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Identity Theft Continues to Grow – and Your Customers Want You to Protect Them

Published: December 13, 2023 by Brian Funicelli

identity theft protection

Online activity is a routine part of people’s days. Americans spend an average of 4 hours and 25 minutes on their phones every day,[1] and many regularly use multiple devices to access the internet. However, with more time spent in the digital space, the risk of identity theft and fraud also continues to grow.

The growing threat of identity fraud

This year, the FTC has already received 5.7 million total fraud and identity theft reports, 1.4 million of which were identity theft cases.[2] More consumers are becoming vulnerable to the threat of identity fraud, but many are unsure of how to protect themselves.

To avoid monetary loss and significant lifestyle disruption, consumers are looking to their financial institutions to provide resources to help them prevent identity theft and protect their personal information online.

Consumers want identity protection from their financial institutions

Consumers also expect their banks to carry the responsibility of protecting their private data from the risk of theft. While most of them trust in the security provided by their banks, about 50% of consumers want their banks to offer additional protective measures.[3] This creates an opportunity for financial institutions to fulfill the role of “data protector” for the customers that depend on them.

The convenience of a full suite of financial services all in one place is also important to consumers, as 45% would prefer to get all their banking products from the same financial institution.[4]

While consumers need identity protection, businesses need new ways to engage their customers and drive more revenue. Fortunately, offering identity protection is an effective way to maintain a sticky relationship with your customers while delivering an enhanced, engaging experience.

Protect your customers from fraud with Identity Protection Services

With identity protection, your customers can:

  • Check for exposed personal information and lower their risk of identity theft
  • Reduce their exposure and decide who can track their activity and access their personal information online
  • Keep control of their digital identity by reclaiming exposed personal information, increasing their privacy, and avoiding future risk

An identity protection solution provides a comprehensive strategy to avoid the risk of identity theft, while delivering exceptional results that your customers need to feel safe and secure.

Providing frequent updates and recommendations about their digital identity and credit score allows you to maintain an engaging communication channel with your customers and boost your brand interaction. For example, the average Experian® user had a 60% alert open rate and 12% post-alert login rate.[5]

As they continue to receive useful suggestions for strengthening their online security, your customers may interact with your app or website more regularly and consistently. This can create valuable opportunities for you to encourage them to open new accounts, start new credit lines, or borrow more money.

In addition, giving your customers an added layer of assurance can drive them to remain loyal, long-standing customers to your business.

  • 96% of active Experian subscribers with a free bundle were still subscribed after 12 months[6]
  • 90% of active Experian subscribers with a paid bundle were still subscribed after 12 months[6]
  • Less than 1% churn rate with fewer than 100 service calls[7]

Consumers want protection from thieves who might steal their personal information, and they expect it from a trusted source. By offering an identity protection solution, you can foster stronger relationships with your customers while reducing their vulnerability to fraud.

Visit our website to see how Identity Protection Services can help you deliver best-in-class protection for your customers.

[1]PC Magazine. Americans Check Their Phones an Alarming Number of Times Per Day. May 2023.

[2]IdentityTheft.org. 2023 Identity Theft Facts and Statistics.

[3]PYMTS. Half of Consumers Want More Security Measures From Banks, January 2023.

[4]PYMTS. 45% of US Consumers Want Banking Bundles. August 2022.

[5]Experian Data, average user experience with Digital Identity Manager, May 2023.

[6]Experiandata, August 2023.

[7]Experian Data, average user experience with Digital Identity Manager, May 2023.

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For $15, users can generate realistic government-issued IDs that can bypass identity verification checks, including Know Your Customer (KYC) processes on major cryptocurrency exchanges.1 Who’s at risk? AI-driven identity fraud is a growing problem for: Financial services – Fraudsters use AI-generated IDs to open bank accounts, apply for loans and commit credit card fraud. Without strong identity verification and fraud detection, banks may unknowingly approve fraudulent applications. E-commerce and retail – Fake accounts enable fraudsters to make unauthorized purchases, exploit return policies and commit chargeback fraud. Businesses relying on outdated identity verification methods are especially vulnerable. Healthcare and insurance – Fraudsters use fake identities to access medical services, prescription drugs or insurance benefits, creating both financial and compliance risks. The rise of synthetic ID fraud Fraudsters don’t just stop at creating fake IDs — they take it a step further by combining real and fake information to create entirely new identities. This is known as synthetic ID fraud, a rapidly growing threat in the digital economy. Unlike traditional identity theft, where a criminal steals an existing person’s information, synthetic identity fraud involves fabricating an identity that has no real-world counterpart. This makes detection more difficult, as there’s no individual to report fraudulent activity. Without strong synthetic fraud detection measures in place, businesses may unknowingly approve loans, credit cards or accounts for these fake identities. The deepfake threat AI-powered fraud isn’t limited to generating fake physical IDs. Fraudsters are also using deepfake technology to impersonate real people. 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Strengthen synthetic identity fraud detection – Detecting synthetic identities requires a combination of behavioral analytics, document verification and cross-industry data matching. Advanced synthetic fraud detection tools can help businesses identify and block synthetic identities. Stay ahead of AI fraudsters AI-generated fake IDs and synthetic identities are evolving, but businesses don’t have to be caught off guard. By investing in identity solutions that leverage AI-driven fraud detection, businesses can protect themselves from costly fraud schemes while ensuring a seamless experience for legitimate customers. At Experian, we combine cutting-edge fraud prevention, KYC and authentication solutions to help businesses detect and prevent AI-generated fake ID and synthetic ID fraud before they cause damage. Our advanced analytics, machine learning models and real-time data insights provide the intelligence businesses need to outsmart fraudsters. Learn more *This article includes content created by an AI language model and is intended to provide general information. 1 https://www.404media.co/inside-the-underground-site-where-ai-neural-networks-churns-out-fake-ids-onlyfake/

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