ID Insight took the lessons learned from this research to develop a predictive model that combines individual risk indicators that help fraud investigators prioritize their queue and work the phone number changes that are most suspicious. By verifying the legitimacy of phone number changes, financial institutions are able to reduce the risks and constraints that may be holding them back from more fully utilizing the mobile channel.
Phone Change Fraud a Growing Problem
ID Insight, whose industry-leading anti-fraud solutions include address and identity verification tools for banks and credit unions, developed the new phone screen solution in response to the growing problem of fraudsters manipulating phone numbers as part of account takeover schemes. Criminals have recognized that when large money transfers are requested or other out-of-pattern account activity takes place, financial institutions are much more likely to place an outbound call or text to their customer to confirm the legitimacy of the requested account action.
Using an abundance of hacked personal data available on the black market, criminals pose as legitimate account holders and change the customer's contact information, ensuring fraud alerts and other bank communications are sent unwittingly to the perpetrator and paving the way for complete control over their accounts before the victim knows it is happening.
"The mobile phone is a critical channel for bank customers and financial institutions that rely on mobile banking, on-line account opening and mobile wallet applications for convenience," said Adam Elliott, founder and president of ID Insight. "Having controls in place to ensure the phone number in the customer profile actually belongs to the legitimate customer is critical for reducing fraud risk, which is why we added phone number screening to our portfolio of anti-fraud solutions."
To learn more about its new phone change solution and the company's full portfolio of anti-fraud technology for financial institutions, contact ID Insight (www.IDInsight.com) and schedule a demonstration.
About ID Insight
Established in 2003, ID Insight helps companies prevent fraud, reduce costs and capture more business by combining its massive collection of data on identities and profile changes with predictive scoring algorithms. ID Insight provides highly configurable verification, authentication, market research and fraud prevention solutions to financial services companies, credit issuers, retailers, online merchants and telecommunications companies. Visit www.idinsight.com to learn more.
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SOURCE ID Insight