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.)