What is Identity Fraud?
Identity fraud is a pervasive threat in today's digital landscape, where malicious actors exploit stolen personal information to conduct their fraudulent activities.
Identity fraud refers to the unauthorized use of someone else's personal information to perpetrate fraud, such as their name, social security number, or financial account details. This includes but is not limited to financial fraud, gaining unauthorized access to accounts, and engaging in criminal activities using a false identity.
Common Techniques Employed by Perpetrators:
- Phishing: Perpetrators use deceptive emails, messages, or websites to trick individuals into providing sensitive information
- Data Breaches: Hackers infiltrate databases to access large amounts of personal information, which is then used for fraudulent purposes
- Account Takeover: Criminals gain unauthorized access to individuals' accounts, posing as the legitimate account holders
- Synthetic Identity Theft: Fraudsters create new identities by combining real and fake information, which makes it even more challenging to detect
Impact of Identity Fraud:
- Financial Loss: Individuals and financial institutions (FIs) suffer financial losses due to unauthorized transactions and fraudulent activities
- Reputational Damage: Victims of identity fraud may experience reputational harm, impacting their personal and professional lives
- Legal Consequences: Individuals falsely implicated in criminal activities under stolen identities may face legal consequences
- Trust Erosion: Trust in digital systems and online transactions diminishes, affecting overall confidence in digital services and business reputations
How NICE Actimize Helps
Identity fraud is a growing threat to both customers and FIs, and it can be a gateway to account takeover and payment scams.
Check out this comprehensive reference guide on new payment scams and typologies that are trending up and existing ones that are gaining traction as faster payments are adopted globally.