Data is king in today’s digital world. It’s the basis of computer operation, the internet, and the digital infrastructure we use today. In the age of digital transactions and e-commerce, businesses face a growing risk of fraud and identity theft. Fraudulent consumers use advanced techniques to dupe companies into accepting them as customers, giving away confidential information, or making unauthorized transactions or purchases. According to Aite Group, losses from synthetic identity fraud are expected to exceed $2.42B in 2023. These rising levels of fraud pose a severe threat to a company’s reputation, credibility, and financial stability.
However, companies can leverage data to combat these fraudsters. With advanced analytics and integrated machine learning, businesses can protect themselves from malicious activities by verifying someone is who they claim to be. Combating fraud is a process that requires the intelligence that data analysis can provide. Today, the insights gained through examination of data points are the most important aspect of fighting fraudsters and fakes, particularly with identity data. Ensuring the accuracy of your data, regardless of the format in which it’s stored, really does matter when it comes to protecting your business.
The Role of Data in Preventing and Fighting Fraud
Online fraud and identity theft have become more common than ever before. As a result, financial institutions, as well as individuals, need to continually improve their digital fraud security programs.
Data is not only useful in creating product reports and informing essential business decisions, but it’s also critical for fraud detection and prevention. Accurate data is essential for identifying fraudulent activities and verifying the authenticity of transactions. Third-party vendors offer another source for businesses to validate the accuracy of their data. Moreover, data can help you effectively monitor an individual’s personal information.
Incorrect data analysis can easily become the basis for false positives with identity verification and fraud detection. On the other hand, correct and effective data analysis techniques are often the formula for catching sophisticated fraudsters. Firms with enough experience in the industry recognize the risk that fraudsters pose – working with the right data partner allows them to stay ahead of fraud and identity thieves, particularly online.
Fraud and identity theft protection is no doubt one of the most essential aspects of a company’s reputation and online presence. Tech companies have created hundreds of algorithms to pick up possible fraud. Data analysis tools, such as machine learning, artificial intelligence, and computer vision, can help companies identify suspicious patterns and anomalies. Still, these tools must be reviewed and updated continually to stay ahead of new fraud tactics. Working with the right data partner, companies can ensure that their data is accurate, up-to-date, and reliable to improve fraud detection and prevention.
There are several fraud prevention tools and strategies available in the market, ranging from basic identity verification to more advanced techniques such as those offered by Enformion. Companies should work with a partner who can tailor solutions to their specific needs and requirements. A robust IDV (Identity Verification) program can help companies detect and prevent fraud, protect their reputation and customer data, and comply with legal and regulatory requirements.
Prevention is better than cure. While companies can take remedial measures to mitigate the damage caused by fraudulent activities, it is always better to prevent them in the first place. Early detection countermeasures are the most cost-effective ways of combating fraud.
Some of the best ways companies can implement fraud countermeasures, and improve their processes and protocols include:
Choosing the right fraud prevention strategy for your company is essential to improving profitability, maintaining your reputation, and sticking to the right side of the law. Enformion provides identity verification and fraud mitigation solutions that offer advanced analytic insights and a comprehensive view of 240M+ consumers. With our suite of fraud prevention products and risk scores, you can discreetly and quickly detect and stop fraud. Contact us to learn more or request a customized demo.