In California, an identity thief was recently sentenced to five years in prison for committing what appears to be classic new account fraud. The thief reportedly used a victim’s identity to open a mailbox at a shipping store in Modesto, which he often used to have fraudulently issued credit cards and other financial and identity information mailed.
Typically, new account fraud refers to financial identity theft in which the victim’s personally identifying information ¾ generally a Social Security number ¾ is used to open new accounts on the strength of the victim’s name and good credit standing, which are then used to obtain products and services.
Since a thief typically provides an alternate mailing address, such as the shipping store mailbox used in this particular case, the victim never receives the bills accumulating in his or her name, and may remain entirely unaware of the accounts’ existence until the debts have gone unpaid long enough to prompt creditors to track down the victim.
This thief used victims’ information to create fake drivers licenses with his photo, which helped make the scam stick when he was asked for ID when using fraudulently obtained credit cards.
There are technologies that help credit issuers detect and stop new account fraud by providing real-time intelligence on the device being used to apply for online credit. This technology, called device reputation by iovation Inc., not only alerts businesses when velocity thresholds have been met, it also exposes whether financial fraud, identity theft and other frauds have attempted by the device or associated computers.
Credit issuers can set up and customize their own unique business rules, and iovation analyze each application and then return a recommendation to allow, deny, or review response for the transaction, along with an explanation of the factors involved.
By identifying new account fraud in real time, credit issuers can save millions of dollars in fraud losses annually. In one case, a Fortune 100 company used iovation to identify 43,000 fraudulent credit applications and save themselves $8 million in fraud loss over two years.
Robert Siciliano, personal security and identity theft expert contributor to iovation, discusses identity theft in front of the National Speakers Association. (Disclosures)
About the Author
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.
- Bought a Car Recently? Watch Your Identity Information
Over the past 15 years, we have watched hackers’ evolution from “phreaking” phone systems, to hacking government agencies like NASA, and eventually creating viruses that take down networks. In the beginning, their primary motivations were fun, fame, and amusement. Over the past ten years, the game changed dramatically, from fun and fame to financial gain.
- 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
- Florida Retirees Frequent Identity Theft Targets
A lot of Floridians are retirees who spend their days around the pool or at the beach. The warmer weather attacks both golden agers and unfortunately identity thieves. Criminals know that retirees have money in the bank, retirement accounts and credit cards with high limits.
TechNewsDaily reports, “On a per capita basis, 361 Floridians out of
- Javelin Study Shows Increased Credit Card Fraud Risk
Consumers, businesses, retailers, and even the media are becoming numb to news about data breaches. Not a week goes by when we don’t hear of another major breach affecting thousands or even millions of customer accounts.
Criminal hackers are getting smarter and savvier all the time, and they often have better technology than the banks and
- Firm Documents Increase In Holiday Cyber Fraud
iovation is the leader in device reputation technology. They work to prevent all types of fraud and abuse on the Internet, including account takeovers, which occurs when your existing bank or credit card accounts are infiltrated and money is siphoned out. iovation also helps prevent new account fraud, which refers to financial identity theft in
Leave a Comment
You must be logged in to post a comment.