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Category : Blog

  • 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: