It’s difficult to imagine starting any business in 2022 without a digital presence. Whether you create an app for your members, process payments online, or email coupons to your subscriber list, nearly every company sees the web as a vital avenue to success.
Despite the ubiquity of the World Wide Web, many entrepreneurs and business leaders struggle to secure their digital operations against would-be fraudsters. But fraud is a booming industry, and the bad guys spend long hours identifying and exploiting vulnerable organizations.
Getting new account fraud detection right is critical to protecting your company. Learning from the mistakes of others is an excellent way to avoid the same missteps and secure growth for your team. Learn about these common mistakes entrepreneurs make when it comes to fraud detection.
Not Taking New Account Fraud Detection Seriously
To most people, fraud sounds like a petty crime with no real victim; there’s just nothing edgy about it. Fraud is boring, right? But for those who have fallen victim to a fraud ring or other bad actors, it’s anything but.
There’s a popular misconception that fraudsters work in the margins, siphoning off pennies in a way that does no actual harm. But in 2017, a fraud ring in New York stole $200 million in a credit card application scheme. That’s enough to put most companies out of business.
With more than 30,000 potential fraud rings operating worldwide and a 60% increase in digital fraud within financial services over the past three years, it’s a threat you simply can’t ignore. Entrepreneurs who underestimate the dangers do so at their own peril.
Relying on Outdated Systems
It used to be that the PII on a membership application was all your systems needed for thorough ID verification. But these days, if you’re authenticating new users based on post-submit data alone, you’re allowing fraudsters to take advantage of your organization.
The simple fact is that vast troves of compromised PII are available on the darknet, meaning fraudsters have everything they need to assume another person’s identity or create synthetic identities that can be difficult to detect. Because all that data is so widely available, PII-based fraud detection systems aren’t enough to fend off bad actors.
Missing Out on Groundbreaking Technology
While fraudsters are more capable than ever, too many business leaders have yet to take advantage of the tools that offer modern, enhanced fraud detection. Chief among these is behavioral intelligence software. When the bad guys use stolen PII to mask their identities, behavioral intelligence can see through the façade.
Advanced behavioral intelligence tools passively read the digital body language of site users. Specifically, these tools watch as users interact with your site forms, looking for indications that a given user is unfamiliar with the PII they’re inputting. Suppose a user retypes their name three different ways or can’t seem to remember their own home address. In that case, behavioral intelligence software flags them as “risky,” allowing your step-up verification measures to intervene rapidly.
About NeuroID
Expanding your user base in the face of online threats can be intimidating, but you can’t afford to be deterred by bad actors. NeuroID offers groundbreaking technology and innovative tools. With NeuroID, you can secure growth in the digital space without falling victim to fraudsters. Using the power of behavioral analytics, NeuroID reads digital body language to spot signs of fraud. ID Crowd Alert™ from NeuroID monitors digital identity at scale. It visualizes crowd-level behavior and provides alerts about fraud ring activity, bot attacks, and more. For rapid, accurate identity orchestration, NeuroID offers ID Orchestrator™. With NeuroID, you can navigate the digital identity crisis and stop would-be fraudsters at the point of attack.
Enhance your organization’s fraud detection with NeuroID at https://www.neuro-id.com/
Original Source: https://bit.ly/3WLEHTt
