Tag: Identity & Fraud

As economic uncertainty continues to loom, the threat of fraud continues to grow and is becoming more sophisticated. It’s only going to get worse. Due to intensifying inflationary pressures, prices and costs have been increasing which has led to financial hardship impacting individuals and businesses. This provides an opportunity and motive for bad actors to figure out new ways to commit fraud. Federal Trade Commission data shows that consumers reported losing nearly $8.8 billion to fraud in 2022, an increase of more than 30 percent over the previous year. PwC’s Global Economic Crime and Fraud Survey 2022 shows 51% of surveyed organisations say they experienced fraud in the past two years, the highest level in their 20 years of research. Additional investments in fraud prevention technology are a priority for businesses to combat these evolving threats, according to Experian's Sept. 2022 Global Insights report, which states that 94% of businesses report it as the top priority. Since fraud is becoming more sophisticated, part of the challenge that businesses face is to constantly evaluate multiple solutions so that they can continuously improve their fraud detection and prevention capabilities. Investments that can deliver the highest ROI are the solutions that are integrated and orchestrated in a comprehensive fraud reduction intelligence platform. This gives businesses the flexibility to manage evolving strategies and mitigate threats with real-time decisioning. Experian’s CrossCore is an integrated digital identity and fraud risk platform. It offers global solutions to help protect businesses from fraud and maintain compliance with regulatory requirements, using real-time risk analytics and decision-making strategies. The platform aggregates various fraud and identity verification sources to consolidate risk and trust decisions for Experian clients throughout the consumer journey.   Experian’s CrossCore has been recognized as an Overall Leader, Innovation Leader, Product Leader, and Market Leader in KuppingerCole’s Fraud Reduction Intelligence Platform Leadership Compass 2023. This recognition highlights Experian's comprehensive approach to combating fraud. It validates that CrossCore offers best-in-class capabilities by augmenting Experian’s industry-leading identity and fraud offerings with a highly curated ecosystem of partners which enables further optionality for our clients based on their specific needs.  Read the report CrossCore's Capabilities

Our latest Global Identity and Fraud Report reveals that fraud has been of high concern for consumers over the past year. In fact, more than half of consumers report that they are worried about online transactions, and 40% say that their concern has increased over this period. Data breaches, well-publicised scams, and direct first-hand experience with fraud have all contributed to these higher levels of concern. Our study shows that 77% of consumers had increased concern after experiencing online fraud, with more than half of consumers surveyed having had a close encounter with fraud: 58% of consumers say they have been a victim of online fraud, know someone who has been a victim, or both 57% of consumers say they have been a victim of identity theft, know someone who has been a victim, or both 53% of consumers say they have been a victim of account takeover, know someone who has been a victim, or both As a consequence, it makes sense that consumers rank security and privacy above convenience and personalisation when evaluating their online experience and expect businesses to take the necessary security steps to protect them online. We look at the main factors that play a role in the high levels of fraud concern among consumers and what businesses should do to address challenges in their fraud strategies. Three contributing factors to increased fraud concern among consumers Identity fraud has increased  Our research also unveils that identity theft has overtaken credit card theft as consumers’ biggest security worry across all age groups. Furthermore, a recent report from the UK showed that recorded cases of identity fraud have grown by 22% over the past year. Fraud prevention and security professionals have been trying to educate consumers for a long time on this topic. Stealing identity data and using it in multiple fraud schemes can be significantly more harmful than criminals having access to someone's credit card numbers, where transactions can be traced quickly and revoked or charged back. While many factors contributed to an increase in concern about identity theft, the most impactful over the past two years were the numerous cases of unemployment and benefits fraud. Multiple countries reported cases where criminals applied for loans in the name of genuine consumers or through synthetic identities, created by combining real stolen information with fake data. The cost of these scams is yet to be discovered, and it could take years to see their full effect, with fraud losses well into the billions (if not trillions) of dollars worldwide. Criminals can access stolen data and fraud tutorials beyond the dark web To commit many types of fraud, criminals need Personal Identifiable Information (PII) that is stolen through techniques such as hacking attacks, credential harvesting, credential stuffing, phishing, or other types of social engineering. For years the knowledge of how to do that, along with the stolen data available after a successful attack, was available mainly on cybercriminal forums accessed through the dark web. However, over the past year, it has become easier than ever to obtain not only PII data but also valuable information on how to bypass some of the security and fraud features in place for a certain institution. Criminals no longer need to go to the dark web to do that - it's available on platforms like Telegram, just a few clicks away, where other fraudsters are selling tutorials (often called 'Sauce') on how to commit fraud, as well as PII data (called 'Fullz') to achieve it. As a result, the entry level for those that want to commit fraud has been set lower than ever before - both in terms of skillset and accessibility. Phishing and scams are at all-time high Another contributing factor to the increase in consumer concern is the number of scams resulting in authorised push payment fraud, which totalled £583.2 million in the UK alone during 2021. Criminals continue to seek out consumer vulnerabilities and use a variety of tactics to apply pressure on their victims and convince them to transfer money out of their bank accounts. This could take many forms - from various types of impersonation scams, romance scams, and investment (fraud) opportunities, to scams related to utility bills and easy loan offers among other types. This wouldn't be possible without numerous phishing/smishing/vishing attempts and the amount of data available through data breaches. One other factor that helps criminals is the direct access to potential victims given by social media and the sheer volume of personal information available in the public domain. These types of scams sometimes get high publicity (and rightly so) which can also contribute to the increased level of concern among the public while also applying additional pressure on financial institutions to improve their fraud screening and transaction monitoring capabilities to protect consumers. How businesses can improve fraud screening capabilities and increase consumer trust To restore consumer trust, businesses need to look for ways to improve their capabilities both at account opening and login to prevent criminals from gaining easy access to their services. There are multiple ways to do that, from introducing online identity document verification or phone-centric identity verification capabilities at the account opening stage, to adding behavioural biometrics, device intelligence, or fraud data sharing capabilities during different stages of the customer journey. By introducing some of these capabilities businesses also can improve the digital customer journey for genuine consumers and increase trust. Online identity document verification and phone-centric identity verification solutions both offer pre-fill capabilities. These tools can streamline registration processes and thus contribute greatly to a positive consumer outlook of the company that offers them. While behavioural biometrics, device intelligence, and fraud data sharing tools are invisible to both fraudsters and genuine consumers creating a more frictionless experience. Businesses should look carefully at the fraud they are experiencing along with fraud trends shared by similar businesses. This should help inform whether to introduce new capabilities as part of the existing strategy. It's common that companies might need a mix of capabilities to mitigate fraud issues, with additional support from machine learning models to blend them into one cohesive output while limiting the number of false positives and building consumer trust. Stay in the know with our latest research and insights:

We surveyed 6,000 consumers and 2,000 businesses from 20 countries worldwide as part of our ongoing efforts to learn more about how, why, and where consumers interact with businesses online.

Did you miss these December business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. How are companies responding to consumer behavior? Nasdaq Trade Talk's Jill Maladrino talks to Steve Wagner, Global Managing Director of Decision Analytics, about the increase in online activity over the course of the pandemic, how inflation can impact brand loyalty, and why businesses need to respond to consumer demand with better customer experience and fraud prevention. Q&A: Why the increased use of digital transactions is here to stay David Bernard, SVP of Strategy, Marketing and Digital, talks to Digital Journal about how businesses should be approaching the increase in digital transactions using advanced analytics and decisioning technologies to improve the digital customer experience and grow their businesses. How criminals are using synthetic identities for fraud Dark Reading's The Edge talks to David Britton, VP of Industry Solutions, about why businesses must improve their fraud detection and prevention protocols to detect synthetic identities and ensure that they are protecting their consumers' personal information. Latest retail trends: AI is on the up, consumer loyalty is heading down Digital Journal looks at Experian's latest research that uncovers how businesses are incorporating machine learning and artificial intelligence into everyday operations and investments in response to an upward trend in online activity and a downward trend in customer loyalty. Stay in the know with our latest research and insights:

As holiday shoppers flood online to finish up last-minute gift-buying, there's a high chance that they're paying attention to not just product prices or shipping times but also the security of their transactions. In 2020, with many stores still closed down due to the pandemic, digital sales over the holidays increased by 20%. Though we're still awaiting figures from this year, all signs point toward an increase in digital transactions that's here to stay. But as online transactions have ramped up, so have consumer concerns about the safety of their online activities. The recent Global Insights Report showed that 42% of consumers are more worried now about online safety than they were last year. The concern is understandable—as more people head online, we've seen a record number of breaches. However, now more than ever, businesses need to integrate security into their customer experience, taking a layered approach that provides added protection without additional hassle. Heading into the new year, those that can show they prioritize security as part of the customer experience—and not adjacent to it—will earn the trust and business of a rapidly expanding online customer base. More activity, more risk We've been tracking consumer and business activity online over the course of the pandemic. Our most recent research, drawn from surveys done in October, reveals a 25% increase in digital transactions worldwide since the beginning of the pandemic. It's a figure that's remained constant, even as covid-related restrictions wane and people venture back out to physical stores and banks. This massive digital shift happened in response to a crisis. Businesses such as financial services, restaurants, medical organizations, and retailers suddenly experienced a flood of online business and digital demand. Their option: Respond or be left behind. But as the dust settles, the enormity of the shift and how fast consumers normalized digital behavior is quite astounding. Someone who may have never considered online grocery delivery now uses it regularly. People who habitually visited their bank branch may now bank on their mobile devices. The examples are infinite. Consumers that made the online shift did so initially for physical safety reasons. They didn't want to be close to crowds or strangers because of the virus. Online felt safer. But now that digital transactions are part of many people's daily activities, consumers are awakening to the risks of online transactions. Many may have already experienced a breached account or received a notice that their data was compromised. Indeed, we saw a significant increase in attacks over the year across industries. Ransomware attacks alone are on track to reach 700 million by the end of 2021, a 1,300% increase from the year before. Best practices for better online security in 2022 More consumers are transacting digitally, and that's good news—businesses can expand their reach, grow their revenues, and introduce new digital products. But the question is: How can you leverage the growth while still keeping customers safe—and importantly, not impeding, their online experience? The answer rests part in mentality and part in action. Let's start with the first. Understandably, security guidance in the past often split the onus of safety between the business and customer. Who hasn't reminded customers that they need good password hygiene, device security, and personal data practices, or they may put themselves at risk. Indeed, customers paid attention; they ranked security as their number one priority. But the days of relying on customer actions are over. Businesses that gain customer trust in the future will be those that empower customers to improve their security while actively working to ensure that even if customers fail—their systems do not. You can achieve this by: 1. Beginning everything with a security mindset Businesses need to make security part of their growth strategy. That way, when they do experience planned — or unplanned — surges in activity, their security systems scale to meet them. Coordinating security across functional teams in the event of anticipated demand increases is another smart way to keep customers safe as your business grows. For instance, if marketing is planning a major campaign to spur online purchases, then IT and security need to know about it ahead of time. 2. Developing a multi-layered security strategy There is no magic bullet for preventing cyberattacks, account takeovers, or data breaches. But you can create hurdles for bad actors at every single turn. Combining device recognition, document and identify verification, and behavioral identification makes it that much harder for cybercriminals to impersonate your customers. Our research shows that customers are increasingly willing to provide more personal information to businesses if it means increasing their online security. They're eager to double-down if you are. 3. Utilizing vendors that keep you competitive The security space is evolving rapidly, and it's difficult for individual businesses to mind their own digital operations and keep pace with cybersecurity trends. Fortunately, high-quality vendors can do that for you, providing updated systems, education on new threats, and access to emerging technologies that keep your company and customers safe. The added benefit of these best practices is that they improve the customer experience along the way. Our research shows that customer loyalty to specific online brands is dipping—61% say they're interacting with the same companies online, which is a decrease of 6 percentage points from the previous year. Add in supply chains issues that are impacting inventory, and consumers are primed to find alternatives to their favorite online businesses. But the problems we’ve faced during the pandemic don’t have to define our digital future. Combine security with a quality experience in 2022, and you can attract and retain online customers that come for your product or service and stay because they feel safe. Stay in the know with our latest research and insights:

Historically, identity graphs were used to drive marketing for businesses, allowing marketers to understand and target their audience with relevant content. But in recent years, identity graphs have emerged as a useful tactic to help businesses detect and prevent fraud due to the magnitude of data they collate and analyse. As fraud continues to evolve, businesses need to get creative and resourceful when it comes to fighting online fraud to keep pace with the fraudsters. Identity graphs allow businesses to map multiple data points to create individual customer profiles while highlighting connections across all customer profiles in their current portfolio. Download our latest Global Identity and Fraud Report How do identity graphs work? Identity graphs are databases that create a consolidated unique customer profile. Information is collected from different platforms, both online and offline, and merged into a single view. This process of gathering and merging information is known as identity resolution. The primary goal of identity resolution is to create a real-time, holistic view of an individual. How identity graphs can be used across different types of fraud Account Takeover: Identity graphs make it simple to tell when the same individual is logging into multiple accounts or when all data associated with a particular user account suddenly changes. Identity graphs can screen customer accounts that are suspected of having been compromised by takeover attacks. Credit Card Fraud: Identity graphs collate data from both online and offline means. Having access to this data can be hugely beneficial in preventing counterfeit credit card transactions. Identity graphs will map common links between cardholders and data such as point of sale locations or historic transactional behaviour. Understanding these behaviours means identity graphs can uncover suspicious transactions, helping to expose compromised credit cards and prevent fraud. Referral Fraud: Many businesses offer reward incentives to their customers to help drive engagement. While good intended, businesses that offer referral rewards may expose vulnerabilities to referral fraud. In referral fraud attacks, fraudsters will take advantage of the offered rewards without ever meeting the conditional requirements. Identity graphs make it possible to uncover referral fraud, for example, highlighting multiple referrals from one household. Gaming Fraud: Fraudsters will make multiple online gambling accounts to take advantage of any sign-up offers the vendor may offer. Likewise, fraudsters will often use multiple accounts to bet against themselves, ensuring they always win. Identity graphs can help track and highlight these instances flagging relationships between the multiple accounts. Synthetic ID Theft: Recently fraudsters have been turning to synthetic IDs to commit fraud, as opposed to sourcing legitimate IDs as per traditional identity theft. Fraudsters will combine personal data from multiple victims to create a new, non-existent identity that they can then use during online transactions. These new personas, and the inconsistencies they contain, can be easier spotted when identity graphs are applied. Anti-Money Laundering (AML): When fraudsters illegally obtain funds, they will recruit individuals to pass these funds from one source to another, making their origin hard to trace. Identity graphs can help organisations track financial transactions, providing a clear image of the journey the funds have taken, all the way from origin to destination. Innovative ways identity graphs are helping to detect and prevent fraud Cross-device Identification: Identifying customers through PII and digital data, through both deterministic and probabilistic matching, allows organisations to better identify the same user across multiple devices. This allows them to be treated as a single entity, highlighting suspicious anomalies in behaviours. Real-time: Our digital world is notoriously fast paced, and not known for standing still. Identity graphs operate by collating data and updating the associated customer profiles in real-time. Ensuring we always make decisions on accurate and up-to-date customer information is crucial for both regulatory and risk reasons. Fraud Rings: Identity graphs collect and link a vast magnitude of data. Examining each data point in tabular form can be a laborious task for investigators and spotting suspicious connections can prove difficult. When connections are presented within a graph, they can easily present powerful insights that can uncover fraud rings that could otherwise be missed. Stay in the know with our latest research and insights:

Did you miss these November business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. Online retailers work to turn pandemic buyers into loyal customers Digital Commerce 360 cites that only 73% of U.S. consumers say they're loyal to the brands they shopped with before the pandemic, down from 79% last year, according to Experian's latest wave of Global Insights research. So what does this mean for businesses? Donna DePasquale on Using Tech to Modernize Financial Services In this podcast, Donna DePasquale, EVP Global Decisioning Software, talks to eWeek about how the use of data analytics has evolved in the financial sector, the challenges involved, where we are at now, and what the future might look like. Was that for real? Delving into the deepfake reality Digital Journal spoke to David Britton, VP of Industry Solutions, on deepfake learning benefits and risks, focusing on how bad actors can deceive or manipulate consumers and businesses - and what they can both do to mitigate the dangers. Experian Finds 25 Percent Increase in Online Activity Since Covid-19 Business Information Industry Association looks at Experian's latest research and why the pandemic-accelerated increase in digital transactions is here to stay and how businesses must continue to transform their operations as they head into 2022. Stay in the know with our latest research and insights:

What increasing expectations of the digital customer experience mean for your business and technology investment Economic recovery and waning customer loyalty are creating new opportunities 59% of businesses globally say they’re mostly or completely recovered from the pandemic 61% of customers engaging with the same companies they did a year ago, down 6% in twelve months Data, analytics and decisioning technologies help provide customers with a secure and convenient digital experience Consumers are prioritising security, privacy and convenience when engaging online 75% of consumers feel the most secure using physical biometrics Scalable software solutions give companies of all sizes the ability to better manage risk and digitally transform the customer experience 50% of businesses are exploring new data sources 7 in 10 businesses say they’re frequently discussing the use of advanced analytics and AI, to better determine consumer credit risk and collections 76% of businesses are improving or rebuilding their analytics models “Dwindling customer loyalty along with heightened customer expectations and increased competition could mean potential revenue loss or gain. Businesses must find integrated credit and fraud solutions to improve digital engagement and customer acquisition.” Steve Wagner, Global Managing Director, Decision Analytics, Experian We surveyed 12,000 consumers and 3,600 businesses across 10 countries as part of a longitudinal study that started in June 2020 Read the full report to find out where businesses are focusing their investments

Did you miss these October business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. Best practices to detect and mitigate deepfake attacks David Britton, VP of Industry Solutions, writes for Search Security on how deepfake technology enables fraudsters to distort reality and commit financial crimes. Learn about how the technology works and what best practices to deploy to mitigate deepfake attacks. View deepfake infographic Consumers prefer biometrics to passwords, think less of brands with bad authentication Biometric Update looks at recent research from the CMO Council which found that a far greater number of consumers would choose to use biometrics for authentication ahead of passwords. This supports findings from the Global Identity and Fraud report from earlier this year. This article features an overview of authentication education resources for businesses to better understand where the industry is headed. Managing the Impact of Disinformation Via Deepfakes The Business Information Industry Association looks at why rapidly evolving technology platforms pave the way for even more creative approaches to fraudulent activity. With a focus on deepfakes, this piece looks at what businesses should do to minimise the impact by identifying areas of infiltration and creating a layered strategy of defence. Stories from around the world TDavivienda responde tras robo a cuentas que afectó a Jessica de La Peña CyberArk, Cybersecurity Awareness Month Stay in the know with our latest insights:

Did you miss these September business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. Lending in a Two-Lane Economy Harry Singh, Senior VP, Global Decisioning, features on this CU Management podcast, discussing ways in which Credit Unions can best serve their customers with loans and other products within what Experian's latest research refers to as the two-lane economy. The deepfake-scape: How to fight fraud in the digital age This Biometric Update article by David Britton, VP of Industry Solutions, looks at why deepfakes are a big risk to businesses and consumers, and how fighting fire with fire in the form of artificial intelligence and machine learning can be the best form of defence for organizations. Focus on Data, Advanced Analytics and Decisioning Creates a Winning Strategy for Experian Global Banking and Finance announce that Experian has been ranked number 11 in the IDC FinTech Rankings Top 100 which highlights the top 100 global providers of financial technology, with the piece referring to Experian as a “rising star.” The Rise Of Voice Cloning And DeepFakes In The Disinformation Wars Forbes's Jennifer Kite-Powell uncovers that although deepfake fraud is dominant in social media, it is quickly moving into business sectors. Kite-Powell talks to David Britton, VP of Industry Solutions, about what businesses can do to counteract deepfake fraud tactics like voice-cloning. Shri Santhanam talks AI in lending On this Fintech One to One podcast from Lendit FinTech News, Shri Santhanam, Global Head of Advanced Analytics and AI, talks about how lenders in the FinTech space should be using AI and machine learning, and what key trends he has encountered through the years, and what we might expect to see in the future. Stay in the know with our latest insights:

Fraud threats continue to rise across the globe as consumers are spending record amounts of time online due to the pandemic. At the same time, emerging threats of fraud are growing, as fraudsters are taking advantage of the globally shifting economic conditions. Fraud prevention remains a top concern for both consumers and businesses alike. Anticipating future fraud risk is critical and companies are adopting more complex technology systems to ensure consumers’ financial safety. To provide a safe and convenient experience, businesses need to take a customer-first approach when evaluating the latest technology and solutions available to them. To ensure they are providing secure online experiences, businesses are turning to verification strategies using data technology and other detection methods. In fact, according to this year’s Global Identity and Fraud Report, customer recognition security strategies have become the new norm for businesses with 82 percent of companies saying they now have one in place, a 26 percent increase since the start of the pandemic. An independent research firm headquartered in Germany, KuppingerCole Analysts, released a report, Leadership Compass: Fraud Reduction Intelligence Platforms, that provides an overview of the market segment, vendor service functionality, prevention measures and innovative solutions to fraud. The report cites Experian as an overall leader, product leader, innovation leader, market leader and technology leader in fraud reduction intelligence platforms. Experian is also credited for taking a client-oriented upgrade approach and delivering other cutting-edge features while maintaining compatibility with our older platform releases. We also scored a strong positive for interoperability, usability, deployment, innovativeness, market position, financial strength and ecosystem; and a positive in security and functionality. We pride ourselves in our digital identity protection services and consumer safety, taking proactive approaches to fraud prevention and providing businesses with the necessary tools to identify risks of fraud. The report discusses fraud prevention measures and innovative solutions to fraud. According to the report, cybercrime costs will reach $10.5 trillion by 2025. The report evaluated 15 different data security and fraud prevention platforms and ranked their products, innovation, market positioning and technology in their report. All of Experian’s fraud detection and prevention services are available through our CrossCore® partner ecosystem. By combining advanced analytics, rich data assets, identity insights and fraud prevention capabilities, businesses can connect any new or existing tools and systems in one place, whether it be Experian’s, Experian’s partners or its own. With its built-in strategy design and enhanced workflow, fraud and compliance teams have more control to quickly adjust strategies based on evolving threats and business needs, which helps to improve efficiency and reduce operational costs. Learn more about the CrossCore platform.   Stay in the know with our latest research and insights:

Did you miss these August business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. Categorizing Fraud Types is the Key to Addressing Risk Security Magazine's Chris Ryan uses Experian research to break down why businesses need to first identify and understand the individual types of fraud before being in the position to address risk, especially when operating in an increasingly digital age. How To Protect Yourself Against Scammers and Deepfakes In this video, Philip Michael of Bold TV talks to David Britton, VP of Industry Solutions, about what fraud looks like in an AI-driven world, what exactly Deepfakes are, how they can be used in financial scams, and how Experian is using tools like AI and ML to fight back. Today’s Credit Decisioning: Navigating the Current Complexities The science of consumer credit decisioning is complex, writes Harry Singh, SVP of Global Decisioning, for Credit Union Times, but what has the pandemic done to further these complexities? This piece explains why lenders need to rethink existing models and processes to succeed in changing times. Experian Named Top Fraud Prevention Leader in International Analyst Report Research from KuppingerCole lists Experian as an overall leader in fraud reduction intelligence platforms. The research also recognized leadership in product, market and innovation, and across all other categories. Read about why this is important as fraud risks rise. How To Combat Fraudsters As The Digital World Grows In this piece for CEO World, David Britton, VP of Industry Solutions, writes about the relentless nature of fraud and why the goal of fraudsters never changes, and what businesses and individuals must to in the face of an ever-evolving fraud landscape in an increasingly digital world. Stay in the know with our latest research and insights: