#USA #San Jose #Fraud Prevention #Gig Economy #Incognia

Incognia 2025 State of Fraud in the Gig Economy

In a recent report by Incognia, titled the "2025 State of Fraud in the Gig Economy," startling statistics reveal the current trends in fraud, particularly concerning the manipulation of identities through app tampering and multi-accounting. With a staggering 73% of fraud prevention leaders highlighting the halting of multi-account setups as their prime concern, the gig economy is increasingly besieged by evolving fraudulent tactics that threaten not only financial health but also consumer trust.

André Ferraz, the co-founder and CEO of Incognia, emphasizes that the issues of multi-accounting and ban evasion are not mere ancillary problems but central to the operational challenges faced by businesses today. These criminals employ sophisticated techniques like stacking promotions or evading refunds to continue their malicious activities, necessitating urgent attention from organizations operating within the gig economy.

Key Findings from the Report

The report underscores a notable shift in fraudulent techniques used against platforms such as food delivery services and ride-hailing applications. Approximately 75% of fraud professionals surveyed expressed keen interest in addressing application tampering, a form of mobile fraud that showcases its ability to deceive even the most robust detection systems. Techniques such as app cloning, code injection, and device farming further enable fraudsters to engage in illicit activities while masquerading as legitimate users.

In response to these escalating threats, many companies are beginning to adopt advanced techniques like device fingerprinting. Despite this move, the report notes that only about half of the companies utilize advanced features such as tamper detection and location intelligence. This suggests that many platforms are still unaware of the vulnerabilities present in their current systems and the outdated technology stymying their fraud prevention efforts. For instance, even a highly sophisticated device ID or verification tool can fall short if it lacks a foundational tamper detection mechanism.

The Importance of Robust Fraud Prevention

Incognia aims to address these concerns head-on, closing the gaps in existing fraud prevention strategies with its product, Incognia ID. This advanced solution combines device intelligence with location behavior to offer precise fraud identification and prevention, vastly improving upon traditional fingerprinting methods that often fail under modern threats. As companies navigate their budgets, a significant portion—nearly 20%—indicated possible reductions in funding for fraud prevention initiatives, signaling the need for better advocacy showcasing the demonstrable value these systems bring to operational efficiency and profitability.

Ferraz warns that a mere reliance on identifying devices won’t suffice: “Too many platforms assume that device identification alone can shield them from fraud. If that tool is inadequate or compromised, the threat remains.” The report advocates a shift in mindset, recognizing that preventing fraud is now crucial not just for protecting assets but also for preserving brand integrity and consumer trust.

The Broad Impact on the Industry

Incognia’s solutions play a critical role, as they currently serve over half of the world's leading food delivery and ride-hailing companies—including Grubhub and Delivery Hero—delivering unmatched identification accuracy of 99.999999%. The report also points out that businesses leveraging Incognia's solutions experienced an average return on investment of six times, underscoring both the efficacy and necessity of robust fraud prevention measures.

As 2025 progresses, the need for modernized approaches to fraud detection and prevention has never been more urgent. Companies in the gig economy must confront these challenges head-on to preserve their platforms’ integrity and secure user trust. For more insights and the complete findings of Incognia's report, visit their website to access the full document.

Conclusion

The Incognia 2025 State of Fraud in the Gig Economy serves as a wakeup call for businesses grappling with fraudulent activities in the digital landscape. Adopting stronger, proactive measures to combat these threats will be essential for maintaining long-term sustainability in an industry defined by rapid growth and evolving risks.