Report shows increased fraud attempts in 2017 for 2/3 of businesses

The report revealed that more than half of companies reported an increase in mobile-based fraud, led by device cloning; top challenges to fraud prevention are shifting tactics used by criminals, along with the complexity of identity verification and addressing rising synthetic identity fraud and improving the customer experience by reducing friction are key areas of strategic interest.

67% of organizations reported an increase in fraud attempts, compared to just 42% in 2016. Major breaches have provided criminals with more identity data to utilize as they constantly shift strategies to evade detection. Criminals also are using synthetic identity fraud (SIF), a combination of real and fabricated identity information used to create a new identity. Thirty-one percent of businesses say SIF has increased and 58% were “extremely” or “very” worried about it.

40% of respondents stated reducing friction was one of the biggest challenges facing companies with respect to identity verification and fraud prevention. The amount of breached data available, shifting tactics along multiple threat points, the emergence of more sophisticated methods and preventing fraud without added friction for a streamlined customer experience, have together made modern identity verification extremely complex.

Recent high-profile breaches and related media coverage may have had a positive impact. The number of businesses experiencing a lack of customer awareness about preventing fraud declined 15%, though it remains the third biggest challenge after the complexity of identity verification and shifting fraudster tactics.

IDology’s Annual Fraud Report surveyed of nearly 80 respondents from 58 companies across financial services, healthcare, insurance and ecommerce industries, and titles including C-level, vice president, director, manager and analyst in risk, fraud, compliance, product and operations departments.