Suspected digital fraud attempts in the Dominican Republic were highest in ‘gaming’ in 2023
4 minutes read
Despite the increase in the rate of digital fraud attempts in ‘communities’ and ‘financial services’, reports fell in most other industries.
Santo Domingo, Dominican Republic, Month, Day, 2024 – The rate of suspected digital fraud attempts in ‘gaming’ (online sports betting, poker, etc.), where the consumer was in the Dominican Republic when making the transaction, was the highest among the industries analysed in 2023, at 10.2%, despite the rate falling -5% year on year. As for the industries with the largest increase in the suspected digital fraud rate, ‘communities’ led with a 79% year-on-year rise. Some of these findings were revealed in TransUnion’s 2024 State of Omnichannel Fraud Report.
TransUnion also found that across all industries in 2023, 4.9% of all transactions in which the consumer was in the Dominican Republic were flagged as suspected digital fraud, a 36% year-on-year increase.
TransUnion’s report revealed that nearly one in seven newly created accounts (13.5%) were suspected of being created through digital fraud globally in 2023, largely driven by bad actors using fake or stolen identities. This could indicate a shift in tactics by fraudsters hoping to get involved earlier in the transaction process.
Examples of transactions that take place during account creation include account registration, enrolment and credit origination. Industries worldwide with the highest percentage of digital account creation transactions suspected of digital fraud in 2023 include ‘retail’ (44.7%), ‘travel and leisure’ (36.0%) and ‘video games’ (31.5%).
“This digital fraud at the initial stage of opening new accounts may represent something of a paradigm shift among fraudsters,” said Diana Martínez, TransUnion spokesperson in the Dominican Republic. “Rather than using traditional tactics to access and compromise existing accounts, they are increasingly choosing to create new accounts they can control themselves. These fraudsters take advantage of synthetic identities assembled largely from credentials harvested in one or more data breaches.”
By contrast, for transactions in which the consumer was in the Dominican Republic, the highest percentage of suspected digital fraud in the online customer journey occurred at account login, at 13.3%, varying widely by industry.
‘Retail’ had the highest suspected digital fraud rate globally in 2023, while ‘gaming’ had the highest suspected digital fraud rate in the Dominican Republic*
The study found that 5% of all global digital transactions were suspected of digital fraud in 2023, with the volume of risky transactions rising 14% year on year and 105% from 2019 to 2023. This increase continues to outpace growth in total digital transactions, which rose 90% from 2019 to 2023.
Globally, ‘retail’ overtook ‘gaming’ as the industry with the highest suspected digital fraud rate in 2023, at 8.7%, a 21% year-on-year increase. The ‘telecommunications’ industry also saw a 111% year-on-year rise in its suspected digital fraud rate, reaching 4.5%.
“In recent years, the global retail industry has consistently been among those with the highest rates of suspected digital fraud attempts. However, in 2023 we saw it climb to the top of the list,” said Diana Martínez. “As a result of credentials stolen in data breaches, often in industries other than retail, it has become increasingly easy for fraudsters to carry out attacks that leave retailers vulnerable to account takeover.”
TransUnion reached its conclusions on digital fraud based on intelligence from TransUnion TruValidate, its suite of identity and fraud products that helps ensure trust across channels and provides efficient experiences for consumers. The rate or percentage of suspected digital fraud attempts reflects transactions that TransUnion customers determined met one of the following conditions: 1) real-time denial due to fraud indicators, 2) real-time denial for corporate policy violations, 3) fraudulent following customer investigation, or 4) a corporate policy violation following customer investigation, compared with all transactions assessed.
‘Retail’ had the highest suspected digital fraud rate globally in 2023, while ‘gaming’ had the highest suspected digital fraud rate in the Dominican Republic*
| Industry | Rate of suspected digital fraud attempts in the Dominican Republic in 2023 | Year-on-year percentage change in the rate of suspected digital fraud attempts in the Dominican Republic | Global rate of suspected digital fraud attempts in 2023 | Year-on-year percentage change in the global rate of suspected digital fraud attempts |
| Gaming (online sports betting, poker, etc.) | 10.2% | -5% | 5.3% | -30% |
| Retail | 8.2% | -35% | 8.7% | 21% |
| Financial services | 7.4% | 28% | 4.3% | 3% |
| Government | 5.8% | -35% | 1.4% | -18% |
| Communities (online dating, forums, etc.) | 4.2% | 79% | 4.6% | 17% |
| Video games | 3.7% | 11% | 7.6% | 41% |
| Logistics | 1.7% | -15% | 0.9% | -30% |
| Travel and leisure | 0.9% | -15% | 2.3% | 8% |
| Telecommunications | 0.7% | -86% | 4.5% | 111% |
The report’s findings are based on proprietary information from TransUnion’s global intelligence network and include data from the Dominican Republic, Botswana, Brazil, Canada, Chile, Colombia, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia.
For more information and insights on global fraud trends, download TransUnion’s 2024 State of Omnichannel Fraud Report.
*Some industries were excluded from the Dominican Republic study due to a lack of statistically significant data.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with more than 13,000 associates operating in more than 30 countries, including Colombia. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing a multidimensional view of consumers, stewarded with care.
Through our acquisitions and technology investments, we have developed innovative solutions in areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good®, creating economic opportunity, great experiences and personal empowerment for millions of people around the world.
For more information, visit: https://www.transunion.do