Fraudsters Adopt New Tricks, ID Fraud Soars to All Time High

Sep 26, 2017

As fraudsters find new ways to imitate their victims, ID fraud soars to record levels. It would seem these criminals are applying for fake policies to build on the profiles of their victims. Fraud prevention service, Cifas, revealed that identity theft reached an all-time high during the first six months of 2017. According to their data, 89,000 identity frauds were recorded (up 5 percent from 2016).

Even more shocking, there has been a 10,000-percentage point increase in insurance fraud. Furthermore, for the first time, it would seem millennials are the main target for these fraudsters. Why? They fail to check their bank statements on a regular basis. After analyzing millions of credit files, Experian, a credit checking firm, discovered that individuals in their mid to late 20s are more likely to fall victim to fraud than those in their 60s.

Cifas Chief Executive, Simon Dukes, said, “We have seen identity fraud attempts increase year on year, now reaching epidemic levels, with identities being stolen at a rate of almost 500 a day. These frauds are taking place almost exclusively online. The vast amounts of personal data that is available either online or through data breaches is only making it easier for the fraudster.”

Dukes went on to urge businesses – especially small- and medium-sized businesses – to educate their staff on good cyber security behaviors. He explains that raising awareness to this huge threat and the techniques of fraudsters will help protect businesses. In addition to these efforts, businesses should also consider fraud prevention technology.

For example, with eMerchantBroker, merchants can secure fraud protection and prevention services. CBS’s Cardholder Dispute Resolution Network (CDRN) is powered by Verifi and the Ethoca alert system, and enables research and resolution of chargebacks. Your business will be notified of disputes when they occur, enabling you to act immediately to save your funds from being returned on invalid claims.

If you are seeking a solution that will protect your business, consider what eMerchantBroker Chargeback Shield can do for your business and customers. EMB’s chargeback fraud protection has reduced the frequency of merchant chargebacks by 15-30 percent. Minimize the risk of fraudsters trick’s by securing chargeback coverage for your small business. (*Chargeback Shield is not an insurance service. EMB does not sell insurance and Chargeback Shield is not insurance, it is an alert system.)


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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