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Digital Identity, Security & Online Fraud

GIACT report: less victims of identity fraud, more new account fraud cases

Wednesday 17 April 2019 | 08:35 AM CET

After years of record-high fraud rates, 2018 saw the cost of fraud and the number of victims decrease for the first time in three years, according to GIACT’s white paper.

The white paper identifies six key trends that are changing the dynamics of the battle against identity fraud and proposes solutions that companies across a spectrum of industries should consider to protect their customers against emerging identity threats.

The total amount of identity fraud in 2018 amounted to USD 14.7 billion and impacted 14.4 million adults in the US, more than 5% of the total population. Still, while decreasing levels of fraud might bring some relief, GIACT found a more complicated picture: fraud is evolving and migrating; identity fraud has entered a new phase.

For example, as detailed in Javelin Strategy & Research's 2019 Identity Fraud Study, there is an alarming trend of increasing losses for new account fraud (NAF) that showed a substantial 13% increase, costing consumers more out-of-pocket. Fraudsters have also shifted their focus to high value, less fortified areas that are more susceptible to NAF, specifically loan originations. Alarming still, from a consumer perspective, attacks are costing victims greater time and expense.

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