The Cost Of Identity Fraud To Financial Services

Regula, in cooperation with Sapio Research, conducted a survey in December 2022 and January 2023 which uncovered a trove of valuable information about various sectors’ use of identity verification (IDV) solutions worldwide. In the second phase, we focused particularly on the Banking and FinTech sectors to explore the business impact of investing in IDV.
In this video, Ihar Kliashchou, Chief Technology Officer at Regula, covers some of the most important findings. For instance, the Banking sector is the most severely impacted financially by identity fraud. One in three banks suffered almost half a million dollars in related costs, and one in four banks reported over 100 identity fraud incidents in the past year.
For the FinTech sector, the number of incidents was lower, with only one in every six organizations reporting this level of fraud. This difference may be due to the larger scale and complexity of banks’ operations, their delayed adoption of digitalization, outdated IT systems, and the regulatory and reputational risks they face.
The survey also revealed that 93% of organizations recognize the significance of online identity verification in detecting and preventing fraud.