IDology 2014 Fraud Report
Š IDology Inc.
IDology 2014 Fraud Report
IDology Research
Survey Result Highlights • Increase in suspected fraud attempts from 2013 to 2014 • Website applications continue to bear the brunt of attempted fraud • Credit, debit and prepaid card fraud remains a major concern • Organizations are most prepared to detect & prevent credit, debit and prepaid card fraud, however confidence in preventing other types of fraud declines • Customer awareness of fraud increases while fraudsters continue to shift tactics • Small dollar fraud prevails • South Florida, Georgia & NY/NJ regions see incidences of suspected fraud
Fraud Trend: “Reuse of compromised accounts from merchant breaches for money laundering. Attempted use of credentials acquired from a merchant or website breaches. Increased phishing.” ~ Chief Compliance Officer, Financial Services Organization
• Ease of implementation, ability to meet compliance requirements, reduction of manual review, higher locate rates and increased customer acquisition top IDology customer benefits, among others
About the Research
The IDology 2014 Fraud Survey polled senior executives from IDology’s customer base. IDology customers come from a variety of industries – from banking and other financial services, to healthcare, retail, telecommunications, energy & utilities as well as other consumer and business services. Sizes of the companies range from large enterprise organizations to small business as well as non-profit and educational institutions. Of those who responded, 20% are senior C-level contacts, 23% are VP/Director level contacts and 52% are managers whose daily experiences revolve around ensuring a positive customer experience while still mitigating fraud. Additionally, 5% of respondents were Analyst-level contacts. This report brings together these survey results with the experience and expertise of IDology, a leading provider of real-time and integrated technology and fraud prevention solutions that verify an individual’s identity and age for organizations doing business in a customer-not-present environment.
© 2014 IDology Inc.
www.IDology.com
IDology 2014 Fraud Report
IDology Research
Introduction We are very excited to be releasing our 2nd annual fraud report. We hope you find this information valuable and thank you for your interest in our research. In this ever-evolving fraud landscape, how do organizations control the increasing levels of fraud while still growing their business? That is a question that businesses and teams of all sizes must ask themselves every day. In our 2013 fraud report, 66% of surveyed organizations responded that they had experienced suspected fraud attempts in the last 12 months. This year, that number increased significantly to 87%. There is no question. Fraud continues to expand and when it comes to verifying your customers - a sophisticated compliance and fraud platform is required. Fraudsters are constantly finding new ways to access products and services using stolen identities. However, the tighter the fraud prevention is to protect your business– the more difficult it can be for consumers – the majority of which are legitimate. Therefore, organizations must balance security with convenience. Ensuring that the good customers gain access and deterring the fraud. This report presents the collective input of some of the world’s most talented and diligent anti-fraud practitioners who have direct experience with this delicate security vs. convenience balance. I hope this research provides some useful insights and helps you identify emerging threats and opportunities for your business.
John Dancu CEO, IDology, Inc. About IDology: At IDology, we maintain a results-driven, entrepreneurial approach to identity verification and fraud prevention. With our solution, you gain multiple opportunities to approve a customer which increases approval rates and allows the legitimate customers easy access to your products or services. Good customers are passed and move forward without any friction - while those that require increased verification are escalated and approved...or not. Our solutions are built to help you to effectively acquire new customers and build your business.
© 2014 IDology Inc. www.IDology.com