Fraudulent credit card applications are the most lucrative form of credit card fraud. Identity thieves love credit cards because they are the easiest accounts to open, and they allow thieves to quickly turn data into cash. Meanwhile, consumers don’t find out that credit cards have been opened in their names until they are denied credit or bill collectors start calling.
Identity thieves use any number of tricks to fool banks, retailers, and creditors into approving their online credit applications, extending credit that leaves the creditor on the line for losses.
It doesn’t need to be this way.
Instead of simply verifying the identification provided by fraudulent applicants, newer technologies allow creditors to verify the reputation of the computer or smartphone being used to submit the application. By instantly evaluating a device’s history for criminal activity, creditors can prevent fraudulent transactions.
“In addition to telling businesses that a single device has been involved in fraud, iovation can also determine if that device is associated with bad activity through its associations,” said, Jon Karl, VP of Corporate Development for iovation. “Beyond fingerprinting and reputation, we provide our clients with early warnings about devices visiting their website in real-time, based on the behavior of devices and accounts associated with that device.”
Device fingerprinting and device reputation analysis help identify bad guys during the application process, allowing creditors to avoid more expensive solutions.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- Fraudulent Credit Applications Starts with the Device
When Jim Smith opens a credit card account, he doesn’t have to pay the bill. That’s because Jim Smith is committing new account fraud by using Fred Jones’s name and Social Security number. All Jim Smith needs is some basic information about Fred Jones, much of which is available in the phonebook, in his trash, in
- 67% of Companies Fail Credit Card Security Compliance
All merchants who accept credit cards are now subject to strict Payment Card Industry standards, rules, and regulations, which require a level of security that took about five years to finally implement. PCI exists to increase credit card security and, among other goals, to stave off government intervention. While significant effort has been made to improve
- What is New Account Fraud?
As long as identity thieves continue to breach databases and steal Social Security numbers, new account fraud will plague the public. New account fraud refers to financial identity theft in which the victim’s personal identifying information and good credit standing are used to create new accounts, which are then used to obtain products and services. Stolen
- Card Not Present Fraud Burdens eTailers
More than 90% of online purchases are made with cards, whether they are credit, debit, or gift cards. A virtual payment that takes place online or over the phone, without physical inspection of the card, is considered a “card not present” or CNP transaction. In a CNP transaction, it is not possible to examine
- Identity Theft Rings Focus On Loans and Credit Cards
Identity theft rings are in every state, victimizing approximately 10 million people a year. In Wycoff NJ, 11 men and women were arrested on charges of stealing identities to open credit cards in an alleged scheme that is believed to have defrauded more than 70 victims. Patch reports: “Credit cards were opened in the victims’ names, and
Leave a Comment
You must be logged in to post a comment.