A fraud prevention
plan is the easiest way to detect suspicious activity and high-risk
situations. Detecting and preventing identity theft is a lot easier and less
costly than you may think when you have a clear understanding of what fraud
prevention solutions have to offer. You may already have several procedures in
place to detect fraud but there are also new technologies you can easily deploy
to cover areas you still need to address. Frequently enhancing your strategy is
crucial, especially if you are working in the following industries: banking,
credit unions, mortgage brokering, auto dealing, debt collection, credit
issuing, utilities, telecommunications, or healthcare.
As a business, you need to identify the potential risk
factors you may face in the future. This could be anything from account
establishment to where you store your data. Its very important to be able to
verify the identity of a user and know they are who they say they are before
account establishment, whether the account is being opened in person or online.
Identity verification solutions that utilize challenging questions during this
process are a good tactic to keep fraudsters out. Out-of-wallet
questions based on personal knowledge and information are hard for
criminals to answer. Using information
matching, such as address and social security number, is also a good way to
A fraudster may be trying to infiltrate your system is the
user continuously fails to answer challenging questions about places they
have lived and people they know. You can also monitor withdrawals from a
savings or checking accounts or deposits a lot of money to a new accounts and
high dollar credit card charges on the same day in different cities to
determine fraudulent activity. And of course, a big red flag would be if a SSN
belongs to a deceased person.
The reality is that fraudsters change their game quickly and
swiftly forcing systems to be monitored and updated on a regular basis. Its
important to be proactive and pay attention to the state of other industries as
well as your own. There is no better way to protect your data and customers
than by implementing strong fraud prevention solutions.
[Contributed by EVS Marketing]