Loading...

Technology-Sharing Is Critical in Preventing Fraud

Published: December 7, 2016 by Adam Fingersh

Technology-Sharing cybersecurity fraud prevention

Fraud and cybersecurity are two of the biggest risks challenging organizations and the economy today. Fraud has become its own industry, to the tune of $500 billion in estimated losses annually to the global economy.

Increasingly, the public seems resigned to the idea that such compromises are the new normal. An estimated 1.9 million records are compromised every day, and news of breaches seems to break constantly. All of this produces a kind of fraud fatigue that may be lowering consumers’ expectations for identity and online security. Still, businesses must continue their efforts to prevent fraud attacks to protect all parties’ interests. The rapid growth of fraud-related activity only reinforces the need for aggressive fraud prevention strategies and the adoption of new technology to prepare for the latest emerging cybersecurity threats.

These challenges highlight the need to improve the effectiveness of current processes and future technology roadmaps.  The good news is that we know the elements needed to strengthen fraud risk strategies already exist. The question most often asked is how to utilize them, so I’ve put together those I think are most important:

  • First, a multi-layered authentication and risk-based approach is the best method to prevent fraud.
  • Take a comprehensive approach to identity with true customer intelligence.
  • Avoid silos and recognize the value of combining your solutions into one platform

Want to learn more?  You can read the full article below or here.
_______________________________________________________

Technology-Sharing Is Critical in Preventing Fraud

fraud prevention technology

Fraud and cybersecurity are two of the biggest risks challenging organizations and the economy today. Fraud has become its own industry, to the tune of $500 billion in estimated losses annually to the global economy.

Increasingly, the public seems resigned to the idea that such compromises are the new normal. An estimated 1.9 million records are compromised every day, and news of breaches seems to break constantly. All of this produces a kind of fraud fatigue that may be lowering consumers’ expectations for identity and online security. Still, businesses must continue their efforts to prevent fraud attacks to protect all parties’ interests. The rapid growth of fraud-related activity only reinforces the need for aggressive fraud prevention strategies and the adoption of new technology to prepare for the latest emerging cybersecurity threats.

Many businesses understand that combining data and technology to strengthen their fraud risk strategies can help reduce losses. Ever-evolving fraud schemes, changes in regulatory requirements and the advent of new digital initiatives make it difficult for businesses to manage all of the tools needed to keep up with the relentless pace of change. The systems used internally by businesses have become increasingly complex, expensive, and difficult to integrate and manage. This complexity tests an organization’s ability to scale in response to new risks quickly and causes too much friction for customers, often resulting in a bad customer experience.

These challenges highlight the need to improve the effectiveness of current processes and future technology roadmaps. The good news is that we know the elements needed to strengthen fraud risk strategies already exist. The question most often asked is how to utilize them, so I’ve put together strategies that I think are most important.

First, a multi-layered authentication and risk-based approach is the best method to prevent fraud. This aligns with the National Institute of Standards and Technology’s efforts to establish standards and guidelines for identity-proofing and credential management for consumers.

The most successful companies in this mission are those that take a comprehensive approach with true customer intelligence. Rather than rely on a single data point, these companies ensure they use multiple sources and types of data, for examples, combining personally identifiable information (PII) with digital identity or device intelligence. The combination of these seemingly disparate types of data not only offers a better picture of the customer but also makes it easier to identify when a fraudster has compromised the identity.

Those same companies are now able to frustrate criminals by broadening from a focus solely on the accuracy of an identity to looking at the use patterns associated with that identity as well. This strategy does two important things:

  • Determine which identities—or pieces of identities—are potentially in use by someone other than their true owner
  • Isolate those identity attributes that a criminal must re-use because changing them every time is too costly and complicated

Fraud-detection algorithms that analyze use patterns have long focused on the re-use of data elements through link analysis to identify common phone numbers and addresses. This represents a fairly basic approach to detecting fraud, but the sophistication of this type of analysis is evolving. Newer solutions on the market can link a wide variety of data elements in a user-driven manner within the customer’s enterprise so it is both dynamic and focused on fraud trends that impact a specific business.

Companies have also learned to avoid silos or have at least figured out how to build a bridge between silos so information can not only be shared but also leveraged in order to protect both the business and the customer while providing a better overall experience.

Lastly, organizations are recognizing when they are not getting full value out of the many fraud systems and products they use, and are making the strategic decision to rectify it through shared technology platforms that improve efforts to detect and respond to emerging threats. Combining all new and existing fraud solutions into one platform lets companies quickly respond to new threats, which means less fraud and more confidence in transactions.

By creating true customer intelligence, sharing it across the organization and then leveraging all of their available systems and tools, the most successful companies take a more open approach, which allows them to create greater operational efficiency by getting more out of existing fraud and identity systems. They also are able to deploy new fraud detection capabilities effectively and decrease the time it takes to go to market with new tools and strategies. Keeping more control in the hands of the fraud team to adapt and deploy strategies that match the pace of fraud also reduces the burdens on IT and data science teams.

The cycle of fraud loss and deterioration of the customer experience characterizes life in today’s globally connected digital world. With crime rings stepping up the scale, sophistication, and velocity of their attacks, it’s likely that such threats will persist and even increase in the foreseeable future.

The evolution of fraud prevention has shifted, allowing for users to create intelligence across an enterprise connected to internal applications and third-party solutions. This evolution strengthens fraud risk strategies and improves compliance. The link between data and technology ultimately determines the impact on overall fraud losses.

Related Posts

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Phasellus at nisl nunc. Sed et nunc a erat vestibulum faucibus. Sed fermentum placerat mi aliquet vulputate. In hac habitasse platea dictumst. Maecenas ante dolor, venenatis vitae neque pulvinar, gravida gravida quam. Phasellus tempor rhoncus ante, ac viverra justo scelerisque at. Sed sollicitudin elit vitae est lobortis luctus. Mauris vel ex at metus cursus vestibulum lobortis cursus quam. Donec egestas cursus ex quis molestie. Mauris vel porttitor sapien. Curabitur tempor velit nulla, in tempor enim lacinia vitae. Sed cursus nunc nec auctor aliquam. Morbi fermentum, nisl nec pulvinar dapibus, lectus justo commodo lectus, eu interdum dolor metus et risus. Vivamus bibendum dolor tellus, ut efficitur nibh porttitor nec. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Maecenas facilisis pellentesque urna, et porta risus ornare id. Morbi augue sem, finibus quis turpis vitae, lobortis malesuada erat. Nullam vehicula rutrum urna et rutrum. Mauris convallis ac quam eget ornare. Nunc pellentesque risus dapibus nibh auctor tempor. Nulla neque tortor, feugiat in aliquet eget, tempus eget justo. Praesent vehicula aliquet tellus, ac bibendum tortor ullamcorper sit amet. Pellentesque tempus lacus eget aliquet euismod. Nam quis sapien metus. Nam eu interdum orci. Sed consequat, lectus quis interdum placerat, purus leo venenatis mi, ut ullamcorper dui lorem sit amet nunc. Donec semper suscipit quam eu blandit. Sed quis maximus metus. Nullam efficitur efficitur viverra. Curabitur egestas eu arcu in cursus. H1 asdf asdf H2 H3 H4 Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum dapibus ullamcorper ex, sed congue massa. Duis at fringilla nisi. Aenean eu nibh vitae quam auctor ultrices. Donec consequat mattis viverra. Morbi sed egestas ante. Vivamus ornare nulla sapien. Integer mollis semper egestas. Cras vehicula erat eu ligula commodo vestibulum. Fusce at pulvinar urna, ut iaculis eros. Pellentesque volutpat leo non dui aliquet, sagittis auctor tellus accumsan. Curabitur nibh mauris, placerat sed pulvinar in, ullamcorper non nunc. Praesent id imperdiet lorem. H5 Curabitur id purus est. Fusce porttitor tortor ut ante volutpat egestas. Quisque imperdiet lobortis justo, ac vulputate eros imperdiet ut. Phasellus erat urna, pulvinar id turpis sit amet, aliquet dictum metus. Fusce et dapibus ipsum, at lacinia purus. Vestibulum euismod lectus quis ex porta, eget elementum elit fermentum. Sed semper convallis urna, at ultrices nibh euismod eu. Cras ultrices sem quis arcu fermentum viverra. Nullam hendrerit venenatis orci, id dictum leo elementum et. Sed mattis facilisis lectus ac laoreet. Nam a turpis mattis, egestas augue eu, faucibus ex. Integer pulvinar ut risus id auctor. Sed in mauris convallis, interdum mi non, sodales lorem. Praesent dignissim libero ligula, eu mattis nibh convallis a. Nunc pulvinar venenatis leo, ac rhoncus eros euismod sed. Quisque vulputate faucibus elit, vitae varius arcu congue et. Ut maximus felis quis diam accumsan suscipit. Etiam tellus erat, ultrices vitae molestie ut, bibendum id ipsum. Aenean eu dolor posuere, tincidunt libero vel, mattis mauris. Aliquam erat volutpat. Sed sit amet placerat nulla. Mauris diam leo, iaculis eget turpis a, condimentum laoreet ligula. Nunc in odio imperdiet, tincidunt velit in, lacinia urna. Aenean ultricies urna tempor, condimentum sem eget, aliquet sapien. Ut convallis cursus dictum. In hac habitasse platea dictumst. Ut eleifend eget erat vitae tempor. Nam tempus pulvinar dui, ac auctor augue pharetra nec. Sed magna augue, interdum a gravida ac, lacinia quis erat. Pellentesque fermentum in enim at tempor. Proin suscipit, odio ut lobortis semper, est dolor maximus elit, ac fringilla lorem ex eu mauris. Phasellus vitae elit et dui fermentum ornare. Vestibulum non odio nec nulla accumsan feugiat nec eu nibh. Cras tincidunt sem sed lacinia mollis. Vivamus augue justo, placerat vel euismod vitae, feugiat at sapien. Maecenas sed blandit dolor. Maecenas vel mauris arcu. Morbi id ligula congue, feugiat nisl nec, vulputate purus. Nunc nec aliquet tortor. Maecenas interdum lectus a hendrerit tristique. Ut sit amet feugiat velit. Test Yes asedtsdfd asdf asdf adsf Related Posts

Published: March 1, 2025 by Jon Mostajo, test user

Romance scams target individuals of all ages and backgrounds. Financial institutions need to protect their customers from these schemes.

Published: February 5, 2025 by Alex Lvoff

As data breaches become an ever-growing threat to businesses, the role of employees in maintaining cybersecurity has never been more critical. Did you know that 82% of data breaches involve the human element1 , such as phishing, stolen credentials, or social engineering tactics? These statistics reveal a direct connection between employee identity theft and business vulnerabilities. In this blog, we’ll explore why protecting your employees’ identities is essential to reducing data breach risk, how employee-focused identity protection programs, and specifically employee identity protection, improve both cybersecurity and employee engagement, and how businesses can implement comprehensive solutions to safeguard sensitive data and enhance overall workforce well-being. The Rising Challenge: Data Breaches and Employee Identity Theft The past few years have seen an exponential rise in data breaches. According to the Identity Theft Resource Center, there were 1,571 data compromises in the first half of 2024, impacting more than 1.1 billion individuals – a 490% increase year over year2. A staggering proportion of these breaches originated from compromised employee credentials or phishing attacks. Explore Experian's Employee Benefits Solutions The Link Between Employee Identity Theft and Cybersecurity Risks Phishing and Social EngineeringPhishing attacks remain one of the top strategies used by cybercriminals. These attacks often target employees by exploiting personal information stolen through identity theft. For example, a cybercriminal who gains access to an employee's compromised email or social accounts can use this information to craft realistic phishing messages, tricking them into divulging sensitive company credentials. Compromised Credentials as Entry PointsCompromised employee credentials were responsible for 16% of breaches and were the costliest attack vector, averaging $4.5 million per breach3. When an employee’s identity is stolen, it can give hackers a direct line to your company’s network, jeopardizing sensitive data and infrastructure. The Cost of DowntimeBeyond the financial impact, data breaches disrupt operations, erode customer trust, and harm your brand. For businesses, the average downtime from a breach can last several weeks – time that could otherwise be spent growing revenue and serving clients. Why Businesses Need to Prioritize Employee Identity Protection Protecting employee identities isn’t just a personal benefit – it’s a strategic business decision. Here are three reasons why identity protection for employees is essential to your cybersecurity strategy: 1. Mitigate Human Risk in Cybersecurity Employee mistakes, often resulting from phishing scams or misuse of credentials, are a leading cause of breaches. By equipping employees with identity protection services, businesses can significantly reduce the likelihood of stolen information being exploited by fraudsters and cybercriminals. 2. Boost Employee Engagement and Financial Wellness Providing identity protection as part of an employee benefits package signals that you value your workforce’s security and well-being. Beyond cybersecurity, offering such protections can enhance employee loyalty, reduce stress, and improve productivity. Employers who pair identity protection with financial wellness tools can empower employees to monitor their credit, secure their finances, and protect against fraud, all of which contribute to a more engaged workforce. 3. Enhance Your Brand Reputation A company’s cybersecurity practices are increasingly scrutinized by customers, stakeholders, and regulators. When you demonstrate that you prioritize not just protecting your business, but also safeguarding your employees’ identities, you position your brand as a leader in security and trustworthiness. Practical Strategies to Protect Employee Identities and Reduce Data Breach Risk How can businesses take actionable steps to mitigate risks and protect their employees? Here are some best practices: Offer Comprehensive Identity Protection Solutions A robust identity protection program should include: Real-time monitoring for identity theft Alerts for suspicious activity on personal accounts Data and device protection to protect personal information and devices from identity theft, hacking and other online threats Fraud resolution services for affected employees Credit monitoring and financial wellness tools Leading providers like Experian offer customizable employee benefits packages that provide proactive identity protection, empowering employees to detect and resolve potential risks before they escalate. Invest in Employee Education and Training Cybersecurity is only as strong as your least-informed employee. Provide regular training sessions and provide resources to help employees recognize phishing scams, understand the importance of password hygiene, and learn how to avoid oversharing personal data online. Implement Multi-Factor Authentication (MFA) MFA adds an extra layer of security, requiring employees to verify their identity using multiple credentials before accessing sensitive systems. This can drastically reduce the risk of compromised credentials being misused. Partner with a Trusted Identity Protection Provider Experian’s suite of employee benefits solutions combines identity protection with financial wellness tools, helping your employees stay secure while also boosting their financial confidence. Only Experian can offer these integrated solutions with unparalleled expertise in both identity protection and credit monitoring. Conclusion: Identity Protection is the Cornerstone of Cybersecurity The rising tide of data breaches means that businesses can no longer afford to overlook the role of employee identity in cybersecurity. By prioritizing identity protection for employees, organizations can reduce the risk of costly breaches and also create a safer, more engaged, and financially secure workforce. Ready to protect your employees and your business? Take the next step toward safeguarding your company’s future. Learn more about Experian’s employee benefits solutions to see how identity protection and financial wellness tools can transform your workplace security and employee engagement. Learn more 1 2024 Experian Data Breach Response Guide 2 Identity Theft Resource Center. H1 2024 Data Breach Analysis 3 2023 IBM Cost of a Data Breach Report

Published: January 28, 2025 by Stefani Wendel

Subscribe to our blog

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our Experian Insights blog

Don't miss out on the latest industry trends and insights!
Subscribe