Gear up. The 2019 holiday shopping season is upon us, and with it a sharp increase in online fraud. According to Arkose Labs, fraud increased by 30% in Q3 2019, a preliminary of what’s to come as criminals test stolen credentials to pave the way to successful scamming.
As the insurance industry continues to digitize, companies are facing new threats from cybercriminals looking to make a profit by stealing insurance benefits or entitlements. Insurance fraud adds up to $40 billion in losses per year, costing the average American family $400-$700 in increased premiums, the FBI reports.
The sharp increase makes it clear that traditional methods of insurance fraud prevention are no longer effective. Passwords and two-factor authentication are unable to stop criminals, who are submitting fraudulent applications by using stolen or synthetic identities, taking over legitimate accounts to make false claims, or changing payee information to divert insurance funds.
We now live in the age of cybercrime, and insurance companies need authentication and detection solutions that can spot and stop fraud in real-time.
Like any organization in the midst of digital transformation, corporate treasury departments are seeing a rise in cybercrime, including payment fraud, social engineering, and account takeover attacks.
Heading into the new year, everything from your washing machine to your mobile banking app will be a potential source of fraud risk. It’s the challenge of living and doing business in the age of digital transformation. As our day-to-day lives becomes more convenient through all that technology has to offer, fraud becomes simpler for cyber criminals.
There’s one thing we know for sure about digital transformation: Cybercrime is an inherent risk of offering services online. For insurers, the biggest threat is application fraud, also known as new account fraud (NAF), which leads to billions of dollars in losses every year.
Cybercriminals never stop improving their attack methods. Cross-channel fraud is one of their latest strategies, and it’s causing trouble for financial institutions and online merchants who are embracing the omnichannel payments revolution.