Financial Crime World

Title: Significant Revenue Losses from Payment Fraud in Singapore: Synthetic Identity Theft and Account Takeover top Concerns for Merchants

Overview

  • Nine out of ten Singapore companies suffered payment fraud resulting in revenue losses in 2020 according to a survey by Worldpay from FIS [1]
  • Synthetic identity fraud (58%) and account takeover fraud (60%) posed significant threats to over half of surveyed merchants in the city-state [1]
  • This puts Singapore slightly above the regional average of 84% in Asia-Pacific reporting revenue losses due to payment fraud [1]

Key Findings

  • Investment in Technology and Regulatory Compliance prioritized over Fraud Detection
    • For merchants in Singapore, investment in emerging technology and regulatory compliance are the highest priorities [2]
    • Fraud detection is a lower priority for Singapore firms [2]

Types of Payment Fraud

Synthetic Identity Fraud

  • Involves the use of both real and fake information to create a false identity [1]
  • Affected 61% of firms in Asia-Pacific, most globally [1]
  • Differs from traditional identity theft as the fraudster creates an entirely new, fabricated identity [1]
  • Minors targeted due to less checked national identification numbers [1]

Account Takeover Fraud

  • Gained access to an existing account using stolen information [1]
  • Enabled unauthorized transactions [1]
  • Surged, especially through social media channels [1]

Other Fraud Schemes

  • Card Testing Fraud
    • Fraudster tests card credentials on e-commerce websites [3]
  • Ransomware Attacks
    • Doubled in Singapore last year [3]

Recommendations

Merchants

  • Analyze login information’s IP and geolocation data [1]
  • Stay informed and implement anti-fraud tools against card testing and account takeover fraud [4]

Consumers

  • Regularly review credit reports for suspicious activity [1]
  • Maintain strong password hygiene and avoid sharing sensitive information on social media [1]

Conclusion

  • Singapore merchants face a significant challenge in combating payment fraud with investment in emerging technology and regulatory compliance prioritized over fraud detection [2]
  • Synthetic identity fraud and account takeover fraud are the most pressing concerns for Singaporean merchants [1]
  • Both merchants and consumers need to collaborate and remain vigilant to minimize the impact of payment fraud schemes [4]

[1] - Worldpay from FIS survey [2] - Philip Pomford, Worldpay from FIS [3] - Unspecified source [4] - Expert recommendations