With the rise in online transactions and the increasing number of people connected to the internet, fraud has become a major issue for businesses.
There are many different types of fraud, and they affect organizations in different ways. Some types of fraud are easier to deal with than others, but all require a solution that works well and doesn’t cost too much money or time to implement. Identity theft is one such type of fraud, and it has become increasingly common over the past few years.
Veriff’s 2021 Identity Fraud Report revealed that identity fraud comprised 52% of all fraudulent activity in the first quarter of 2022. These statistics make it clear that any organization should be taking steps to protect itself against identity theft by using an effective identity verification solution.
Identity verification solutions integrate cutting-edge technology to ensure that your company can accurately verify the identities of your employees, customers, and partners without having to worry about fraud or identity theft.
Credit Card Frauds
Identity Verification Solutions are a must-have for organizations of all sizes.
As per the research conducted by security.org, roughly half of American adults have been victims of credit or debit card fraud, and ID theft is one of the fastest-growing crimes in the country. The statistics are alarming, but they don’t paint the full picture.
The reality is that fraudsters are getting smarter, and they’re becoming more and more difficult to catch. How can your organization get ahead of these criminals?
Specialized identity verification solutions can help you detect fraudulent transactions before they cause damage to your business. These tools use advanced algorithms and machine learning techniques to analyze new transactions against thousands of past transactions and flag those that look suspicious or out of the ordinary.
These solutions make it easier for you to manage your accounts and ensure unauthorized people don’t have access to them. Many identity verification solutions are available today, including biometric methods such as fingerprint scanning and facial recognition technology.
Banks are experiencing a significant increase in fraud incidents. Per the PYMNTS, banks suffered a 41% increase in fraud incidents from 2021 to 2022.
Criminals are using increasingly sophisticated methods to trick consumers into giving up their personal information, including posing as representatives from the bank or even hacking into the bank’s systems themselves.
To combat these threats, banks should consider implementing identity verification solutions that can detect fraudulent activity on the front end and stop it before it happens.
Identity verification solutions help banks protect themselves from fraud by verifying the identities of their customers before they open accounts with them. These solutions also allow banks to verify that all transactions are legitimate by comparing them against other data sources. By doing so, they can prevent fraudulent transactions from happening in the first place.
However, there is no shortage of identity verification service providers in the market. But not everyone is genuine. Various companies provide these services, such as AU10TIX, which provides various solutions for different industries, including banking, finance, insurance, and healthcare.
Book a Demo before finalizing the provider so you can understand how the process works and what features are available. The demo will help you know how they work, how they verify identities, and whether they are capable enough to provide you with accurate information about your customers or employees.
Phone or Utility Fraud
Phone or utility fraud is the most common type and is also one of the hardest to detect. If your organization has many employees or you run a call center or other business that relies on customer phone calls, you will likely be hit by phone scams.
According to the Federal Trade Commission (FTC), 2.8 million consumers reported fraud last year. That’s disturbing enough but what’s even more alarming is that those figures mostly include imposter scams. In 2021, imposter scams accounted for more than $2.3 billion of those losses, up from $1.2 billion in 2020.
Imposter scams are when someone pretending to be an employee calls customers and asks them for their personal information to steal their identities.
Identity verification solutions can help organizations tackle this problem by ensuring that all employees have verified identities before they start working with customers over the phone or via email. This allows your business to verify who is making these calls.
Also, these solutions expertly manage scammers to exploit any entity while protecting customers’ personal information from being stolen while making those calls in the first place.
Employment or Tax Related Fraud
Employment or tax-related fraud is one of the biggest challenges organizations in the United States face today. As per CNBC, the IRS reported 5.2 million tax refunds for fraud last year, a 50% year-over-year rise.
There are several ways in which identity verification solutions can help organizations tackle employment and tax-related fraud. One is ensuring that employees do not use duplicate SSNs to file their taxes. This would ensure no chance of an individual getting more than one refund from the same employer during a single tax season.
Another way in which identity verification solutions can help organizations tackle such fraud is by ensuring they have access to all relevant information about their employees’ credit history before hiring them. This would help prevent employers from hiring individuals with bad credit scores or criminal records which may likely commit identity theft to steal money.
Taking a step back, it’s clear that identity verification solutions are a powerful tool for organizations to help them combat fraud. By using these solutions, organizations can be confident that their customers are who they say they are and that their transactions are secure.
The many benefits of identity verification solutions make it a no-brainer for organizations to implement these tools to protect themselves and their customers from fraud.