Tag: fraud prevention

Property managers must leverage a solution that provides accurate, efficient, and compliant income and employment verification.

Learn about the benefits of a fraud consortium and how Experian's solutions can help prevent fraud without inconveniencing consumers.

A multilayered defense can help detect and prevent synthetic ID fraud, one of the fastest-growing types of fraud. Read more!

Almost every business that has an online presence will have to face and counter bot attacks. Read more to learn how.

Spoiler alert: Gen AI is everywhere, including the top of Experian’s list of fraud trends 2024. “The speed and complexity of fraud attacks due to new technology and sophisticated fraudsters is leaving both businesses and consumers at risk in 2024,” said Kathleen Peters, chief innovation officer at Experian Decision Analytics in North America. “At Experian, we’re constantly innovating to deliver data-driven solutions to help our customers fight fraud and to protect the consumers they serve.” To deter fraudulent activity in 2024, businesses and consumers must get tactical for their fraud fighting strategies. And for businesses, the need for more sophisticated fraud protection solutions leveraging data and technology is greater than ever before. Experian suggests consumers and businesses watch out for these big five rounding out our fraud trends 2024. Generative AI: Generative AI accelerates DIY fraud: Experian predicts fraudsters will use generative AI to accelerate “do-it-yourself” fraud ranging from deepfake content – think emails, voice and video – as well as code creation to set up scam websites. A previous blog post of ours highlighted four types of generative AI used for fraud, including fraud automation at scale, text content generation, image and video manipulation and human voice generation. The way around it? Fight AI fraud with AI as part of a multilayered fraud prevention solution. Fraud at bank branches: Bank branches are making a comeback. A growing number of consumers prefer visiting bank branches in person to open new accounts or get financial advice with the intent to conduct safer transactions. However, face-to-face verification is not flawless and is still susceptible to human error or oversight. According to an Experian report, 85% of consumers report physical biometrics as the most trusted and secure authentication method they’ve recently encountered, but the measure is only currently used by 32% of businesses to detect and protect against fraud. Retailers, beware: Not all returns are as they appear. Experian predicts an uptick in cases where customers claim to return their purchases, only for the business to receive an empty box in return. Businesses must be vigilant with their fraud strategy in order to mitigate risk of lost goods and revenue. Synthetic identity fraud will surge: Pandemic-born synthetic identities may have been dormant, but now have a few years of history, making it easier to elude detection leading to fraudsters using those dormant accounts to “bust out” over the next year. Cause-related and investment deception: Fraudsters are employing new methods that strike an emotional response from consumers with cause-related asks to gain access to consumers’ personal information. Experian predicts that these deceptive cause-related methods will surge in 2024 and beyond. How businesses and consumers feel about fraud in 2024 According to an Experian report, over half of consumers feel they’re more of a fraud target than a year ago and nearly 70% of businesses report that fraud losses have increased in recent years. Business are facing mounting challenges – from first-party fraud and credit washing to synthetic identity and the yet-to-be-known impacts generative AI may have on fraud schemes. Synthetic identity fraud has been mentioned in multiple Experian Fraud Forecasts and the threat is ever growing. As technology continues to enhance consumers’ connectedness, it also heightens the stakes for various fraud attacks. As highlighted by this list of fraud trends 2024, the ways that fraudsters are looking to deceive is increasing from all angles. “Now more than ever, businesses need to implement a multilayered approach to their identity verification and fraud prevention strategies that leverages the latest technology available,” said Peters. Consumers are increasingly at risk from sophisticated fraud schemes. Increases in direct deposit account and check fraud, as well as advanced technologies like deepfakes and AI-generated phishing emails, put consumers in a precarious position. The call to action for consumers is to remain vigilant of seemingly authentic interactions. Experian can help with your fraud strategy To learn more about Experian’s fraud prevention solutions, please visit https://www.experian.com/business/solutions/fraud-management.  Download infographic Watch Future of Fraud webinar

Review of Findings & Front-line Insights Panel Participants: Richard Goldberg (Moderator) – Constangy, Brooks, Smith & Prophete, LLP Michael Bruemmer – Experian Sean Renshw – RSM US, LLP Mark Greisiger – NetDiligence About NetDiligence Cyber Claims Study It is NetDiligence’s 13th year of doing this Cyber Claims Study. A total of 9,028 claims were analyzed during the past five years 2018-2022.An observation from the over 9,000 Cyber Claims (5000 of which are brand new claims this past year in 2023) analyzed is while many of the categories over the last five years have remained the same, the data has changed, sometimes dramatically. About Experian We provide call center coverage, notification coverage, as well as, identity theft protection, and all the consumer resolutions that go along with it for about 5000 data breaches every year, and I was delighted to be on the panel. Key Insights Experian has proudly sponsored the annual NetDiligence Cyber Claims Study for three years. During this time, I’ve witnessed companies adapt and transform their operations to confront the growing tide of cyber threats. The evolution of their infrastructure to anticipate and respond to these challenges has been remarkable and necessary. However, despite my front-row seat in this fast-changing landscape, the results of each study never fail to surprise and intrigue me. The insights from the latest study, conducted in 2023, continue to shape our understanding of the evolving cyber landscape. Ransomware’s Dominance Mark kicked off the discussion by shedding light on the escalating costs associated with cyber incidents. In 2022, the average incident cost for SME organizations remained stable at $169,000 (similar to the combined five-year window from 2018 to 2022 at about 175,000). However, there was a substantial increase for large companies, reaching $20.3 million in 2022 (and if you look at the five-year average, it was about 13 million). This surge raised eyebrows and set the stage for a deep dive into ransomware, a leading cause of concern. Examining Ransomware Trends The conversation swiftly shifted to ransomware, a pervasive threat in the cyber insurance landscape. As I stated, at Experian we see a correlation between the rise in ransomware and third-party breaches. Most of the industry experts on the panel participate in a Ransomware Advisory Group together. Mark brought up a good insight from our advisory group on the brazen tactics employed by threat actors lately, showcasing their intimate knowledge of the cyber insurance world. Business Sectors Under Siege Richard and Sean added to the discussion the top ten business sectors affected by ransomware, with professional services leading the pack. The impact on technology, with a payout of $830,000, stood out as well. Beyond Ransomware The conversation broadened to encompass other types of losses, such as social engineering and business email compromise. The focus on business interruption emerged as a key concern for cyber insurance claims, with the industry grappling with criminal acts versus non-criminal acts. Looking Ahead As the discussion unfolded, industry experts, including myself, expressed eagerness to anticipate the future cyber landscape. Predictions range from the industry mutating to the emergence of new players in the nation-state game. The role of artificial intelligence and innovative solutions from new vendors becomes a focal point of interest. In conclusion, the NetDiligence Cyber Claims Study 2023 Report paints a vivid picture of the challenges and transformations within the cyber insurance domain. The increasing sophistication of threat actors, coupled with evolving business strategies, sets the stage for continuous adaptation and innovation in the fight against cyber threats. As we look ahead, the resilience of businesses and the collaboration between industry stakeholders will play a pivotal role in shaping the cybersecurity landscape. I invite you to access the report and view the discussion replay for a deeper understanding of the challenges and transformations within the cyber insurance claims domain. Get NetDiligece Cyber Claims Study resources on-demand now! Download the report Watch the webinar NetDiligence’s latest Cyber Claims Study and Webinar, sponsored by Experian Data Breach, is available on-demand. This report serves as a resounding call to action, prompting businesses to ready themselves against cyber threats. Dive in to get insights and stay one step ahead of cyber adversaries.

With rapid growth comes an increased risk of fraud, making "Buy Now, Pay Never" a crucial fraud threat to watch out for in 2024.

We've released our 11th annual Experian 2024 Data Breach Industry Forecast to embark on a journey into the future of data breaches.

Approaches to payment fraud detection and prevention have evolved over time. Many organizations are now using AI and machine learning models.

The rise of remote work has significantly increased the prevalence of employment fraud. Learn how to safeguard your organization.

What is a data breach? It could impact your organization, and it is important for businesses to understand how to operate in it.

The online gaming industry has experienced tremendous growth. This surge in popularity has also sparked an increase in online gaming fraud.

Cris Ryan, Go to Market Lead for Experian Identity and Fraud, shares his thoughts on demand deposit account fraud and how to combat it.  

Sometimes logging into an account feels a bit like playing 20 questions. Security is vital for a positive customer experience, and engaging the right identity verification strategies is essential to proactive fraud prevention. For financial institutions and businesses, secure authentication is more important than ever. It is imperative for customer safety – which drives retention and loyalty – and your bottom line – as fraud has determinantal effects on and off the balance sheet. Information sharing has proliferated, as has the number of times consumers are prompted to provide access to sensitive information. While today’s consumer has grown accustomed to providing such information, there’s also a heightened demand for security. According to Experian’s 2023 U.S. Identity and Fraud Report, nearly two-thirds (64%) of consumers say they’re very or somewhat concerned with online safety, listing identity theft, stolen card information and online privacy as top concerns. Customers want to know who they are providing access to and whether that entity will have their safety in mind. From a business perspective, one way to ensure that only the right people can get in is by using (KBA). KBA takes traditional authentication methods, like passwords and Personal Identification Numbers (PINs), one step further by creating an additional layer of security through collecting private facts from each user. In this post, we'll look at how KBA works, what its benefits are as a form of identity verification, and how it can improve customer trust. Introducing Knowledge Based Authentication (KBA): What it is and how it works Knowledge Based Authentication can be part of a multifactor authentication solution and is one way to stay on top of privacy and security for your customers – existing and new. KBA is a feature designed to protect online accounts by verifying the account holder’s identity. It involves answering a series of personal questions, such as mother's maiden name or first pet's name, that only the account holder should know. This system has become increasingly popular due to its effectiveness in preventing fraud and identity theft. With KBA, businesses and individuals can have peace of mind that their information is protected by a reliable authentication system that is difficult for unauthorized users to breach. Benefits of implementing KBA and a multifactor authentication strategy By implementing KBA into your business, customers experience an additional layer of security by verifying the identity of users through personalized questions. This reduces the risk of fraud and enhances customer trust and confidence. Secondly, it improves the customer experience by making the authentication process faster and user-friendly. Lastly, KBA reduces costs by automating the authentication process and reducing the need for manual intervention. However, KBA is just one facet of an ideal strategy. Multifactor authentication provides confidence while reducing friction. Risk-based authentication tools allow organizations to assess risk to apply the appropriate level of security. Factors to consider adding to your authentication processes include: Generating unique one-time passwords (OTPs): By creating a new OTP for each transaction, you can increase the level of security. Confirm device ownership: A multifactored approach applies device intelligence checks to increase confidence that the message is reaching the correct user. Maintain low friction with secondary options: If the OTP fails or can’t be attempted by the user, working with a provider who allows an automatic default to another authentication service, such as a knowledge-based authentication solution, decreases end-user friction. Identifying potential security risks associated with KBA KBA relies on personal information that may easily be discovered via social media and other public records, which makes it vulnerable to fraud and identity theft. This highlights the need for a multilayered fraud and identity solution. The landscape of digital security is constantly changing, leveraging an arsenal of fraud and identity prevention strategies, like document verification, one-time passcode, and various identity authentication and verification measures, is critical for keeping your customers and business safe. Commonly used technologies for enhancing KBA security With the rising need for secure authentication, KBA systems have become increasingly popular. However, cyberthreats evolve at an alarming rate, making it imperative to stay current with the latest fraud schemes and how to enhance and supplement your security. Biometrics, like facial recognition and fingerprint scans, as a tactic is gaining traction, as evidenced by “85% of consumers report physical biometrics as the most trusted and secure authentication method they have recently encountered,” according to Experian’s 2023 U.S. Identity and Fraud Report. Additionally, machine learning algorithms detect patterns and anomalies in user behavior and flag any potential security breaches. Multi-factor authentication is another tool that adds an extra layer of security by requiring users to provide multiple forms of identification before logging in. Keeping up with these and other technological advancements can help ensure your KBA system stays one step ahead of potential cyberattacks. Interestingly, there’s a disconnect between the technologies consumers feel safe with and/or are prepared to use versus the technologies and strategies that organizations implement. According to the U.S. Identity and Fraud Report, biometrics are only currently used by 33% of businesses to detect and protect against fraud. An opportunity for business differentiation and driving customer loyalty through a better customer experience may be tapping into some of these lesser used – but sought after – technologies. Compliance with industry standards regarding KBA Ensuring that your system complies with industry standards regarding KBA is crucial for protecting sensitive information from unauthorized access. By implementing the following tips, you can stay ahead of the game and safeguard your organization's data. Analyze your system's current authentication methods and evaluate if they meet industry standards. Additionally, follow standard guidelines for data storage and encryption, limit access to only authorized personnel, and y current with regulations. Lastly, conduct frequent security audits and perform vulnerability tests to identify and address any potential threats. Knowledge-based authentication offers a robust security solution for businesses of all sizes, and incorporating KBA as part of a multifactor authentication strategy is a winning course of action. It provides an added layer of protection for personal data, encourages user accountability, and safeguards against unauthorized access. By leveraging appropriate KBA technologies and maintaining compliance with industry standards, it is possible to create a secure system for customers that gives you peace of mind for your business and bottom line. Experian can help you with knowledge-based authentication offerings, a multifactor authentication strategy and everything in between to enhance your existing authentication process without causing user fatigue. Increase your pass rates, confirm device ownership and add security to risky or high-value transactions, all while executing identity verification and fraud detection to protect your business from risk. The most important step is getting started. Learn more

Learn about travel, hospitality and hotel fraud and how you can best detect and combat it. Read more here!