UK Tops List of Countries Most at Risk of Identity Theft

Adyen, a leading global fintech firm, recently released a survey revealing a global ranking of countries most susceptible to identity theft. The UK emerged at the top, with victims of identity theft losing an average of £268.30 over the past year. This represents the highest amount lost per person across the 26 countries surveyed, amounting to a total loss of £3.1 billion to identity theft in the country.

Losses Amplified with Digital Currency Use

The survey also found that losses due to fraud were significantly higher for individuals using digital currencies like Bitcoin for online transactions. Approximately 77% of consumers reported being victims of identity theft while using this payment method, resulting in an average loss of £369.60.

Global Overview

Norway followed the UK, with victims losing an average of £255.60. In Denmark, the loss per individual averaged at £232.40. The survey also revealed that almost half (44%) of Indians have been victims of identity theft, albeit typically defrauded of smaller amounts (£159.50). In contrast, 42% of Americans have experienced this type of fraud, with an average loss of £229.80.

Fraud Deters UK Consumers from Online Shopping

Adyen’s research also demonstrated that consumers’ fear of fraud is affecting their online shopping behaviour. Approximately 46% of UK consumers are finding online shopping less appealing due to the risk of fraud. To protect themselves, 29% of consumers don’t allow their devices to remember payment details, while 27% are cautious with new payment methods.

Fraud Impact on Retail Sector

Adyen’s survey also encompassed 500 senior decision-makers in UK retail. Findings revealed that 33% of businesses experienced increased volumes of payment fraud over the past year. Over a third (35%) viewed fraudulent transactions and chargebacks as a significant cost to their business, and 17% considered increased fraudulent attacks as one of their greatest threats.

Retailers Urged to Enhance Fraud Prevention

Nearly two-thirds of Brits (64%) want retailers to better communicate what they’re doing to protect them from online identity theft. However, only 53% of businesses believe their fraud prevention systems are effective. The survey found that 32% of business leaders plan to double their fraud and risk team’s headcount in 2023. Additionally, 39% are implementing AI to prevent fraudulent transactions, and 41% are utilising chargeback management software to manage and reduce costs associated with fraud.

Adyen, headquartered in the Netherlands, provides a global fintech platform offering end-to-end payment capabilities, data-driven insights, and financial products. The company works with several high-profile clients including Facebook, Uber, H&M, eBay, and Microsoft.