Fraud Hotspots: Insights from IDfy’s Latest Study Reveal Dynamic Shifts Every Quarter
Nearly half of total fraud attempts concentrated in just 5 states
IDfy, India’s leading Integrated Identity Platform, has unveiled its latest study showcasing dramatic changes in fraud patterns across India every quarter. The findings, based on approximately 5.7 million Video KYC verifications across India, reveal a dynamic shift in regions reporting the highest percentage of fraud attempts#, emphasizing the evolving nature of fraudulent activities and the critical need for adaptive measures, with insights that could help businesses strengthen their risk mitigation strategies.
Key highlights of the study:
- Volume of fraud attempts:
Nearly half of the total fraud attempts, about 46%, were concentrated in just 5 states – Uttar Pradesh, Maharashtra, Rajasthan, Telangana & West Bengal.
- Fraud hotspots:
The same nine states, including Karnataka, Gujarat, Tamil Nadu, Andhra Pradesh & Bihar dominated the top ten fraud rankings in April as well as October, suggesting established fraud hotspots in these states.
- Changing Fraud Epicenters:
In March-April, Deeg emerged as the district with the highest percentage of fraud attempts at 16.93%. However, by September-October, the focus had shifted to Theni, demonstrating how fraud hotspots can transform within months.
- Volatility in State Rankings:
During March-April, Rajasthan, West Bengal, and Haryana topped the charts in terms of percentage of fraud attempts. By September-October, states like Tamil Nadu, Bihar, Jammu & Kashmir, and Madhya Pradesh took the lead, with none of the earlier top three states retaining their position.
- Border regions in the spotlight:
Border regions like Alwar, Deeg, West Champaran, Dakshin Dinajpur & Birbhum persistently demonstrated higher fraud attempts compared to inland regions. Operating from border areas makes it easy for fraudsters to escape to the adjoining state or country, and since there is a different jurisdiction there, it makes it difficult for authorities to catch hold of them.
Commenting on the findings, Ashok Hariharan, CEO and Co-Founder, IDfy said,
“The study underscores the critical need for adaptive fraud detection strategies. Fraudsters are constantly evolving, and today’s hotspot may vanish tomorrow. Businesses must remain agile and proactive to stay ahead of shifting trends. With IDfy’s technology-driven solutions, dynamic patterns are detected in real-time, enabling organizations to respond swiftly and effectively. This enables our customers to stay alert and ahead of the changing fraud hotspots by embracing advanced models for fraud detection. At IDfy, our mission is to empower businesses with the tools they need to mitigate risks and protect their customers in an ever-changing landscape.”
About the Company:
IDfy is an Integrated Identity Platform offering products and solutions for KYC, KYB, Background Verifications, Risk Mitigation, Digital Onboarding, and Digital Privacy. We establish trust while delivering a frictionless experience for you, your employees, customers, and partners.
Only IDfy combines enterprise-grade technology with business understanding and has the widest breadth of offerings in the industry.
With more than 12+ years of experience, 2 million verifications per day, and recognition in the Deloitte Technology Fast 50 2024 for the 3rd time, we are pioneers in this industry.
