Feedzai's Q2 2022 Financial Crime Report reveals why 2021 was the year of RiskOps for FIs

Let’s face it: 2021 was a year for the books! It was the year we cheered the arrival of COVID-19 vaccines, witnessed an unprecedented off-year Olympic Games and space-bound billionaires, and cringed at supply chain woes. And as Feedzai’s Q2 2022 Financial Crime Report shows, it was also a great year for fraudsters - especially for those who operate in the digital ecosystem! 

The pandemic-driven shift to digital banking and eCommerce shows no signs of letting up. This rapid shift to digital has brought millions of new consumers into the world of digital banking and retail. This influx of new customers offers banks a once-in-a-generation opportunity to deliver more personalized products and service recommendations. Unfortunately, a look at over 18 billion exclusive transactions outlines how fraudsters are taking advantage of this new digital reality. For this reason, we’re calling 2021 the year of RiskOps.

The RiskOps Landscape

The concept of “online” has morphed from a type of activity to a lifestyle. In other words, it’s how many consumers now live. All signs indicate that we aren’t going back to a pre-COVID state of “normal” anytime soon. 

A rapid rise in digital customers has led to a surge in digital transactions. Today’s customers have grown accustomed to providers using data to make the right connections and provide personalized offerings and experiences in real time. They’re also using a wide array of devices and accounts to transact. All of which adds up to a perfect storm for fraud and financial crime.

While fraudsters look at the current landscape and see opportunity, risk teams should view it as a tipping point. We’re calling 2021 the Year of RiskOps because it’s the perfect time for organizations to change how they think about and manage financial crime risks.

Let’s take a closer look at why it’s time to take a hard look at the RiskOps landscape.

How Online Fraud Changed in 2021

Armed with basic coding skills and a familiarity with the dark web, fraudsters can launch large-scale attacks on online accounts before most of us sip our morning coffee. No wonder online fraud attacks rose by 233% between 2019 and 2021. 

Among the attacks reported at major organizations, Feedzai’s research found:

  • Over 5 million cards were tested over four months – a sign that fraudsters are turning to BIN attacks;
  • 30% of attempted online transactions were fraudulent – indicating a rise in card-not-present (CNP) fraud;
  • An alarming 4,000 social engineering attacks in 10 days.

Feedzai’s Q2 2022 Financial Crime Report also found:

  • A 794% increase in fraud targeting digital entertainment from 2019 to 2021;
  • A 75% drop in cash withdrawals from pre-pandemic levels indicates cash has failed to reclaim its crown;
  • Not all fraudsters are going digital – Florida saw a 202% rise in in-store credit card fraud

The RiskOps Age: Q2 2022 Financial Crime Report also breaks down the most popular types of scams in 2021, the categories of merchants most likely to be targeted by bad actors, and how fraud differs across different global regions. Read the exclusive report to learn how to manage today’s market risks while simultaneously preparing for the emergence of non-fiat currencies and new fraud and financial crime threats.

Is your bank prepared for the most serious online fraud threats? Download the Feedzai Q2 2022 Financial Crime Report to learn how to keep your customers safe.