The True Cost of FraudTM
As digital transformation continues apace in financial services and retail the latest LexisNexis® True Cost of Fraud™ Study reveals that cybercriminals are attacking a wider set of payment methods and driving up the cost of fraud to new highs.
Incidents of cyber fraud impacting South African businesses and consumers are growing at a rapid rate, with mobile payment channels becoming especially lucrative for criminals.
The report shows that for markets with comparable 2019 data the fraud multiplier has increased by 12.3% in Germany, 27.2% in France, 34.6% in the Netherlands and 41.5% in South Africa.
Download the report below:
The latest LexisNexis Fraud Multiplier for South Africa has increased by 41.5% compared to 2019 – more than Germany, France, the Netherlands, and the United Arab Emirates – and is higher than the EMEA average. The average transaction volume via mobile channels in South Africa has almost tripled since 2019, according to LexisNexis. Payments processed through digital or mobile wallets represent a similar share of transaction volumes as credit or debit cards. The use of third-party apps – those created by someone other than the manufacturer of a mobile device or its operating system – has almost doubled. Fraud costs associated with mobile channels have soared. Losses incurred through third-party mobile apps have seen the biggest increase and now account for almost a third of fraud costs within the mobile channel. Fraud through mobile web browsers still accounts for the largest share.