There has been a shift in fraud away from the cryptocurrency space, with a decline of 51% in attacks, thanks to the enforcement of the Market in Crypto Asset (MiCA) regulation. With fraudsters finding it increasingly challenging to operate in the crypto market due to regulatory measures, their focus has turned to exploiting vulnerabilities in the payments sector.
The global identity intelligence company headquartered in Israel, AU10TIX, recently released its global identity report for the third quarter of 2023. This report delved into the ramifications of MiCA, emphasizing enhanced investor protection.
Moreover, it unveils how regulatory crackdowns in the crypto space are redirecting fraud efforts toward the payments sector. Conversely, the report detailed a 56% surge in fraud in the payments sector, driven by factors like increased digital transaction volumes in APAC and economic recovery in North America.
Ofer Friedman, AU10TIX’s Chief Business Development Officer, mentioned: “Organized crime groups are exploiting gaps in detection technology to orchestrate financial fraud on a massive level simultaneously across multiple businesses and geographies. Actual fraud rates are multiple times higher than reported.”
Expect ongoing updates as this story evolves…
