The growth of identity fraud shows few signs of slowing and technology has enabled easier access to consumer data that savvy fraudsters use to build synthetic IDs. These fake IDs are then used to acquire phone, cable, electricity and related services.
Particularly in the communications and utilities industries, access to stolen identities is higher than ever before. Widespread use of connected devices has led to remote fulfillment through online and mobile channels. These rapidly expanding channels may be open to exploitation by fraudsters. An estimated 244 million Americans owned at least one smartphone in 2016, representing 75% of the total U.S. population and this number is expected to grow to 282 million by 2020.1 As a result, to meet consumer expectations, businesses will need to continue making it convenient for consumers to establish service using mobile devices.
Another trend that is driving the surge in fraud is the growth of organized fraud activity. Criminals are illegally obtaining identities and reselling them in a secondary market. Criminal purchasers of these identities are then using them to fraudulently acquire products and services.
Fortunately, technology works for both sides and it is also helping organizations to fight back against ID fraud and win. Advanced solutions can help detect and monitor behavioral patterns early in the process which leads to more effective fraud mitigation.
If you’re curious about how your current solution stacks up against tech-savvy fraudsters, take this quick assessment. Click here: Go to Assessment. Answering “Yes” or “No” to these five questions can help determine if your fraud-detection method has the key capabilities to reduce losses and improve operational efficiency.
1S&P Global Market Intelligence, SNL Wireless Investor, Dec. 12, 2016