CEO Series: IDology’s 2015 Fraud Report Highlights

We know that collaboration is one of the most integral parts of stopping fraud. That’s why, for the third year in a row, we polled senior executives from IDology’s customer base. IDology customers come from a variety of industries – from banking and other financial services, to healthcare, retail, telecommunications, energy and utilities as well as other consumer and business services. Sizes of the companies range from large enterprise organizations to small business as well as non-profit and educational institutions.

The 2015 Fraud Report presents the collective input of some of the world’s most talented and diligent anti-fraud practitioners who have direct experience with this delicate security vs. convenience balance. I hope the key highlights and takeaways below provides some useful insights and helps you identify emerging threats and opportunities for your business.

Volume of Activity through Mobile Devices Growing

It’s no secret that mobile is gaining in popularity. As a result, we asked our customers a series of mobile-specific questions in order to gauge the volume of activity originating from mobile devices, what types of mobile fraud tactics are most prevalent and what level of investment on mobile they anticipate their organization making in over the next 12 months.

Nearly 60% of respondents said that the volume of activity that comes through mobile devices has increased over the past year. And, while mobile activity does not currently make up the majority of overall transactions for the surveyed organizations, the results indicate that the volume is growing and we anticipate this activity will grow in 2016.

Level of Investment on Mobile Expected to Increase

Business and user adoption of mobile technology and commerce are growing exponentially. Because of this, it is no surprise that organizations are planning to invest more in mobile over the next 12 months. More than 50 percent of those surveyed reported a plan to increase their level of mobile investments (funds, resources, time, etc.) in the coming year.

One area that many organizations plan on investing further in is mobile security. As consumers increasingly adopt the mobile channel, and more organizations move to mobile platforms, there is an amplified need for mobile-specific security solutions that enable real-time identity verification and fraud prevention.

Account Takeover via Porting, ANI Spoofing and Device Cloning Top Mobile Fraud Tactics

As more and more consumers turn to mobile devices to perform every day activities as well as share sensitive personal data, an increasing amount of fraudsters are embracing mobile as a way of targeting them. Mobile fraud takes on many shapes and sizes. In our survey, ANI Spoofing, Account Takeover via Porting, and Device Cloning received the top three responses from customers reporting that these methods are most prevalent in the mobile environment. Other tactics include Recycling Phone Numbers, Call Forwarding, SMS Intercept, SIM Cloning, Voice-mail Hack and SIM Swap.

Phishing and Information Theft Become More Widespread

While credit, debit and/or prepaid card fraud continues to be the most prevalent type of fraud for a third year in a row, several other forms of potential fraud made large jumps this year. Information theft, loss or attack seems to have increased the most this year. We expect this to be, at least in part, a result of the widespread data breaches that have continued to plague the industry. Due to increased data breaches, valuable consumer information has become readily available on black markets such as the dark web. Fraudsters can then purchase this identity information and use it to impersonate a legitimate consumer. The survey also saw an increase in account takeovers this year which goes hand in hand with information theft fraud.

Overall, our goal as a solutions provider, is to not only prevent fraud in the best way possible, but also to ensure that good customers encounter a streamlined experience with no friction, and those identities with potential fraud flags are seamlessly escalated and either approved through automated manual review processes or declined if determined fraudulent. To find out more about IDology or to speak with a representative, contact us today.

To download the complete seventeen page report, please visit this page.

About the Author: John Dancu has served as President and CEO of IDology since 2005 and is recognized for his leading edge innovations in both the identity and fraud spaces. John has a widespread track record in advising customers, including Fortune 500 companies, and pioneering industry collaboration initiatives. With John’s leadership, IDology has evolved into a recognized leader across multiple industries including financial services, mobile payments, healthcare, government and e-commerce for innovation and has become a leading voice coordinating the fight against fraud.

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