Before the advent of the internet, global electronic communications, and online databases, it was a simpler time for the world of fraud: mainly consisting of counterfeit money and documents signed with a forged signature. While these crimes caused inconvenience and loss, the extent of the damage was relatively limited in scope and financial loss compared to today.
In the previous post, we discussed what EMV and the fraud liability shift are as well as how it will affect businesses, especially small businesses. In this post, we will focus on helping you build a successful strategy that will protect your business from the upcoming fraud liability shift as well as discuss why this strategy will help protect your business from fraud.
Most people have some exposure to fraud deterrents in their daily lives. For the honest person, these deterrents are in place for protection and peace of mind. For the criminal, they are barriers he or she hopes to breach.
Young people who are under the drinking age have long looked to fake IDs to get around the law. While law enforcement has been fighting this risky behavior for decades, a new risk comes along with buying false identification- in the form of identity theft.
To combat the recent tidalwave of identity theft cases across the United States, the Internal Revenue Service is fighting back. Beyond implementing various new security measures and working with other government agencies to fight fraudulent filing, the IRS is now removing automatic extensions of W-2 forms. The current extension will remain in effect for another year, with the change going into effect in 2017.
With the increase of mobile commerce brings a parallel increase in fraudulent mobile transactions, according to a recent report from Kount. For months, mobile commerce transactions have been increasing at dramatic rates, in some cases even surpassing desktop e-commerce and brick-and-mortar purchases. Although in-store and online transactions may be better protected against fraud threats, many merchants are still catching up with fraud protection measures on the mobile front.
Fraud is big business. The Federal Trade Commission has estimated that 10.8 percent of U.S. adults experienced fraud in 2011, with 37.8 million separate incidents reported. The frauds in this FTC report, which only scratches the surface of all types of fraud, from consumer to corporate, included:
According to a new report, the majority of online fraud in the United States is coming from several cities across the country with high concentrations of data centers. These cities, which include Tampa, New York, Chicago, Atlanta, and LA among others, are seeing increased rates of fraudulent activity, especially across the Internet. The correlation between the number of data centers and the high level of fraud suggests that stolen identities may be being funneled via VPN servers and proxies.
In our tech-based society, smartphones, tablets, and other mobile devices are central to our daily lives. One can confidently assume that nearly every American has a mobile device or access to one, leading us to believe that mobile will be the next frontier when it comes to identity authentication.