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How Your Company is Vulnerable to Professional Fraud Attacks During the Holiday Season and Why Detection is Falling Short

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The era of amateur identity theft is over. Today's identity fraudsters are scaling up criminal activity, especially during the holiday season where the spike in online traffic creates many opportunities for them. How can you keep your company and customers safe from identity fraud? Read on to learn how.

Identity fraudsters are attacking the corporate world like never before. The real danger isn’t from lone wolf thieves but from organized crime. The days of a fraudster “photoshopping” (editing) a single ID are long gone. Modern criminals are much more efficient and sophisticated and for this reason you need a powerful technology to back you up.  

Today, professional fraudsters take a single ID card and make thousands of fake versions that will defeat most attempts at detection by humans. This is known as “synthetic fraud”. Synthetic fraud involves combining a stolen social security number (or other national IDs) with fake information – typically a false name, address, birth date and phone number in order to create a false identity.

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The Technological Challenge in Detecting Synthetic Fraud 

It takes a machine to beat a machine. The only way to beat synthetic fraud is through the deployment of continuously improving advanced technology.  

A group of people – say, a call center – cannot detect synthetic fraud. How can one person or even a group of people compare photo background, names and other data to thousands upon thousands of previously submitted IDs? 

  • Synthetic fraud is perpetrated by experienced criminal organizations. They know the limits of the human eye and how to pounce on the weaknesses of corporate ID verification systems. 
  • Synthetic fraud methods and techniques are always improving. How can one organization keep up with them? 

Couple these challenges with the seasonal challenges that come with the holiday season. During this time of year, banking, financial services, digital payment platforms, ecommerce sites, shared economy platforms and other B2C and B2B verticals are bombarded with demand from new and existing customers. The National Retail Federation expects holiday sales during November and December in the USA alone to reach between $843.4 billion and $859 billion in sales. These numbers are a huge potential for fraudsters, and companies need to make sure they are protected with their business and are protecting their customers at the same time. 

Identity Fraud is Skyrocketing While Detection is Falling Short 

When you add it all up, you realize that we are up against a “machine” that creates and distributes forged IDs day in, day out. Fraud and identity theft are skyrocketing, due in part to more people who are using digital applications and services. According to a 2020 study by the Aite Group, 47% of Americans experienced identity theft. The study further found that in 2020 fraud was responsible for $712 billion in damages – a staggering 47% year-over-year increase. 

Things are not improving in 2021. The non-profit Identity Theft Resource Center reports that data breach-related ID theft increased another 38% year-over-year in Q2 of 2021. 

Identity fraud numbers are going up at the same time while the level of sophistication is rising. The typical identity fraud detection solutions are designed to detect forgeries than can be seen – illogical details, inappropriate fonts, signs of putting a face image over an ID card, etc. Synthetic fraud goes way beyond these methods. 

Clearly, a new paradigm and new tools are needed to fight much more sophisticated synthetic fraud. 

How AU10TIX Helps Companies Deal with Synthetic Fraud 

AU10TIX built a solution called INSTINCT that stops synthetic fraud in its tracks. INSTINCT does everything that the human eye cannot do: 

  • Recognizes patterns – like when the same image is used on multiple IDs
  • Compares newly submitted IDs to previously submitted IDs 
  • Designed to look for production lines of fake IDs
  • AI-powered data platform aimed at detecting sophisticated ID forgeries that cannot be detected with single document level analysis
  • Examines anomalies at the traffic level 
  • Detects multiple variants of the same document
  • Uses variable combinations of image and content elements.

 fill out the below form for a 15 demo on INSTINCT’s capabilities, and we will get back to you promptly! 

Above all, INSTINCT performs its magic with zero human involvement and returns results in 8 seconds or less! 

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