According to a 2019 study released by Javelin Strategy, losses to New Account Fraud* increased from $3 billion to $3.4 billion between 2017 and 2018. The most common targets of new account fraud are: mortgages, student loans, car loans, and credit cards.
*"New Account Fraud" occurs when fraudsters open new accounts under victims' names; learn more about New Account Fraud here.
Fraud is a problem that costs more than $221 billion worldwide. The retail credit industry, which includes any business that offers credit to their customers, such as auto dealers, casinos and department stores, must utilize credit fraud prevention and react quickly to new threats as criminals continue to become more creative and efficient in their use of digital technology to commit fraud in an effort to secure an unfair or unlawful gain.
According to research firm Javelin, between 2014 and 2015, new account fraud more than doubled - with an increase of 113% - thanks to the implementation of EMV. New account fraud currently accounts for 20% of all fraud losses.
- 2016 Identity Fraud: Fraud Hits an Inflection Point -
Because finance companies issue credit, they must comply with complex regulatory requirements to validate with whom they conduct such credit transactions by immediately verifying the authenticity of the ID being presented. Examples of regulations include the Fair Credit Act, the “Red Flag Rule”, mandates associated with the Free and Accurate Credit Trade Act, and the Customer Identification Program provisions of the Bank Secrecy Act. These combined legislative directives stipulate that issuers of credit must proactively involve themselves in the fight against identity theft by creating procedures, documented with step–by–step instructions, for how to validate ID documents of any individual applying for and being issued credit, and to maintain records.
FraudFighter enables credit departments to immediately verify the authenticity of identification to stop crime before it can occur with a quality multi–layer credit fraud prevention program. FraudFighter, a division of UVeritech, recommends and implements proven solutions designed to prevent fraud related theft with easy to use, inexpensive and reliable protection controls. FraudFighter quickly eliminates theft related to credit fraud and acts as a visual deterrent to stop fraud at a cost under $100.