June 4, 2024

Online scams takes top spot in LSEG global fraud league table

·         Reports of Invoice and tax frauds take second and third spots respectively

·         Fraud most recorded type of financial crime

·         USA followed by India and China are top countries for reported fraud

·         Nearly two-thirds of fraud reportedly committed by men

·         Inaugural fraud analysis by LSEG Risk Intelligence

Online fraud has been the most frequently recorded individual type of fraud in the post-COVID era – accounting for 17% of cases according to the inaugural fraud analysis by LSEG Risk Intelligence.

From a total of 545,000 reported fraud cases across 224 countries, invoice and tax fraud took second and third spots with 11% and 7% respectively.

Across the board, fraud was the most recorded type of financial crime, accounting for 37% of records reviewed, followed by Control and Regulation Violations with 12% and Forgery and Uttering with 7%. In the majority of fraud cases which were reviewed as part of this analysis, other types of financial crime risks were present, as other types of crime were identified, including but not limited to narcotics trafficking, violent crime and extortion.

The USA had the most reported number of fraud cases, with just over a quarter (26%) of the global total, followed by India on 11% and China on 8%. On a city level, Mumbai was responsible for the most reported frauds with 22,601, followed by Buenos Aires with 20,625 and New Delhi, some way behind with 8,569.

A demographic breakdown suggests that 62% of all alleged frauds are perpetrated by men, 20% by women, with entities being connected to 16% of cases. 50s and 60s were the most common age group making up 43% of alleged perpetrators, followed by 30-40s slightly behind with 42%, 70-80s with 10% and 20s and below with 5%.

Additionally, over half of those accused didn’t act alone. 52% had associates they reportedly perpetrated the fraud with. LSEG’s analysis also demonstrated the extent to which criminals are exploiting the synergies between various types of financial crimes, such as money laundering and corruption to maximise profits and minimise detection.

Che Sidanius, Head of Financial Crime at LSEG Risk Intelligence, comments: “As much of our lives and interactions are online, it’s not surprising that criminals are also taking advantage of these channels to deceive people with a rise of more nefarious forms of fraud, some targeting the elderly and those looking for love.

“This convergence of crime poses a significant challenge to regulators, financial institutions, and corporations, requiring a comprehensive and nuanced understanding of the risks involved. This also necessitates an increase in private-public partnering such as information sharing across borders to meet these threats.”

Contacts

LSEG Press Office

Nsikan Edung

+44 (0)20 7797 1222

newsroom@lseg.com
www.lseg.com

Notes to Editors:

Research was an analysis of anonymised records where individuals accused of, investigated for, charged with or convicted of fraud aggregated from LSEG World-Check.

Find the full report.

About LSEG

LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.

With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes. 

LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 23,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.