Identity fraud can refer to a wide range of fraudulent and criminal activities both online and offline, but we will discuss How To Reduce Identity Fraud, The main problems and some of the solutions to those problems from the perspective of an online retail business here.
Identity fraud has been defined as the usage of some other individual’s personal account information that contributes to fraud.
Identity theft is a crime that a lot of men and women fear. If you don’t know a lot about identity theft, then you ought to be certain that you read and understand such a legal activity. You can’t protect yourself, even if you don’t understand that offense!
Around the globe, people have started to admit that albeit a relatively new kind of criminal action the instances of theft and fraud are on the rise.
How To Reduce Identity Fraud
The cases of How To Reduce Identity Fraud, the case was generated over 27 million sufferers and the increasing loss of huge amounts of dollars to organizations and banking institutions from 1998 to 2006.
Identity theft is increasing at an alarming speed in Britain and it’s called to get worse. Not merely in the united states and the UK is Identity Theft is causing consideration however in the most significant country around the globe.
Stealing someone else’s individuality is an increasing business as fast as police agencies, government departments and financial institutions proceed to plug loopholes and openings, the offenders find new methods to exploit a basically faulty system predicated on conservative newspaper and awkward, non-invasive bureaucracies.
The period of identity fraud has grown remarkably popular in the previous ten decades. There are numerous explanations regarding which identity fraud would be I feel that it really is accurately referred to as the offense perpetrated if some one’s good name and identity is being stolen and used for prohibited purposes.
Identity fraud can be really a much wider problem compared to favorite knowing that offenders assume another individual’s identity to acquire cash, services, or property. Regrettably, burglars are very smart and they’re able to steal your information easily and put it to use in some sum of distinct ways.
#1. Fake IDs and Fake Purchases
According to data collected and published in 2017, fraudsters managed to steal a total of approximately $16 billion from 15.4 million US citizens in 2016 from fake transactions alone. The number is nothing short of astounding and unfortunately, businesses that accepted the fraudulent transactions usually had to suffer the losses as chargebacks.
#2. Will the Situation Improve?
The situation likely won’t improve since it has been estimated that by the year 2020, the total amount of chargeback from these fraudulent transactions will easily reach $30 billion or more.
To imagine that tens of billions of dollars will be stolen from honest online businesses, both big and small, is quite alarming, to say the least.
The good news is that there are ways for businesses to verify their customer accounts, IDs, card information, social security numbers, and much more so that they cannot cheat online retailers and their customers so easily.
#3. Using Cognito
Cognito offers a specialized security and verification service for online businesses, powered by their own identity verification API. They can verify online customers in real-time, with the help of just a phone number.
Cognito’s identity verification API can pull everything from the original name, date of birth, address, current status (living/deceased), and even the user’s SSN if required, without needing anything more than just the phone number.
They enable online merchants to verify the ID of every single customer, as soon as they attempt to make a purchase and without delay. Visit the website to know how this identity verification API could be your one-stop solution to filtering out almost every fake account linked to the merchant site.
#4. Two-factor Authentication Should Really be a Basic Security Measure by Now
It is unfortunate that a large number of even the biggest names in the business have not yet adopted two-factor authorization on their websites.
Most international transactions, in particular, can be completed with just the credit card number and the CVV number at the back of the card.
Two-factor authentication, on the other hand, almost makes it impossible for cybercriminals to use stolen credit card numbers and IDs.
It could be implemented in the form of an OTP sent to the original card owner’s bank-registered mobile number, in addition to biometric security, similar to what we see with Apple Pay.
#5. Manual Reviews
There should be parameters set into the system that will alert the retailer about expensive purchases, frequent purchases within a short time from the same account, purchases made from unlikely geographic locations, etc.
Anything that raises suspicion should be manually reviewed before being confirmed and accepted.
As fraudsters are not going to give up anytime soon and the amount of money stolen every year will only increase for the foreseeable future, everything you can do to prevent identity fraud on your own online business needs to be done as soon as possible.