Cyber fraud cases rose by 41.5% in South Africa
The accelerated digital transformation of companies in South Africa caused a 41.5% rise in cyber fraud cases in the county, said data analytics corporation LexisNexis.
In its latest LexisNexis True Cost of Fraud Study, the cyber fraud multiplier in South Africa is higher than the average recorded for Europe, the Middle East, and Africa (EMEA) region. It is also more than the cases recorded in Germany, France, the Netherlands, and the United Arab Emirates.
LexisNexis Risk Solutions Director of Fraud and Identity EMEA Jason Lane-Sellers said, “Fraud has become more expensive for businesses in part because the volume of both human and bot-originated fraud continues to target transactions at scale.”
Cybercriminals also learned to adapt to the changing behavior patterns of consumers, giving them more opportunities.
“With more consumers using a variety of channels to transact, there is no one-size-fits-all solution for businesses wanting to authenticate digital identities and reduce fraud losses,” added Lane-Sellers.
Fraud detection and prevention approaches in South Africa also lag far behind the EMEA average. Just 21% of South African merchants and financial institutions have fully integrated their digital customer experience operations with fraud prevention, the lowest rate among all other regions surveyed.
