Shipping Fraud Increased by 780.5 Percent Across the Globe in 2021

A global report released by Transunion has shown that shipping fraud is the fastest-growing type of digital fraud across the globe after increasing by  780.5 percent in 2021.

When compared to a two-year timeframe from 2019 to 2021, the TransUnion report shows shipping fraud grew more than 1,500+ percent.

Shipping fraud occurs when a buyer spoofs a shipping address or when a seller receives payment for goods or services, but never ships to the buyer.

While the menace covers several industries, the issue was most prominent in the logistics industry where consumers purchase goods online and are then reliant on third-party carriers for transportation and delivery of items.

“As consumers shifted from brick-and-mortar retailers to e-commerce platforms over the course of the pandemic, fraudsters gravitated toward areas where consumers were increasingly spending both time and money,” said Transunion.

Because online shopping has become the ‘new normal’ on a global scale, the propensity for shipping fraud has also increased.

As consumer adoption of digital channels has continued to accelerate, the global rate for all types of suspected digital fraud attempts increased 9.4 percent Year-on-Year from 2020 to 2021 and 52.2 percent from 2019 to 2021.

In addition to shipping fraud, other types of fraud that experienced large increases when comparing 2020 to 2021 include business identity theft (+113.8 percent) and identity mining/phishing attempts (+104.8 percent), which both showed high rates of annual growth.

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According to TransUnion’s recent survey of 12,500 adults worldwide, 62 percent of consumers reported identity theft as their greatest concern when it comes to digital fraud.

First-party fraud increased by 55.8 percent, scammer/solicitation by 53.9 percent, true identity theft by 26.4 percent, application fraud – first-party by 19.3 percent, and account takeover by 6.4 percent.

In Kenya, credit card fraud rose 68 percent whereas identity theft and phishing rose by 61 and 60 percent, respectively.

Today, almost all consumers across the globe are conducting the majority of their transactions online, covering everything from managing personal finances and shopping to conducting business matters.

This has led to an elevated consumer expectation in terms of both experience and security. To effectively mitigate digital fraud risks, businesses should ensure there are strong authentication processes in place as well as streamlined technology and multi-layered identity solutions. These solutions will help build trust with customers and thwart these fraud tactics.

Download the 2022 Global Digital Fraud Report to learn more. Specific country and regional data in the report include the United States, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, the Philippines, Puerto Rico, South Africa, Spain, and the United Kingdom.