In this ever-evolving fraud landscape, organizations of all sizes and across a variety of industries are ramping up their efforts to prevent fraud and protect consumer privacy. While a comprehensive identity verification and fraud prevention platform will filter out fraudsters, minimize legitimate customer friction and help you meet compliance regulations, continuing to monitor fraud trends also benefits your business by allowing you to stay a step ahead. Surveying senior executives with widespread fraud prevention experience reveals top trends to watch for when working in customer-not-present environments.
Suspected Fraud Attempts Have Increased
Fraudsters continue to find new ways to acquire customer identity and account information and use it to fraudulently gain access to products and services. According to the 2014 Fraud Report recently released by IDology, fraudsters are most likely to target website applications which are reported to bear the brunt of attempted fraud. Cases of suspected fraud are also increasing year over year. 87 percent of executives responded that their organization experienced suspected fraud attempts in the previous year, up from 66 percent the year before. In addition, 40 percent of respondents said the number of suspected fraud attempts increased.
Credit, Debit, and Prepaid Card Fraud Concerns
The most prevalent type of fraud in 2014 was seen in the use of credit, debit, and prepaid cards. Fraudsters target large organizations and use the information exposed during massive data breaches to steal precious identity and account details. They then use that information to purchase prepaid cards, load them with money, and launder funds through them. Since this is an attractive way for criminals to commit fraud, it is essential that organizations put necessary security systems in place that help them spot potential cases of fraud so they can be eliminated. By looking at your existing fraud prevention program, you will be able to see areas to enhance and improve your identity verification processes.
Be Prepared for Any Type of Fraud
While the majority of organizations believe that credit, debit and prepaid card fraud is the most prevalent, they also feel that they are most prepared to prevent this type of suspected fraud. Fifty-five percent of respondents in the IDology fraud report stated that they believe they are most prepared to detect and prevent credit, debit, and prepaid card fraud, moving forward. However, it is important that companies also work to increase their confidence that they can combat other types of fraud, as well. In addition to credit cards, top fraud activity includes:
- Money Laundering
- Account Takeover
- Wire Fraud
- Check Fraud
- Information/Data Theft, Loss or Attack
Studying trends in fraud helps businesses get a sense of how their industry is using identity verification and improving security for customers. It also allows organizations to see ways that they can adjust their existing fraud prevention procedures going into the next year.
IDology, Inc. provides innovative technology solutions that verify an individual’s age and identity for organizations operating in a customer-not-present environment. Founded in 2003, IDology assists organizations in preventing and eliminating fraud, while helping increase customer acquisition and revenue.
Source“IDology 2014 Fraud Report,” IDology, n.p., n.d., Web, 30 October 2014.