How to fight identity fraud?

May 29, 2024

Identity theft is a serious issue, especially in today's highly connected world. Cyber fraud attempts have been on the rise with the digital transformation. According to Mastercard, 66% of small-to-midsized businesses in the US experienced at least one cyber incident in 2023. Another study from Javelin Strategy & Research found that identity fraud cost $56 billion to US businesses in 2021.

Given this situation, new security challenges arise to fight identity fraud within businesses.

Identity Fraud in Brief

Identity fraud is a criminal offense punishable by law. However, fraudsters continue their cyberattacks. Understanding their methods is crucial to anticipating their fraudulent attempts. The first method involves stealing the identity of an existing individual. The second method is creating an identity from scratch.

To achieve this, fraudsters use a person’s personal data without consent to perform malicious activities. Identity thieves can damage your reputation, conduct dubious financial operations, or commit reprehensible acts in your name.

What Are the Most Common Types of Identity Fraud?

Unfortunately, the list is long and will likely continue to evolve as businesses change their operating models. Among the main types of identity fraud, two stand out:

  • Document Fraud: 

This involves falsifying, counterfeiting, or illegally modifying professional or commercial documents (invoices, purchase orders, contracts, etc.) to gain an undue advantage or cause harm to the business. With the rise of AI, this technique is becoming less artisanal. Digital counterfeiting and falsification have become easier for fraudsters thanks to numerous tools at their disposal, such as digital filters to alter key identity data.

  • Facial Identity Fraud: 

Face spoofing is a favored tactic for fraudsters. They now know how to use a person’s biometric data to achieve their goals. This identity theft takes the form of facial biometric attacks, where they impersonate someone to exploit their personal data. Today, they use increasingly sophisticated technologies, leveraging artificial intelligence and deepfakes.

Hence, the importance of integrating an automated KYC process to protect your business from identity fraud. To assess fraud risks, customer knowledge is the cornerstone for securing and sustaining your business. Check out our article to understand everything about KYC.

How Effective Is a Facial Biometrics Solution?

Facial biometrics is a cutting-edge technology for fighting identity fraud. It is designed for optimal identity verification to ensure that the person you are interacting with is indeed who they claim to be.

It is an effective solution for ensuring maximum security for its users in a world where digital interactions are skyrocketing. By relying on the unique physiological characteristics of a face, it becomes the new password to eliminate identity fraud risks. Discover in this article everything you need to know about facial biometrics.

Fighting identity fraud should not be a balancing act. While fraudsters today attempt to commit crimes by all means, businesses have effective solutions to maintain a reliable and efficient customer journey without compromise.