It’s summer – don’t get burned

by Guest Contributor 1 min read May 31, 2011

It’s that time of year again – when people all over the U.S. take time away from life’s daily chores and embark upon that much-needed refresh: vacation! But just as fraud activity spikes during the holidays, there are also fraud trends suggesting spikes in fraudster activity during the summer.

With consumers on vacation, identity theft becomes easier. Consumers are most likely to break their normal spending trends and break patterns established by fraud analytics; and consumers are less likely to be as attentive to elements that can help minimize fraud while out of town. There has been plenty of research to demonstrate that fraudsters perpetrate account takeover by changing the pin, address, or email address of an account. Now, fraudsters are more likely to add themselves as an authorized user to the account, which may not be considered a high-risk flag in transactional decisioning strategies.

By identifying risky behaviors or patterns outside of a consumer’s normal behavior and an engaging in a knowledge based authentication session with the consumer, it is possible to help minimize the risk of fraud. Knowledge based authentication provides strong authentication and can be part of a risk-based approach to on-going account management, protecting both businesses and consumers from being burned, at least by fraudsters, while on vacation.

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