The Growing Threat of Synthetic Identity Fraud and How Behavioral Biometrics Enables Organizations to Stop It Before Harm is Done
Prior to the COVID-19 pandemic, the financial services industry was experiencing a significant increase in synthetic identity fraud. By a report released by Aite-Novarica Group, US credit card synthetic identity losses are expected to increase by more than 55%, from $580 million in 2015 to $1.3 billion in 2020. However, due to the COVID-19 pandemic, many fraudsters have focused on simpler ways to maximize their return on investment, such as taking advantage of taxpayer-funded Paycheck Protection Loans (PPPs). In one article written by frankonfraud.com, it is mentioned that up to 15% of all PPP loans may have been fraud, which equates to $76 billion in potential stolen money. Fraudsters have also taken advantage of the pandemic to step up their efforts on social engineering scams. Speak FCCthe industry has seen a wide variety of social engineering tactics, such as robocall scams about health and financial issues, SMS scams about fake advertisements for remedies or fake tests, scam calls about vaccines with the intent to steal valuable personal or financial information, and more.
However, as the world continues to open up and COVID-19 relief programs ease, fraudsters are once again turning to synthetic identity fraud. According to a article released by Aite-Novarica Group, synthetic identity fraud for U.S. unsecured credit products is expected to grow from $1.8 billion in 2021 to $2.42 billion in 2023. Additionally, fraud officials express that synthetic identity fraud is a major concern, according to the recent survey completed by Aite-Novarica Group below:
Source: Aite Novarica
Not only do we expect to see an increase in synthetic identity fraud, but we also expect an increase in the sophistication of fraudsters to stay ahead of traditional checks used to detect identity fraud. synthetic identity. In this frankonfraud.com articleit is noted that “In 2021, identity thieves proved they could outwit driver’s license checks with realistic face masks. They proved they could fake their credit history with fake commercial lines virtually undetectable.And they received a plethora of online tools such as photos.generated to create an endless array of false images for identities. It was also noted in this article per pymnts.com that “traditional financial institution fraud detection approaches have failed to flag between 85% and 95% of credit applicants suspected of using synthetic identifiers.”
With the rise of synthetic identity fraud and the increase in sophistication used by fraudsters to circumvent traditional fraud controls, it is imperative that organizations invest in tools, such as behavioral biometrics, to keep a one step ahead of this threat. At BehavioSec, organizations use our in-depth behavioral biometrics technology to effectively detect synthetic identity fraud applications, in real time, before any damage is done. If a synthetic ID is used to successfully open an account (credit cards, personal loans, etc.), the risk is significant for an organization because the intention of the fraudster is to access these funds and not not pay them back. BehavioSec mitigates this risk by analyzing and identifying behaviors consistent with synthetic identity fraud during the application process. Specifically, BehavioSec analyzes how a user physically interacts with a mobile device or desktop computer, such as a user’s familiarity with entering PII (name, address, SSN, DOB, email, phone, etc. .). A real user typically enters their PIIs which correspond to data familiarity and long-term memory behaviors. However, a fraudster’s behavior usually indicates that he is unfamiliar with the data entered and is using short-term memory.
Source: BehavioSec customer
We also detect other high-risk behavior such as PII copy-and-paste, where a fraudster works from a list of synthetic IDs to open multiple accounts. Additionally, fraudsters may demonstrate advanced knowledge of the application process and navigate pages very differently from a real user, such as using advanced key combinations, or we may see BOTs being used to automate and extend their attacks. .
Source: BehavioSec R&D
BehavioSec also helps improve the onboarding experience, reduce friction for genuine users, and reduce false positives/manual reviews for anti-fraud operations teams by identifying genuine behaviors. BehavioSec passively collects all of this information, without any additional steps for the user, and provides organizations with highly accurate scores and risk factors to make informed, real-time decisions on how to proceed with the session or application.
BehavioSec is trusted by the largest financial institutions and Fortune 100 companies around the world, where we protect over 200 million users and 30 billion transactions on an annual basis. BehavioSec customers have experienced tremendous success with our new account fraud solution, which detects synthetic identity fraud as well as other types of new account fraud such as identity theft and bot/bot attacks. automation. Our customers have experienced more than 96% accuracy in detecting fraud on new accounts while reducing false positives over 80%. If you want to know more, contact me at [email protected], check out my youtube lecture on synthetic identity fraudor visit our website at www.behaviosec.com.
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*** This is a syndicated blog from the Security Bloggers Network of BehaviorSec written by Chris Ralis. Read the original post at: https://www.behaviosec.com/la-menace-croissant-de-fraude-id-synthétique-et-comment-behavioral-biometrics-enables-organizations-to-stop-it-before-the-damage-is- ended/