Identity fraud has never been more rampant. Fraudsters are exploiting open source malware to scam consumers, while using deep fake imagery and bots to make identity fraud attacks more efficient. They’re exploiting a relatively new financial vehicle in crypto and a growing attack vector in the burgeoning Buy Now, Pay Later (BNPL) industry. Through it all, they’re amassing a wealth of breached consumer data, credit card authorized tradelines, and vintage email marketplaces to strengthen synthetic identities and share that information across the dark web.
All of these tools and targets are available to the “bad guys” in a new digital environment that has been hastened by the global pandemic, where “good guys” are having to catch up with identity theft protection for consumers as they move more of their financial lives online.
Fraud is at an Inflection Point in 2022
I’ve been developing technology solutions that mitigate fraud and identity scams for almost 35 years. With that background, I feel confident predicting that the fraud industry is at an inflection point. I believe 2022 will be the year that defines a clear winner between “good guys” or the “bad guys.” Unfortunately, the “bad guys” have a leg up in technology innovation.
Now more than ever, to stay ahead of the “bad guys” the “good guys” will have to continuously find identity theft vulnerabilities and subsequently deploy technologies to combat them, including making use of automation for identity verification and taking advantage of advanced machine learning models to trace emerging identity fraud patterns. The government and private industry, including financial institutions, will need to collaborate to share information on exploits and develop standards to instill consistency in technology innovation. And that’s just the beginning.
How to Win the Identity Fraud Battle
As we enter 2022, the digital landscape is ripe with new opportunities—and vulnerabilities. According to the FBI, since March 2020 there has been a 300% increase in reported cybercrimes. At Socure, we have seen first-hand how unemployment fraud has run rampant since the beginning of the pandemic. There are no signs of fraud decreasing in 2022. Instead, businesses face accelerating identity fraud prevention challenges.
Over the next two weeks, I’ll be posting a series of blogs with my thoughts on the five most game-changing fraud developments in 2022. I don’t have profound predictions: these developments have been building for some time, in numerous ways. But I will examine how the battle against the bad guys is evolving and how the good guys (like you) can fight back.
The writing is on the wall for 2022 to be a defining year in the fraud fight. The only way to win the battle is to come prepared. I’ve linked the full list of posts in this blog series below, or check out the full series in one read with the Six Predictions for Battling Fraud white paper (and get a free bonus prediction).
Full Series of Posts
Mike Cook is VP of Fraud Solutions Commercialization at Socure and works alongside Data Science, Product, Sales and the Fraud Investigation team to help ensure solution optimization across all the markets Socure serves. Mike has been an innovator in fraud, identity, and credit risk for almost 35 years and has created several patents for identity risk technologies.