Fraud costs and attack volumes remain significantly higher today than before the coronavirus pandemic, according to the LexisNexis® True Cost of Fraud™ Study: Financial Services & Lending.
The study found that the cost of fraud for U.S. financial services and lending organizations has increased between 6.7% and 9.9% compared with before the pandemic, which started significantly impacting the U.S. in early 2020.
Every $1 of fraud loss costs U.S. financial services firms $4, compared to $3.25 in 2019 and $3.64 in 2020.
Mortgage lenders have been seriously impacted by fraud, with mortgage fraud costs now 23.5% than just before the pandemic hit in early 2020.%.
Other key findings of the study include:
“With the accelerated movement to online/mobile transactions and payments, financial services and lending firms must continue to build out and enhance the digital customer experience while protecting against fraud,” says Christopher Schnieper, LexisNexis Risk Solutions director of fraud and identity.
“It is difficult for even the best trained professional to detect the increasingly sophisticated crime occurring in the remote digital channels without the aid of solutions that detect digital behaviors, anomalies, device risk, and synthetic identities.”