Investigating Fraud Statistics and the Case of Biometric KYC

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2Q 2022 | IN-6564


An Examination of Current Industry Fraud Statistics


Know-Your-Customer (KYC) policies have been more aggressively adopted by banks during the past years and especially since the onset of the COVID-19 pandemic. Among others, KYC refer to various processes related to digital identity registration, electronic document verification, proof of address, and, in recent years, biometric registration (primarily using fingerprint and face recognition), which have been introduced to combat transaction and identity fraud. The explosion of online sales during the market lockdown (especially during 2020 and early 2021) has caused a significant increase of Card-Not-Present (CNP) fraud.

In order to provide a succinct but data-driven examination, it is important to take a look at several statistics that are indicative of the level of fraudulent transactions. A few key statistics used for this examination include data from the US Federal Trade Commission, the US Department of Labor, the European Central Bank, and the European Payments Commission. In the US, the Federal Trade Commission (FTC) stated that it received 2.1 million fraud …

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