One of the biggest concerns for business owners and financial institutions across the country is protecting their business from fraudulent activity. While it may make sense to cut corners to save money, fraud prevention tactics can save you from millions of dollars in losses, especially ID related fraud cases.
What Are The Typical Forms Of Fraud?
Fraudulent activity can come from a number of different directions, which creates an apparent need across multiple industries for fraud prevention technology. However, it is still important to understand the basics of the different kinds of fraud. For example:
- Synthetic Identity fraud: In synthetic ID fraud, criminals combine false and real information to create a brand new identity. They use these IDs for fraudulent transactions and open fraudulent accounts. For example, fraudsters might use a real social security number and birthday but create a fake address and name.
- Identity Theft: This crime involves obtaining financial and personal information from any person. The sole purpose of assuming someone’s identity is to commit fraud for transactions and purchases.
- Credit Fraud: Credit fraud is a broad term for when fraudsters use credit cards to buy services and products with intentions to evade payments. Credit fraud typically includes some form of identity theft for a cybercriminal to appear legit. Credit fraud can happen both using your credit cards online and using in-store credit cards and can be difficult to authenticate.
- Child Identity Theft: This has become increasingly common and occurs when a fraudster steals a child’s social security number to accrue debt. It can include taking out loans, applying for a job or government benefits, and opening credit accounts. Children are more vulnerable because they have no pre-existing credit history and would not notice the fraudulent activity until they become adults.
In all the cases, the most important fact to note is that businesses like yours are typically left to absorb the costs from fraud and end up paying hefty premiums.
What Are The Standard Fraud Prevention Tactics and Methods?
The battle against fraud for businesses and financial institutions has a history of long-fought conflicts. And, as technology continues to surpass existing preventive measures, it is crucial to go above and beyond the typical measures and implement these fraud prevention tactics such as:
Knowledge Based Authentication (KBA)
KBA is an authentication process when you ask a customer some personal questions that only they will know the answers to, such as what is their monthly car loan payment, or the last four digits of their cell phone, etc.
However, this method can be ineffective as fraudsters are getting sharp, and this information is traceable using various means, such as public records, premium bills online, and social media accounts.
Also known as dual-factor verification, 2- factor authentication requires a customer to go through two security barriers of verification by providing two different authentication details. A seasoned hacker can get your password, and if they cannot bypass the second step of the authentication, they use social engineering.
It means they will send a message to a targeted consumer that “someone is trying to access your account if it is not you then enter your security code here” or something along those lines. People who fall for the message may fall victim to identity fraud.
ID Authentication Software
Authentication software is typically a simple ID barcode scanner that pulls relevant information and displays it for on your POS system. That said, standard scanners usually don’t catch fake driver’s licenses. In fact, most fake ID producers have learned to get around the basic scanners and use this as a selling point when creating fakes.
With the help of a better system, authentication software can help solve your ID fraud problems while saving your business money. Enter Intellicheck.
How Does Intellicheck Save You Money?
It can seem counterintuitive to invest in additional software to save money. However, a more sophisticated platform like Intellicheck can save you money in a variety of ways, especially when it comes to resources spent on fraud prevention. Intellicheck is an ID authentication platform that is used by financial institutions, law enforcement agencies, State ID producers, and age-restricted businesses across the country.
With overall losses amounting to more than $16.9 billion from identity fraud in 2019, it is increasingly important to catch fraudsters before they are funneled into your system. For example, bad authentication measures can cost your business millions of dollars from fraudsters who managed to bypass simpler verification efforts. Intellicheck allows you to cut out unnecessary and inaccurate fraud prevention tactics with 99% accuracy, saving you time and money.