Why Investors Are Reaching For The Astrology of Finance

Why did the markets move? Most investors, analysts and even financial journalists will look, first and foremost, for news. Perhaps the jobs data were published, a firm announced it was being acquired or a central banker gave a sombre speech. Yet a small, dedicated cult of “chartists” or “technical analysts” believes that the movement of stocks, bonds and currencies can be divined by the making and interpreting of charts.

Their methods are many, varied and wackily named. A “death cross” is when a short-term moving average of an asset’s price falls below a long-term moving average. “Fibonacci retracement levels” rely on the idea that an asset climbing in price will fall back before rising again. Such backsliding is supposed to stop at levels based on Fibonacci numbers, like a 61.8% drop. The “ichimoku cloud”, loved by Japanese traders, sees the construction of a cloud by—bear with this—shading the area between two averages of high and low prices over the past week, month or two months.

A price above the cloud is auspicious; one below it is ominous. A true chartist needs only such information and “does not even care to know what business or industry a company is in, as long as he or she can study its chart”, as Burton Malkiel, an economist at Princeton and author of “A Random Walk Down Wall Street”, has noted.

These methods, though patently mad, have attracted attention lately because of how the s&p 500, the leading index of American stocks, has wiggled around. After slumping to a low of 3,637 on June 17th the index began to climb. On August 16th it peaked at an intraday high of around 4,325, a whisker away from its 200-day moving average of 4,326—a supposedly critical technical level.

An asset that has fallen in price but is rising is supposed to meet “resistance” at such levels. To chartists it is concerning when an asset fails to “break through” a resistance barrier—it is an indication of a bear-market rally, rather than a true bull market. And so, this time, it appears to have been: stocks have slumped by around 8% since August 16th.

Plenty of mainstream investors use some version of trend-following. Factor investing, invented by Eugene Fama, the Nobel prize-winning economist, and Kenneth French, is used by successful quantitative funds, like aqr Capital Management. It breaks down returns into component factors like “size” (small companies earn better returns than bigger ones) or “quality” (low-debt, stable businesses earn better returns than riskier ones).

Another such factor is momentum: stocks that are rising tend to keep rising. Still, their approach is a little more sophisticated than looking at a price chart. aqr’s algorithms tend to combine factors like momentum with others. They might buy, say, a small or high-quality firm whose share price has recently risen.

It is nevertheless possible to understand the chartists’ obsession with levels and trends. There is no real difference between a euro being worth $1.0001 or $0.9999, but these “big figures” in foreign-exchange markets assume importance. This is in part symbolic and in part practical: clients tend to place orders near round numbers and derivatives tend to be sold with round “strike prices”. That means it will take a lot more activity for the euro to fall from $1.0001 to $0.9999 than for it to fall from $1.0487 to $1.0485.

When placing orders, investors try to figure out where others are placing theirs. That can help them place a stop-loss order, to close a trade that moves against them, at a sensible level. If enough investors look at technical levels to inform their behaviour, then they begin to matter. Perhaps the real value of technical analysis is what its use tells you about market conditions.

No one bothers with the chartists’ pretty drawings when the economy is good, profits are high and stocks are moving smoothly higher—nor, indeed, in the depths of a frantic bear market, when prices will plunge through any and all levels technical analysts are wont to draw. Much as people who are feeling restless about the direction of their lives are more prone to become interested in astrology, investors who are uneasy about the direction of the markets will reach for the easy reassurance of an eye-catching diagram.

That some are laying the blame for the end of the summer rally on a technical tripwire suggests they have little idea what is really going on. Perhaps Buttonwood should derive a technical indicator of her own: the more regularly chartist analysis lands in her inbox, the clearer it is that no one has any clue as to why the markets are moving.

Correction (September 2nd 2022): An earlier version of this article said Eugene Fama and Kenneth French won the Nobel prize for their work on factor investing. They did not. Mr Fama won a Nobel prize for his work on the efficient-markets hypothesis. Mr French is yet to win a Nobel. Sorry.

Source: Why investors are reaching for the astrology of finance | The Economist

Critics:

Is it really that simple? I’ll fully admit that most of my understanding of the stock market is based on intuition and reading books with flashy titles. In other words, I’m far above the moving charalatan average in most aspects of my life, and you also sound like you might actually know what you’re talking about based on how definitive your answer is. If you also, for example, back-test a moving average strategy it usually ends up terrible I’ve noticed–either making almost no money or losing money.

Yet, I really like watching the stock market. It’s my favorite hobby in fact. It certainly feels like a death cross is going to be a bad time when it happens, but maybe the truth is more complicated then the cryptic silly lines I gain so much joy from.

You might already know this, but the stock market death-crossed around January and then it went down for a long time after that. But it also doesn’t always go down so dramatically every time there is a death cross. I’m not keeping accurate tallies on the whole thing, but it seems like it’s often bad when those two lines cross and often good when they cross in the opposite direction–the so-called “golden cross”.

I did actually put a little money on a stock because it golden-crossed recently and it went way up today, which was pretty exciting news. And I’m also avoiding a lot of stocks because they are about to death-crossed or just have recently on the weekly charts, but you know, I can also understand how the language I’m using might be mistaken for a seance organized by a bunch of teenagers dressed like vampires.

Mostly I listen to smart people like Warran Buffet and buy value stocks with good p/e, price-to-book, lots of equity, less debt, good earnings etc. It would be silly not to listen to the richest man in the world about what kind stocks to buy. Yet, it still feels like there’s something else there, even if my little hobby is about as realistic as playing a round of magic the gathering. It’s, you know, my little hour of make believe, that I put some money into in order to escape my otherwise mundane and factual existence.

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Crypto Investing In 2022 What Can You Look Forward To

2021 was a year of epic growth for cryptoassets. We saw the market take a big leap towards maturity as trends such as non-fungible tokens (NFTs) and the metaverse gained momentum, and regulators contended with the asset class’s growing role in the global economy.

More rapid change can be expected in the year ahead, with the crypto market hitting maturity amidst a changing macro environment and red hot inflation readings. In five concise trends, here is what you should be watching as we move into 2022.

1. NFTs move beyond JPEGs

Non-fungible tokens (NFTs) hit the mainstream in 2021. Brand names from Adidas to Budweiser and Pepsi to Warner Bros issued their own collections,  sports fans rushed to buy tokenized cards for their teams on platforms such as Chiliz, and luxury fashion houses including Givenchy dropped tokens to heighten exclusivity.

All of this demonstrated the revolutionary potential of the “NFT” — which was proclaimed Collin’s Dictionary’s word of the year.As we move into 2022, NFTs are set to move beyond just collectible JPEGs. The NFL is now working with Polygon to use NFTs for ticketing, TikTok has released trending videos as NFTs, and a diverse range of companies are starting to use the unique tokens to power radical change in how products are funded, licensed and promoted.

2. Blockchain gaming and metaverse boom

2021 saw the rise of a younger, faster generation of blockchains such as Solana, which offer the high performance needed for sophisticated blockchain-based gaming.Meanwhile, the first crypto games hit the big time. Axie Infinity attracted almost 2 million daily users with play-to-earn mechanisms, and investment poured into metaverse projects from all angles:

Facebook rebranded to Meta and tech giants Microsoft and Amazon dipped their toes, while venture capitalists committed billions to making the metaverse reality.Moving into 2022, this sector of the market is primed to hit the mainstream. All we are waiting for is the catalyst of a high-quality game or social platform that can bring in a broad audience beyond just crypto enthusiasts.

3. Layer 2s steal the limelight

The popularity of decentralized finance (DeFi) and NFTs has created bottlenecks on Ethereum, with congestion pushing network fees to all-time highs.Against this backdrop, Layer 2 scaling solutions such as Polygon (MATIC) have experienced epic growth by offering faster speeds and lower fees with no compromise to decentralization or security.

This trend is set to accelerate in 2022, boosted by new cryptographic innovations — such as Optimistic Rollups and Zero-Knowledge Rollups — which are finally ready for action after years of development.

4. Crypto payments hit the mainstream

2021 showed that payment giants see crypto not as a threat, but as an opportunity: Visa launched a crypto advisory service, Mastercard introduced crypto support, and WhatsApp began testing crypto payments via the Novi wallet.Governments have seen the potential of crypto payments too. El Salvador claimed to be saving $400 million a year in  Western Union fees by using Bitcoin remittances, and a parallel government in Myanmar adopted Tether as an official currency.

These events could be the first signs of a global transformation in payments and remittances; one that is likely to gain momentum in 2022 as more organizations realize that money can be exchanged instantly and inexpensively — as easily as sending an email.

5. Even more regulatory scrutiny

With former blockchain professor Gary Gensler leading the charge at the U.S. Securities and Exchange Commission (SEC), authorities around the world are racing to roll out regulatory frameworks.In the US, regulators are discussing a “crypto sprint” to quickly bring the industry into line, while across the Atlantic, the European Union’s (EU) proposed regulatory framework — Markets in Crypto Assets (MiCA) — is close to becoming law.

This activity will likely mean more scrutiny than ever before for the digital asset ecosystem, but if the approval of multiple Bitcoin ETFs around the world and the positivity of the recent US congressional crypto hearing are any indication, then 2022 could be the year we see regulators cautiously embrace cryptoassets.

Source: Crypto investing in 2022 – what can you look forward to?

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Critics:

Pete Howson, a senior lecturer in international development at Northumbria University in Britain, said 2022 is likely to see “stronger public opposition” to bitcoin on environmental grounds, which could force regulators to act more decisively.

A YouGov poll in October found nearly half of Britons supported banning cryptocurrencies to fight climate change.Scandinavian countries have voiced support for a potential ban on bitcoin mining across Europe, and, if that happens, authorities elsewhere might be driven to take a similar stance, said Howson.

“Massive power outages caused 700 deaths in Texas this time last year … and since then, we’ve seen the U.S. overtake China as the bitcoin global superpower, with much of that extra burden added to the Texas grid,” he said. “If again we see ordinary folks freeze to death in places like Texas, the bitcoin bros will be out on their ears.”

At the same time, the industry could be pressured into addressing its “sustainability challenges”, according to Alexander Hoptner, who heads BitMEX, one of the world’s largest virtual currency derivatives exchanges.

In November, the company said it had gone carbon neutral, offsetting emissions from its bitcoin transactions and servers by buying $100,000 in CO2 credits, a model some green groups criticise, saying it simply gives major polluters a way to avoid cutting their own carbon output.

“We’ve already had very encouraging chats with other exchanges, protocols, and organisations who are keen to work together to help lower the environmental impact of crypto,” said Hoptner. “I think 2022 will be the year that the crypto industry comes together to answer those who’ve challenged us to seize this responsibility.”

“Central banks around the world are bowing to the reality that digital payments are becoming the norm,” he said.”Maintaining the relevance of central bank money in retail transactions necessitates the creation of digital versions of their currencies.”From Russia to Chile, many countries have started to look into CBDCs, with tests and rollouts scheduled for 2022.Some, like Japan and Sweden, have already started trials….

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Stablecoin Friendly Policies Can Help Make 2022 A Breakout Year For The Sector

Stablecoins increasingly are the form of cryptoassets most commonly used for transactional purposes, and as 2022 gets underway the importance of these cryptoassets will only increase.

From a business and marketplace point of view the upsides and opportunities linked to stablecoins are clear, and have been reinforced over the last several years. As should be self-evident by the moniker, the primary benefit of stablecoins is the reduced price volatility that often characterizes other cryptoassets.

A simple statement of fact, but one whose importance cannot be overstated. In order to achieve mainstream adoption and utilization as a medium of exchange rather than simply a speculative investment, users and consumers must have confidence in the value of whatever is being utilized for this purpose.

The appetite and interest in stablecoins has been demonstrated by the billions in transactions taking place using these assets, the regulatory focus highlighted by the President’s Working Group report on the matter, and the fact that several major payment processers now allow customers to send and receive payments denominated in stablecoins.

In other words, the functionality of these tools and market interest has been proven and established; the technology works and fills a need. Policy, or lack thereof, still remains a looming threat to broader adoption and utilization, and is an area that will need to be addressed as the sector continues to mature.

Obviously the conversations linked to cryptoasset regulation is beyond the scope of any singular article. Rather, the factors listed below are explicitly connected to stablecoins, and how commonsense policies can not only help accelerate adoption of stablecoins, and also create a regulatory environment that allows for further maturation and development of the space.

Let’s take a look at a few policy items that could – and hopefully will – accelerate the already rapid adoption of stablecoins.

Differentiate stablecoins. This point cannot be overstated; in order to further develop and expand the opportunities for stablecoin utilization, there needs to be a differentiation between stablecoins and other cryptoassets. While it is true that the cryptoasset space at large has become much busier during the last year or so – non-fungible tokens (NFTs), decentralized finance (DeFi), and the rise of central bank digital currencies (CBDCs) – the importance of this singular difference is paramount.

Even now as regulators seek to implement policies to monetize and capture the benefits connected to cryptoassets, stablecoins are routinely lumped in with more volatility counterparts. This not only misses the bigger point regarding the value case of stablecoins, but muddies the water around how to best integrate cryptoassets into financial markets.

Monetary competition is good. Recent comments and conversations have focused on, notably around the different CityCoin projects that have launched during the last several months, is that developing this array of options might not be the best use of resources. The thinking goes, why not instead invest these resources in developing other technologies or addressing other economic or societal issues versus introducing yet another cryptoasset? This line of thinking, as appealing as it might appear upon first review, misses the broader point.

Every economic sector, be it connected to technology or not, is improved by the introduction of competitive options for consumers, investors, and users alike. Many of the same proponents of more standardized and centralized cryptoasset options, namely CBDCs, should be encouraging new and innovative stablecoin options. Lessons learned in the private sector can – and have – been integrated into the development of newer and more mainstream cryptoasset options.

Competition is a good thing, and the best components of different tools will be integrated into whatever options do eventually achieve mainstream status.

Simpler reporting requirements. The tax, compliance, and reporting obligations that accompany cryptoassets are a burden that have been discussed in multiple outlets, and the issues that exist are nothing new. Building on the first point mentioned above, this is also an opportunity for policymakers to demonstrate that more sophisticated public commentary is also working its way into more nuanced regulation and rule-making. One of the best ways to communicate that policy is evolving alongside the sector would be to ease the compliance burden on the issuers and users of stablecoins.

Clearly there is always a role for well-informed and thought out regulation and rules, but the current reporting obligations seem more appropriate for cryptoassets with higher volatility than stablecoins. This subset of cryptoassets were developed, and have been explicitly designed, to function as a medium of exchange; how can this happen if potential tax obligations need to be recorded and reported for every transaction?

Understandably, government authorities wish to collect taxes when appropriate; that is not the problem in this context. The issue is when the rules that have been implemented seem to specifically and artificially undermine the primary use case of the instrument (stablecoins) in question.

Stablecoins have quickly rocketed from an interesting cryptoasset that might have struck some market participants as a boring alternative to bitcoin to an integral link in the adoption journey for many individuals and organizations. Despite this rapid growth and acceptance, however, work remains in order to fully realize the potential of these cryptoassets for transactional purposes.

As the calendar rolls forward into 2022, this is the perfect time to revisit, revise, and improve rules and policies around stablecoins. Serving a bridge and on-ramp for market actors at varying levels of expertise, stablecoins have a critical role to play; effective policy can go a long way to making this a reality.

Follow me on Twitter or LinkedIn. Check out some of my other work here.

Source: Stablecoin Friendly Policies Can Help Make 2022 A Breakout Year For The Sector

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Cryptocurrencies Are Coming Back From the Brink. Here’s Why

After months languishing in the doldrums, cryptocurrencies are surging. On Monday, Bitcoin breached the $50,000 mark for the first time since May. Other coins — including Ethereum, Cardano’s ADA and Dogecoin — also edged higher.

And it was only a few weeks ago that some strategists were eyeing a possible drop to $20,000 for Bitcoin, months after it had hit an all-time high near $65,000 in April.

Instead, sentiment is rising across the board. Crypto’s latest swings are a sign that Bitcoin miners are back in business after a recent Chinese crackdown. At the same time, there is continued evidence of more mainstream acceptance. All of this is happening as the delta variant’s surge has muddied the timeline for a normalization of interest rate policy.

“There’s been an accelerating background of accumulation of crypto assets in the past couple months,” Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX, wrote in an email Monday. “Institutional flows in Bitcoin and Ether as well as a lot of retail activity in NFTs and gaming” are likely contributing, he added.

Here is a look at what is driving the increase — and what could come next:

A Shift in Sentiment

The cryptocurrency world is populated by a cast of characters whose voices can really influence prices. Lately, bullish noises have been boosting sentiment.

Take Elon Musk. Earlier this year, the billionaire caused heads to spin — and helped prices to boost and then plummet — when he said in March that Tesla Inc. would accept payment for its electric vehicles in Bitcoin but backtracked in May. He made his reversal on environmental grounds, expressing concern about the use of fossil fuels for cryptocurrency mining. Following those comments, Bitcoin lost about a quarter of its value in a week.

But here’s the latest twist: Over the past few weeks, Musk has been striking a more supportive tone. In late July he said he personally owns Bitcoin, Ethereum and Dogecoin and would like to see crypto succeed.

Superstar investment manager Cathie Wood is another influential voice in this space. A noted crypto bull, she told Bloomberg TV in May that she could see Bitcoin reaching a price of $500,000. More recently, she said she thinks corporations should consider adding Bitcoin to their balance sheets.

Hash Rate Signals

About a month ago, all the talk in the cryptocurrency world was of a Chinese crackdown. A ban on Bitcoin mining meant the abrupt shuttering of millions of computers that had been processing the transactions necessary to keep the crypto currency humming. Before the ban, around 65% of the world’s Bitcoin mining took place in China.

As computers went offline, the hash rate — a measure of the computing power used in mining and processing — halved in just two and half weeks.

As well as the practical implications, the aggressive moves by China laid bare the fact that the decentralized currency is still at the mercy of governments, which hit sentiment. Bobby Lee, one of the country’s first Bitcoin moguls, even said that China’s crackdown on cryptocurrencies will probably intensify and may even lead to an outright ban on holding the tokens. And in the U.S., a recent congressional debate over crypto rules added to the uncertainty.

However, the hash rate has rebounded and is up from its July nadir, according to data from Blockchain.com.

That recovery has helped restore confidence in the market that cryptocurrencies can flourish even in the face of opposition from legislators around the world.

Keep Your Eye on Jackson Hole

Prices of cryptocurrencies, like gold, tend to suffer when there is the prospect of interest rate hikes. The emergence of Covid’s delta variant may scramble plans to remove crisis-level monetary policy.

If Federal Reserve Chairman Jerome Powell were to strike a dovish note in his speech at the Jackson Hole conference this Friday, that could boost the currency, Oanda analyst Edward Moya said in a note.

The Kansas City Federal Reserve’s annual event, being held virtually again, is traditionally scrutinized for hints on upcoming changes in stance. Some Fed leaders have used it as a platform to explain new initiatives, as Powell did last year in unveiling a new monetary policy framework.

Even More Mainstream — and Main Street — Interest

Huge financial and consumer firms over the past year have increasingly been embracing crypto, giving the asset more legitimacy and driving up the price. Banks, brokerages and securities exchanges have been gearing up to meet demand. A watershed moment came in April with the U.S. stock market debut of Coinbase Global Inc., a crypto trading venue that’s shooting to establish a digital-money ecosystem.

This summer, there has been growing speculation that Amazon.com Inc. may become involved in the cryptocurrency sector. An Amazon job posting published online in July said the firm was seeking a “Digital Currency and Blockchain Product Lead.” After people found out about the post, Bitcoin surged to about $40,000. Amazon shares gained about 1% in New York. The company went on to say that the “speculation” about its “specific plan for cryptocurrencies is not true,” but the fact that the world’s largest retailer is exploring crypto has big implications for the shadowy and often hard-to-access market.

Walmart Inc. revealed it, too, was looking for some crypto help, with a job posting on Aug. 15 with responsibilities that would include “developing the digital currency strategy and product roadmap” and identifying “crypto-related investment and partnerships.” (As of Monday morning, visitors to the website were given a 404 error message.)

So… Where to From Here?

In these final days of summer, it’s now back in vogue to make $100,000 predictions.

As with any investment — or anything, really — it’s impossible to predict the future. But analysts do have a few estimations on how breaching $50,000 has changed Bitcoin’s prospects, at least in the short term.

Bitcoin is “getting nearer the higher end of what I expect as a new trading range in the low-$40,000s to low-$50,000s,” said Rick Bensignor, chief executive officer at Bensignor Investment Strategies.

Daniela Hathorn, an analyst at DailyFx.com, thinks that it may be a while before we see any further bullish momentum because $50,000 is a key psychological level for the currency.

“A pullback towards the $48,000 area would be the first sign of trouble,” she wrote in a note on Monday. “But the positive trend isn’t in any trouble as long as Bitcoin stays above its 200-day moving average at $45,750. Looking ahead, the key challenge for buyers will be to cement further gains towards $55,000 without losing momentum along the way.”

By: Emily Cadman / Charlie Wells / Joanna Ossinger

Source: https://www.bloombergquint.com/wealth/bitcoin-price-surge-reasons-why-ethereum-cryptocurrencies-are-rising
Copyright © BloombergQuint

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As COVID-19 Lockdowns Lift, Fraudsters Shift Focus

What’s the impact on digital fraud as countries ease COVID-19 lockdown restrictions? We recently analyzed billions of transactions in our flagship identity proofing, risk-based authentication and fraud analytics solution suite — TransUnion TruValidate™ — and found the rate of suspected digital fraud attempts across industries rose 16.5% globally when comparing Q2 2020 and Q2 2021.1 In the US, the percentage of digital fraud attempts increased at a similar rate of 17.1% during the same time period.

As fraud attempts on businesses and consumers continue to rise, fraudsters are pivoting to target industries with growing markets. “It’s quite common for fraudsters to shift focus every few months from one industry to another,” said Shai Cohen, Senior Vice President of Global Fraud Solutions at TransUnion.

For example, when looking at financial services, online fraud attempt rates had risen 149% when comparing the last four months of 2020 to the first four months of 2021. Yet, when comparing Q2 2021 to Q2 2020, the rate of suspected online financial services fraud attempts has risen at a much lower rate of 38.3% in the US (18.8% globally).

Where are fraudsters turning their efforts globally? We found gaming, and travel and leisure rose 393.0% and 155.9%, respectively when comparing the percent of suspected digital fraud in Q2 this year and last. In the US, during the same time periods, these rates rose 261.9% for gaming and 136.6% for travel and leisure.

Global Industry Year-over-Year Suspected Digital Fraud Attempt Rate Increases and Declines in Q2 2021

Industry Suspected fraud percentage change Top type of fraud
Largest percentage increases
Gaming 393.0% Gold farming
Travel & Leisure 155.9% Credit card fraud
Gambling 36.2% Policy/License agreement violations
Largest percentage declines
Logistics -32.74% Shipping fraud
Telecommunications -16.35% True identity theft
Insurance -8.33% Suspected ghost broker

Fraudsters capitalize on new opportunities as travel begins to reopen

While volumes remain lower than pre-pandemic levels, travel has seen a significant increase. The daily US Transportation Security Administration (TSA) screenings for many days in April 2020 were below 100,000. However, the busiest day in April 2021 had 1,572,383 screenings, reflecting the growing number of travelers.

Cybercriminals are taking note and acting accordingly. “Fraudsters tend to seek out industries that may be seeing an immense growth in transactions. This quarter, as countries began to open more from their COVID-19 lockdowns, and travel and other leisure activities became more mainstream, fraudsters clearly made this industry a top target,” noted Cohen.

In addition to leveraging credit card fraud (the top type of digital fraud reported to TransUnion by its travel and leisure customers), fraudsters are also quickly adapting to target desperate travelers. Recently, the US State Department temporarily shut down their online booking system for all urgent passport appointments in response to a group of scammers using bots to book all available appointments and sell them for as high as $3,000 to applicants with urgent travel needs.

More than one-third of consumers say they’ve been targeted by COVID-19-related digital fraud

While travel and leisure, and gaming saw the largest increases in suspected digital fraud, 36% of consumers participating in TransUnion’s Consumer Pulse study said they’d been targeted  by a digital fraud scheme related to COVID-19 — across all industries — during Q2 2021.

Phishing was the leading type of COVID-19-related digital fraud impacting consumers in Q2 2021. Stolen credit card or fraudulent charges was the second most cited type of COVID-19-related online fraud, affecting 24% of global consumers.

Suspected Digital Fraud Attempt Rate Increasing Worldwide

For more digital fraud findings, see our entire infographic here.

“One in three people globally have been targeted by or fallen victim to digital fraud during the pandemic, placing even more pressure on businesses to ensure their customers are confident in transacting with them,” said Melissa Gaddis, Senior Director of Customer Success, Global Fraud Solutions at TransUnion. “As fraudsters continue to target consumers, it’s incumbent on businesses to do all that they can to ensure their customers have an appropriate level of security to trust their transaction is safe all while having a friction-right experience to avoid shopping cart abandonment.”

How our TruValidate suite helps businesses detect and prevent fraud

TransUnion Global Fraud Solutions unite consumer and device identities to detect threats across markets while ensuring friction-right user experiences. The solutions, all part of the TransUnion TruValidate™ suite, fuse traditional data science with machine learning to provide businesses unique insights about consumer transactions, safeguarding tens of millions of transactions each day.

Source: As COVID-19 Lockdowns Lift, Fraudsters Shift Focus | TransUnion

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