The Evolution of New Account Fraud
According to a newly released white paper, commissioned by GIACT, and produced by Javelin Strategy & Research, new account fraud (NAF) is evolving. Fraudsters have piled into the digital channel and, with years of experience under their belts, they are diversifying their targets and tactics.
The white paper tracks $3.4 billion in NAF losses in 2018 – a $400 million increase from the year prior. According to Javelin, “fraudsters have found new and unique ways to bypass the biographical traps setup by organizations, rendering certain validation practices too weak to solely reply upon for protection.”
In addition highlighting the latest NAF tactics, the white paper also provides recommendations for protecting and preventing against NAF.
- Evolution and the migration of NAF to digital applications, lenders, mobile networks and others
- How NAF continues leverage more sophisticated identity fraud tactics, including the use of both synthetic identities and complete impersonations
- How mobile phone accounts are being used to perpetrate fraud as well as the growing concern around familiar fraud
- Consumer willingness to accept additional identity proofing