Upon hearing the term “digital fraud ring,” most business owners fall into one of two categories. For many, the fraud ring is a nebulous notion of ineffective, low-level criminals scamming grandparents out of a few bucks here and there. But business owners who have experienced an online fraud ring attack firsthand understand precisely how devastating these incidents can be.
Hopefully, you’re motivated to place yourself in a third category: that of the savvy business leader who takes digital threats seriously, keeps up with the latest new account fraud detection methods, and does what’s necessary to secure growth.
If you’re ready to learn about sophisticated fraud rings and what it takes to stop them, here’s everything you need to know about this genuine threat.
What Is a Fraud Ring?
A fraud ring is simply a group of cybercriminals working together to enact their chosen form of fraud. According to some estimates, over 30,000 potential fraud rings currently exist worldwide. Unlike lone fraudsters, the coordination and premeditation utilized by fraud rings make them capable of long-term attacks that can go undetected for years, causing untold damage to organizations across all industries.
While plenty of online bad actors might not be this dedicated, the truly threatening fraud rings are comprised of diligent operatives who treat their work as seriously as any salaried employee. They use the latest technology to their advantage and put in long hours to evolve their craft in the pursuit of even more lucrative schemes.
How Do Fraud Rings Strike?
Don’t fall into the trap of thinking that your industry is less likely to be targeted by a fraud ring than other industries. Fraud rings can strike across all sectors, from fintechs to top banks, Buy Now Pay Later companies, and even insuretechs. They search for complacent organizations and merchants, particularly those relying on outdated payment solutions or old PII-based new account fraud detection systems.
Before undertaking their devious work, fraud rings test digital defenses, looking for any gaps or deficiencies they can exploit. For example, if fraudsters encounter a detection system that analyzes only PII to perform ID verification, they can utilize their cache of compromised PII to either pose as a genuine consumer or create a synthetic identity to slip through undetected.
Once authenticated, fraud ring operatives can carry out a variety of short-term or long-term attacks. They can perpetrate layered fraud against several different merchants, commit chargeback fraud, sell fake gift cards, pay with stolen credit cards, and much more.
How Do I Protect My Business From Fraud Rings?
The short answer is: Equip your fraud detection systems with the latest tools. Leading new account fraud detection software uses behavioral intelligence to perform identity orchestration and monitor digital identity at scale. Choose tools that detect behavior indicative of fraud rings in real time to deliver early warnings. Those alerts should also include every associated user session ID.
It’s worth noting that sticking with outdated PII-based fraud detection systems is a surefire way to make yourself an attractive target to fraud rings. With so much compromised PII available on the darknet, you simply need more robust ID verification measures. The most successful fraud detection systems go beyond PII and use behavioral intelligence software that simultaneously reads the digital body language of all your site users.
After all, fraudsters can use stolen PII to lie about who they are, but they can’t hide their behavior as they interact with your site forms. Behavioral intelligence tools identify users who seem unfamiliar with their own PII and flag them in real time, enabling your step-up verification systems to intervene rapidly and stop fraud rings before they can gain entry.
About NeuroID
Securing growth in the digital space is critical for any modern organization, but you can’t reliably expand your user base and develop your platforms without robust fraud detection systems. For advanced tools powered by groundbreaking technology, turn to NeuroID. Instead of relying on compromised PII, NeuroID utilizes the strength of behavioral analytics to identify early warnings of fraud, allowing you to stop bad actors in their tracks. NeuroID passively reads a user’s digital body language as they interact with your site forms, alerting you to risky behavior and indicators of fraudulent activity. With this pre-submit data, NeuroID offers an effective solution to proactively detect fraud rings, synthetic identities, and more. Experience the NeuroID advantage for your organization today.
Protect your business from fraud rings with sophisticated solutions from NeuroID at https://www.neuro-id.com/
Original Source: https://bit.ly/3H26MBs
