Sumsub adds Fraud Network Detection to fight plague in APAC region

Rick Steves

“We’ve detected fraud networks ranging from three to over 750 users. In Myanmar and other Southeast Asian countries, cyber scam rings target victims with fraudulent schemes like fake jobs or investments. The issue raises diplomatic concerns and deters Chinese tourists from traveling to the region.”

Sumsub has enhanced its Fraud Prevention Solution to help combat the growing threat of fraud networks in the Asia-Pacific (APAC) region.

Targeting a broad spectrum of fraud-related issues, including account takeovers, chargeback fraud, and bot attacks, among others, the upgraded anti-fraud solution now includes Fraud Network Detection to prevent serial fraud.

Fraud network activities in APAC is significantly higher

Fraud networks, or fraud rings, consist of individuals collaborating on various digital platforms to engage in activities such as multi-accounting, money laundering, and personal data breaches. Sumsub’s research indicates that about 1% of digital platform users worldwide were affected by fraud ring activities in 2023, highlighting the critical need for robust fraud prevention measures.

The incidence of fraud network activities in APAC is significantly higher than in other regions, with Asia experiencing an average fraud network incident rate of 2.6%. Countries like Bangladesh, Thailand, Vietnam, and Indonesia show particularly high rates, underscoring the widespread nature of the problem across both developed and developing markets in the region.

Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub, emphasized the evolving threat posed by fraud networks, likening their potential impact to that of AI-powered deepfakes. He stressed the importance of businesses being proactive in protecting their platforms against these threats.

Sumsub’s upgraded Fraud Prevention Solution leverages advanced anti-fraud technologies and a unique database containing information on two million fraudsters. This comprehensive approach enables businesses to detect and track fraud rings more effectively. The solution incorporates Detect & Act capabilities, action alerts for automated additional checks, and a multi-layered fraud prevention strategy that includes Identity Verification, Behavioral Intelligence, and AI-based Event Monitoring.

This advanced Fraud Prevention Solution is designed to protect businesses across various sectors, including fintech, e-commerce, and iGaming, helping them to build user and regulatory trust by going beyond traditional anti-fraud and KYC methods.

Cyber scam rings target victims with fake jobs or investments

Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub, said: “We’ve detected fraud networks ranging from three to over 750 users. In Myanmar and other Southeast Asian countries, cyber scam rings target victims with fraudulent schemes like fake jobs or investments. The issue raises diplomatic concerns and deters Chinese tourists from traveling to the region. Fraud networks, however small they may seem right now, will gain prominence, just like AI-powered deepfakes. The damage of fraud rings is much more significant than that of individual scammers. Businesses must be prepared for this and protect their platforms in advance”.

Vyacheslav Zholudev, CTO and co-founder of Sumsub, added: “Fraudsters are becoming more tech-savvy, presenting a threat for digital services and their users. Sumsub’s comprehensive solution for fraud prevention is based on machine learning algorithms detecting all possible fraud types at every stage of the user journey. To flag suspicious user activity, our system is equipped with a range of fraud prevention tools including Identity Verification, Behavioural Intelligence, Device Fingerprinting, Fraud Risk Scoring, Deepfake Detection, Email and Phone Risk Assessment, and AI-based Event Monitoring. The solution now also applies Fraud Network Detection to stop serial fraud.”

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