LexisNexis Risk Solutions Cybercrime Report Reveals 19% Annual Increase in Global Human-Initiated Digital Attack Rate

Rhea-AI Summary

LexisNexis Risk Solutions has released its annual Cybercrime Report, revealing a 19% increase in global human-initiated digital attacks in 2023. Human-initiated attacks surged by 40% in volume, while automated bot attacks increased by 2%. The report highlights a significant rise in eCommerce attacks, particularly through account takeovers, with the attack rate at login increasing by 119% YOY. The study identifies cybercriminals operating from remote scam centers in Southeast Asia. Regulatory changes and advanced bot detection technologies are being used to combat these threats.

Positive

• Human-initiated digital attacks surged by 40%, indicating increased vigilance and detection capabilities.
• The number of ecommerce transactions increased by 7% in 2023 despite rising interest rates and global inflation.
• Regulatory changes and advanced bot detection technologies are being deployed to mitigate fraudulent activities.
• The LexisNexis Identity Abuse Index provides detailed insights into cyberattack trends and patterns.

Negative

• Global human-initiated digital attack rate increased by 19% YOY, reflecting a growing threat.
• The volume of human-initiated attacks surged 80% YOY, leading to an attack rate of 2.8%.
• Account takeover attacks in eCommerce reached 3.3% at login, a 119% increase YOY.
• Cybercriminals are utilizing remote scam centers in Southeast Asia to launch attacks.

Insights

Cybersecurity Analyst

The 19% increase in global human-initiated digital attacks indicates a rising threat landscape, especially for ecommerce. This significant surge in attacks, particularly in North America, suggests that companies need to bolster their cybersecurity measures to defend against increasingly sophisticated cyber threats. The report highlights that account takeovers (29% of fraud cases) are a prevalent issue, which implies that both businesses and consumers need to be vigilant about securing personal information and implementing robust authentication measures.

The growth in human-initiated attacks versus automated bot attacks, which saw a modest increase, points to a shift in cybercriminal tactics. This trend could lead to a higher demand for advanced fraud detection solutions that focus on human behavior analytics rather than just automated defenses. For investors, this might signal opportunities in cybersecurity firms that specialize in these advanced technologies.

Market Research Analyst

The report's findings on regional variations in attack rates provide insights into the geographic distribution of cyber threats. The increase in ecommerce transactions by 7% amidst rising interest rates and global inflation underscores the resilience of the ecommerce sector, yet also highlights its vulnerability to cyber attacks. With North America surpassing Latin America in attack rates, businesses in these regions should prioritize cybersecurity investments.

The mention of regulatory changes and clearer liability frameworks suggests a trend towards more stringent cybersecurity regulations. This could benefit companies that are early adopters of compliance measures, providing them with a competitive edge. Investors might want to monitor companies that are proactive in cybersecurity and regulatory compliance as they are likely to be better positioned in such an evolving landscape.

• Volume of human-initiated attacks surged by 40%, while automated bot attacks increased by 2%.
• Cybercriminals are utilizing remote scam centers based in Southeast Asia to launch attacks on consumers globally.
• Third-party account takeover is the most common fraud classification reported by clients (29% of all classifications).

ATLANTA, May 22, 2024 /PRNewswire/ -- LexisNexis® Risk Solutions today released the results of its annual Cybercrime Report, an analysis of data from 92 billion transactions processed through its LexisNexis® Digital Identity Network® throughout 2023. The report, Confidence Amid Chaos, reveals a 19% year-over-year (YOY) increase in the global human-initiated digital attack rate compared to the previous year. Cybercriminals' expanding scale of activity is reflected in the rising attack rate, particularly in ecommerce and across North America.

The LexisNexis® Identity Abuse Index, which records the percentage of attacks per day, shows that attack rates spiked at both the beginning and end of 2023. A significant factor was that North America's attack rate rose to meet and then surpass that of Latin America throughout the year.

The number of ecommerce transactions increased modestly by 7% in 2023, as rising interest rates and global inflation cooled consumer spending. However, where consumers held back, fraudsters became more active. The volume of human-initiated attacks surged 80% YOY, resulting in an attack rate of 2.8% (up by 59% YOY). A key component of this growth in attacks was fraudsters' focus on account takeover of ecommerce accounts, with the attack rate at login reaching 3.3% (an increase of 119% YOY).

Greater adoption globally of 3D Secure to mitigate the risk of fraud from Card-Not-Present (CNP) transactions is just one method businesses are employing to confront the heightened threat posed by cybercriminals. Regulatory changes in specific markets, such as establishing clearer liability frameworks, serve as a model for enhanced global cooperation aimed at minimizing the impact of digital activities carried out by criminals.

"Cybercriminals continue to increase the scale and complexity of their illegal operations, with dedicated scam centers becoming a permanent fixture to mount digital attacks on consumers worldwide," said Stephen Topliss, vice president of fraud and identity, LexisNexis Risk Solutions. "While these scam centers will continue to drive the threat of human-initiated attacks, organizations cannot afford to be complacent about the growing sophistication of bots, which can display more human-like behavior to evade traditional prevention solutions. By focusing on identifying advanced bots in real time, businesses can mitigate their ability to create fraudulent accounts or test stolen login credentials for future account takeover attacks."

Key findings from Confidence Amid Chaos:

• Third-party Account Takeover Takes Top Spot – Third party account takeover fraud was the leading type of fraud reported by clients in 2023, contributing 29% of fraud classifications reported, aligning with the strong attack rate growth seen at account login in 2023 (up 18% YOY).
• Human-Initiated Attacks Experience Rapid Growth – While bot-initiated attacks maintained a steady 2% YOY growth to reach 3.6 billion, human-initiated attacks surged by 40% in volume to 1.3 billion.
• Remote Scam Centers Drive Fraud – Device data, including high-altitude behavioral biometrics telemetry, reveals that parts of South-East Asia are established homes for dedicated remote scam centers. Cybercriminals favor border areas in Cambodia, Myanmar and remote parts of Thailand, according to data from the Digital Identity Network.
• New Challenges Confront Bot Attacks – Automated bot attack rates remained steady in 2023, partly due to the threat posed by advanced bot detection capabilities to this attack vector. These capabilities involve detecting bot traffic that mimics the locations of legitimate customers via IP proxies, along with identifying abnormal timing of events and unusual on-page or in-app behaviors. Businesses are increasingly employing proxy piercing technology to break the anonymity of cybercriminals attempting to conceal their behavior through the use of virtual private networks (VPNs).

Download a copy of Confidence Amid Chaos: The LexisNexis® Risk Solutions Cybercrime Report 2023.

Methodology
The LexisNexis Cybercrime Report analyzes a subset of 92 billion transactions, excluding non-transaction-based events such as feedback data and test transactions, as well as transactions from organizations considered outliers based on extremely high or zero recorded reject rates to calculate overall transaction volumes globally and by region.

About LexisNexis Risk Solutions 
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit risk.lexisnexis.com and www.relx.com.

Media Contact:
Ade O'Connor
+44 7890 918 264
ade.o'connor@lexisnexisrisk.com 

 

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SOURCE LexisNexis Risk Solutions

FAQ

What was the increase in human-initiated digital attacks reported by LexisNexis Risk Solutions in 2023?

The report revealed a 19% increase in global human-initiated digital attacks in 2023.

How much did human-initiated attack volumes increase in 2023?

Human-initiated attack volumes surged by 40% in 2023.

What was the increase in account takeover attacks in eCommerce in 2023?

Account takeover attacks at login in eCommerce increased by 119% year-over-year in 2023.

Which regions are identified as bases for remote scam centers used by cybercriminals?

Cybercriminals are utilizing remote scam centers in Southeast Asia, specifically in Cambodia, Myanmar, and Thailand.

What is the purpose of the LexisNexis Identity Abuse Index?

The LexisNexis Identity Abuse Index records the percentage of digital attacks per day, providing insights into cyberattack trends.

How are businesses combating bot attacks according to the report?

Businesses are employing advanced bot detection technologies and proxy piercing to break the anonymity of cybercriminals.