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Prevalent Fraud Attempts and Its Threat to Businesses across Industries

According to a recent report by IDology, companies, regardless of their industry, are battling with increasing and more complex fraud attempts from different channels.
In the current year, 67% of businesses have recorded an alarming increase of attempted frauds; a 58% difference from 2016 figure which stood at 42%. These criminals have taken advantage of major loopholes which gives them access to more identity data to work on, as they constantly review their strategies in order to bye-pass security protocols.
These fraudsters use highly advanced and difficult-to-detect schemes like Synthetic Identify Fraud (SIF), which is a mix of genuine and made-up identity data, combined to form a whole new identity. Statistics reveal that 31% of organizations reported an alarming increase of SIF, while 58% express great concerns and worries about the emerging threat.
Even with the increasing threats and high-tech fraud schemes, these businesses are also making great efforts to enhance the experience of their genuine customers by decreasing friction and simplifying their identity verification process. 40 Percent of the businesses complained that friction reduction was a major challenge they faced as regards customer identity verification and prevention of criminal activities.
With the high number of breached data, constant review of fraud detection measures, increase of highly sophisticated schemes, and reduction of fraud without interfering with customer experience, present day identity verification process have turned out to be extremely complex.
The CEO of IDology, John Dancu, postulates that the above statistics is an indicator of the increase in fraud in respect to dominance, forms, and complexity. This trend, John claims, is gradually redefining organizations’ approach to identity verification process. Owing to the current trend, identity collection and assessment based on various degrees of information from several sources, such as mobile devices data, ensures genuine customers are granted safe and easy access. This is in a bid to increase security, and maintain customer experience.

However, recent media reports on top-profiled breaches seem to have had a remarkable impact. Records showed a 15-percent decline in the number of organizations who reported inadequate awareness of customers on fraud prevention. Nevertheless, besides the complex nature of verifying identities and a shift in criminal tactics, inadequate customer awareness remains the third principal challenge faced by businesses.