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Intellicheck Blog

Category : Blog

  • 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.