Australia experiencing "industrialisation of fraud"

One in 10 Australian smartphone users and 56% of Australian businesses have fallen victim to identity fraud in the past year, according to new research from identity verification and fraud protection solution provider GBG.

The company’s ‘Global State of Digital Identity 2023’ report found that 94% of Australian respondents are concerned about future fraud attempts, with 69% expressing concern that their personal information is available for sale by criminals on the internet.

More than half (56%) of Australian businesses experienced known or suspected fraud attempts in the last 12 months, the research found.

Of concern for businesses, the research found that more Australian respondents (86%) than the global average feel that it’s the responsibility of businesses they interact with to protect their data. But at the same time, 80% believe that responsibility also lies with themselves.

Meanwhile 62% of Australian businesses are concerned by the financial impact of a successful fraud attempt. Businesses are also concerned about the impact on their brand reputation (48%) and customer retention (45%). Four in 10 Australian businesses have also noticed an increase of identity takeover over the last 12 months.

GBG regional GM for Australia and New Zealand Carol Chris said the research shows that Australia is experiencing “a rapid industrialisation of fraud”, which is having major impacts on individuals and businesses.

“Fraud has long-term financial and emotional consequences for both businesses and customers,” she said.

“Businesses need to be on guard to stop fraudsters and scammers, especially those pretending to be genuine customers, to earn the trust of their customers by making sure that they are doing all that they can to keep them safe and secure online.”

Image credit: iStock.com/Tero Vesalainen