DALLAS, April 16, 2019 /PRNewswire/ -- GIACT Systems®, the leader in helping companies positively identify and authenticate customers, today announced the release of a new white paper, The Changing Landscape of Identity Fraud, which explores emerging fraud trends found in Javelin Strategy & Research's 2019 Identity Fraud Study, sponsored in part by GIACT. The white paper identifies six key trends that are changing the dynamics of the battle against identity fraud and proposes solutions that companies across a spectrum of industries should consider to protect their customers against emerging identity threats.
After years of record-high fraud rates, 2018 saw the cost of fraud and the number of victims decrease for the first time in three years. The total amount of identity fraud in 2018 amounted to $14.7BB and impacted 14.4MM adults in the U.S. -- more than 5% of the total population.1 While decreasing levels of fraud might bring some relief, GIACT found a more complicated picture: fraud is evolving and migrating; identity fraud has entered a new phase.
For example, as detailed in Javelin's study, there is an alarming trend of increasing losses for new account fraud (NAF) that showed a substantial 13% increase, costing consumers more out-of-pocket. Fraudsters have also shifted their focus to high value, less fortified areas that are more susceptible to NAF -- specifically loan originations. Alarming still, from a consumer perspective, attacks are costing victims greater time and expense.
"We're seeing a migration: fraudsters are evolving and deploying proven tactics against newer, less conventional targets – and it's working," said David Barnhardt, EVP of Product, GIACT. "The problem with fraud is not only does it impact a company's revenue, resulting in unacceptably high losses, but it is also damaging to a company's reputation. Relationships are built on trust. If companies don't take the necessary steps to mitigate fraud and ensure their customers are protected, they're breaking that trust."
"With fraud migrating to new accounts and unconventional account targets, fraud mitigation tools that capture, validate and monitor customer identities will need to be applied to account types that might not have these capabilities in place today," said Al Pascual, senior vice president, research director and head of fraud & security at Javelin Strategy & Research. "The market for these types of tools will be much more diverse – and include industries such as insurance, automotive, telecom, mortgage and others – than in years past."
GIACT is the only financial technology provider that offers a complete set of enrollment, payment, identity, compliance and mobile solutions easily accessed through its single, customizable EPIC Platform®.
GIACT has been helping companies verify valued customers since 2004. From financial to insurance, to retail, to solutions for your industry, GIACT offers customer intelligence for complete payment confidence. As the leader in providing real-time data to help companies mitigate payment risk and fraud, our OFAC screening, ID verification, account verification and authentication, and mobile verification solutions enable you to focus on providing unmatched customer experiences. Since our founding, we've processed billions of transactions for our more than 1,000 customers. For more information, visit www.giact.com or call 1-866-918-2409. Follow us on LinkedIn and Twitter.
- Javelin Strategy & Research, "2019 Identity Fraud Study," March 2019.
SOURCE GIACT Systems