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Intellicheck Blog


  • The onboarding process for financial institutions is twofold–attracting: the right customers and complying with know your customer (KYC) rules. 

    Attracting the wrong kinds of customers costs your company more than you might suspect. Often enough, a dodgy churn rate can be traced back to a marketing misfire–when customers are attracted using the wrong incentives, they are more likely to bolt when another business presents them with a better incentive.

    Compliance is equally important as the consequences for non-compliance can prove disastrous for many businesses. Besides the immediate threat of a steep fine or imprisonment, your business's reputation can be irreparably damaged when money laundering or funding illicit activities occur under your brand.

  • The primary purpose of ID verification is to know who is on the other end of each transaction. While identity verification has been a must in many industries for some time, the advent of the Internet has brought new layers of complexity into view that threaten to render existing ID management and validation approaches obsolete.

    For businesses, in particular, digital ID verification goes beyond validating participants in transactions–it allows companies to comply with the kinds of regulations that are beginning to take shape around the world as well as improve security and user satisfaction along the way. Bottom line: ID verification will soon play an even more essential role in everyday transactions.

  • Stopping payment fraud is no small feat, but has to be done in order to safeguard your business. Statistics show that more than a third of Americans have had their identity stolen and have been victims of credit card fraud. 

    With card-not-present fraud outpacing point of sale fraud, it’s increasingly important for payment processing companies to stay ahead of the game. Here are three risks all payment process companies face.

  • Fraud assessments are special tests designed to discover your business's current fraud risks. Vulnerabilities of all types must be carefully analyzed and, ultimately, addressed for a complete fraud assessment to work as intended. That’s why it’s important for both internal and external risks to be considered. 

    Professionals in this sphere not only help in identifying existing risks to your organization but also assist in crafting an effective roadmap for responding to such risks, however, if you aim to tackle a fraud assessment on your own, the following checklist is a great start:

  • 3 Steps To Effective KYC Compliance

    All financial services companies need a KYC or "know your customer" program. 

    KYC compliance goes beyond keeping your company's legality in the clear; effective KYC processes produce favorable results such as helping curbing fraud risks, preserving your company's reputation, and avoiding costly fines and sanctions.

    For financial service providers and a growing assortment of fintech industry participants, effective KYC compliance can be the difference between growing market share and shutting down for good. 

    Taking appropriate steps to learn more about your company's customers, including their reasons for transacting with you and the amount of risk their transactions may present for your business, helps keep your company out of hot water. 

  • The risks account takeovers pose to consumers are significant, but those they pose to businesses are equally so. For customers of companies whose services involve some degree of data custodianship, an account takeover can result in their private information being exposed to nefarious third parties. For merchants, such attacks can put their brand's performance at risk and jeopardize the trust customers have in them, leading to account abandonment and more.

    Protecting both your business and customers means staying ahead of fraudulent activity such as account takeovers. Here are the top statistics that can help you understand what you are up against.

  • The online gaming and esports community has grown to shocking heights in recent years, topping 1 billion in individual streamers per month in 2020. In fact, online gaming has become one of the largest sports in the world in terms of viewership and universities are now even offering full-ride scholarships for their Esport teams. With popularity and widespread adoption continuing to soar, so have the dollars generated. Revenue produced by online gamers hit $159 billion in 2020 and is projected to exceed $200 billion by 2023. While a booming gaming industry opens many doors for businesses, it also spells trouble in the form of growing fraud threats.

    With online gaming's ascendancy comes a flood of fraudsters looking to take advantage of the industry's low payment barriers and wide access to sensitive information. Cloud accessibility and a lack of know-your-customer (KYC) implementations make gaming platforms particularly vulnerable to a variety of fraudulent schemes. Some established services even allow savvy fraudsters to trade in-game currencies for real-world funds, putting a price tag on account takeovers and similar threats. Mitigating fraud in online gaming requires powerful solutions and comprehensive planning.

  • With the expanding legalization of marijuana for recreational use, the industry is growing at a rapid pace. Because marijuana businesses are still considered relatively new to the business world and because cannabis is still a regulated product in all states, these new companies are under a microscope to ensure compliance. 

  • As much as 61% of all fraud that occurs in the U.S. is actually traceable back to call centers. Gaps in proper verification methods for inquiring customers can make call centers a fertile space for fraud to take root and wreak havoc. In fact, call center losses have continued to increase from $393M in 2015 to $775M in 2020.

    Stopping such a sudden influx of fraudulent calls from overrunning a mission-critical call center starts with understanding how it happens in the first place.

  • Throughout 2020, the cannabis industry saw significant growth. In Colorado alone, sales jumped 26 percent, reaching $2.2 billion by the year's end. This substantial increase coupled with positive projections for the industry’s future has led many to launch their own cannabis business. While success may seem imminent, ensuring you’re fully prepared to take on fraud attempts is especially crucial as allowing it can lead to major legal and financial consequences. 

    If you’ve recently opened a Cannabis business or are in the process of creating a dispensary business plan compliance and risk mitigation should be made a priority. Here, we discuss why and how to make regulatory compliance an easy feat. 

  • Employment Development Department (EDD) fraud poses a powerful threat to those who depend on unemployment benefits while in-between jobs.

    The state of California issued a massive amount of unemployment benefits between 2020 and 2021. In fact, a sudden influx of insurance claims tallied up to over $1 billion (more than any other state). Unfortunately, 10% of unemployment benefits were found to be fraudulent. These crimes not only put hundreds of thousands of people at risk of losing financial security but also threaten the state’s economy. 

  • As businesses have increasingly leveraged online sales models and Internet-enhanced shopping experiences to appeal to consumers, there has also been a rise in criminality. In fact, a recent report found that the cost of fraud is up 7.3% from 2019. Every $1 of fraud costs U.S. retailers $3.36. Preventing these crimes is only becoming more imperative as retailers are seeing up to 10% of their bottom line disappear as a direct result of retail fraud.

    The first step to retail fraud prevention is fixing common mistakes made by your organization that make it more vulnerable.

  • E-commerce sales are projected to surpass 20% of all retail sales by 2023. While E-commerce continues to grow so are fraudster’s methods as consumer fraud reached over $3.3 billion in 2020 alone. From simply making purchases with a stolen card to fabricating an ID, it’s important that online retailers are aware of the types of online retail fraud causing problems, as well as how criminals steal information. 

  • When Franklin D. Roosevelt signed the Social Security bill in 1935, a number of protective institutions came into being in the US. Among these, the Unemployment Insurance Program was drafted to help employable people who have lost their jobs.

    In the event that someone loses their job for reasons outside of their control, the Unemployment Insurance and Benefits programs implemented by both the federal government and individual states in the US provide economic relief to compensate. However, this relief is not unconditional and it is not provided indefinitely. Unemployment Insurance is ultimately paid by state governments, with varying qualifying standards, using funds collected through special payroll taxes.

    Unemployment Insurance across the country has historically been greatly needed, with unemployment rates at the height of US prosperity (1929) having rivaled those of Great Britain at its lowest historic point. Without unemployment benefits, many would face severe challenges in-between jobs, even though they might still be willing to work.

    So, what is unemployment fraud and how did it start? Individuals looking to take advantage of the social welfare system could bend the rules when reporting their employment status, location, physical condition, or even their identity. These attempts at unemployment fraud are surprisingly successful, with exorbitant cumulative costs for the system at large. In fact, in 2020, the Mississippi Department of Employment Security (MDES) reported that it paid out $3.4 million from fraudulent unemployment claims. 

    This kind of fraud wastes federal funds given to the state that might have been better allocated had fraudsters not claimed them and is far too common. 

  • You started your cannabis business because you saw the potential for tremendous growth in the industry and the positive impact cannabis can have on people's health. Not a bad move as the cannabis industry has grown quickly with the rapid legalization of recreational marijuana use in more and more states and sales projections of up to $37 billion by 2024

    It is clear that the space shows great promise, however, due to the type of business, there are a lot of unique roadblocks to consider.

  • In recent years, online retailers and service providers have found a large and growing international market of consumers willing to pay for their products. Unfortunately, this growth created a surge in online criminality and has cost many companies more than they anticipated.

    As web-based technology continues to evolve, so too do consumer expectations. A fast, frictionless online shopping experience has become a necessity to ensure success in the eCommerce space, but the technologies used to facilitate this also allow bad actors on the network to take advantage of customers and companies alike. Online retail customer verification strikes at the heart of this issue, making it possible for organizations to better serve their customers without negatively impacting the customer journey.

    In its earlier phases, online identity verification required significant human intervention to work smoothly. Owing to this, identity verification solutions were often inaccurate in their results and the potential for error was much higher. By leveraging data across multiple sources, such as credit bureaus, official government servers, mobile network service providers and even social media, new alternatives to traditional identity verification can preserve the customer experience while protecting all parties.

  • The increasing popularity and quality of fake IDs has caused many industries to run into issues. Consider a 2019 study that showed that almost 1 in 3 high school students had consumed alcohol in the previous week. Industries that serve smokers, drinkers, gamblers, and other age-restricted services have seen a major increase in the number of fake IDs being used. These IDs are most often used to trick a business when manual ID checks are the only security measure in place.

    Age verification scanners can improve the efficiency and accuracy of ID checks. For instance, it can reduce the risk of serving an underage customer due to manual ID check errors. This not only keeps your customers safe but saves your business from the potential consequences of serving underage customers, including FDA fines, warning letters, and even a loss of license. 

    Read on to learn about how you can save time and money by supplementing your personnel with an efficient age verification scanner.

  • Fraud does not limit itself to any particular business, it impacts all industries. While technology is improving and businesses are leveraging increasingly sophisticated fraud prevention methods, fraud is still on the rise.  In early 2020 the world shifted to a more remote, online environment and with that shift, came a 7% increase in fraud in the United States.  

    For banks and financial institutions, just one case of fraud can cost a business thousands of dollars. This makes it important to catch fraud before it happens and prevent lost revenue. Read these 4 fraud stories to see ways people and businesses have fallen victim to fraudsters: