contributing factors to the increase in first-party fraud.
  • Buy Now, Pay Later (BNPL) providers and financial institutions are among the organisations reporting an uplift in first-party fraud.
  • Account takeover (ATO) fraud accounts for 27% of global reported fraud, a decrease of ~2% year on year.
  • Scams, including authorised push payment (APP) fraud, represent 11% of cases, a decrease from 16% of cases in 2023.
  • One in nine (11%) password reset attempts in 2024 was a fraud attack, rising to over one in four (27%) reset attempts initiated on a desktop computer.

Statistics:

  • 104 billion global transactions were analyzed in the LexisNexis Digital Identity Network platform during 2024.
  • 36% of all reported fraud in 2024 was first-party fraud.
  • 27% of global reported fraud was account takeover (ATO) fraud, a decrease of ~2% year on year.
  • 11% of cases were scams, including authorised push payment (APP) fraud, a decrease from 16% of cases in 2023.
  • 27% of password reset attempts initiated on a desktop computer were fraud attacks.

Sources:

  • LexisNexis Risk Solutions' 2024 Cybercrime Report
  • LexisNexis Digital Identity Network
  • Stephen Topliss, vice president of fraud and identity, LexisNexis Risk Solutions
  • LexisNexis Risk Solutions' website
  • RELX (LSE: REL/NYSE: RELX) website

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