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.