As we near the end of 2014, it’s time to take a look at your current identity verification and fraud prevention programs and identify key areas for improvement in 2015. IDology’s annual Fraud Report that was recently released is a great resource to aid in your efforts. You can download a copy of the report here. As revealed in this year’s report, suspected fraud attempts are on the rise. Because of this, businesses will need to approach identity verification dynamically and analyze trends in order to stay ahead of the changing fraud landscape. Our annual Fraud Report surveyed analysts, managers, and executives to see what they are up against as well as what they are doing to fight fraud and improve the customer experience.
Suspected Fraud Is on the Rise
The IDology Fraud Report takes survey responses from our customers across a variety of industries, providing insight from some of the world’s most diligent anti-fraud practitioners. One of the key takeaways from the report is the significant year-over-year increase in incidences of suspected fraud – from 66% in 2013 to 87% in 2014. Last year, these attacks seemed mostly confined to the financial services and banking industries, however, this year’s responses show that suspected fraud attempts are up across the board.
As a result, businesses must gain increased confidence that their id verification and fraud prevention programs are optimized to effectively fight fraud while still meeting their business goals. This is especially true for organizations working to make it easier for consumers to access their products or services with minimal friction.
Common Targets of Fraudulent Attacks
In order to ensure that good customers are getting in, and fraud is being kept out, organizations should be aware of where suspected fraud is occurring most. That way, they will be able to improve identity verification practices and ultimately protect customer privacy. According to our research, website applications continue to bear the brunt of attempted fraud. This can be the result of a number of factors, including:
- Increased willingness of customers to share information online
- New ways for potential fraudsters to gain access to valuable customer identity & account information online
- Need for organizations to enable multi-layered verification systems to establish true identities, ensuring John Smith is actually John Smith and not a fraudster with his stolen data
Preparing for Fraud in 2015
While the majority of surveyed organizations believes that credit, debit, and prepaid fraud is the most prevalent threat to overall success, they also feel that they are most prepared to deal with this type of fraud. This shows that businesses of all sizes and in all industries are investing more time and resources into robust identity verification and fraud prevention platforms. With dynamic solutions in place, organizations can help eliminate fraud and increase their confidence when processing customer-not-present transactions, while also driving customer acquisition and revenue. To learn more about id verification and fraud prevention solutions from IDology, contact a representative online to request a demo or call us at 866-520-1234 today.
Download a copy of our 2014 Fraud Report here.