Identity theft and ATO issue – evaluating from a former fraudster’s view

Ai Editorial

9th May 2023

Identify theft can take place in many ways, could be a financial one, medical identity theft, tax-related, perpetrated via creation of a synthetic identity and so on.

Such kind of theft is about stealing personal, financial, or confidential private details with the aim of assuming another person’s identity. That’s why it’s vital to guard financial records, social security/ national identity and any other personal information.

Alexander Hall, a former fraudster, differentiated between the more familiar form of identity theft and synthetic identity theft, explained how the former is committed and what all is done in terms of credit report, information, freezing the credit profile etc.

Hall, who spoke at a webinar hosted by LSA today, shared how he came across gaps across touchpoints and systems within an organization, and chose to act while committing such type of fraud. He also mentioned that checkpoints for controlling account takeover (ATO) fraud need to be prepared more proactively as this sort of fraud continues to flourish.

The common ways in which ATOs in BNPL work – signing up for a new account with stolen credentials or a fraudster taking over existing BNPL accounts belonging to legitimate customers.

“Identify every user touchpoint, how we are transacting with our users – what sort of information are we collecting and seeking from our customers and how many checkpoints are there. Monitor trends and evaluate suspicious activity as organizations focus on bigger datasets. Third part – focus on automation and should support strategy, rather than dictating it. Fourth – be nimble for any payment method – say BNPL today or contactless tomorrow,” recommended Hall, who pointed out that fraudsters are equipped with certain information or tools and the objective should be to make it tough for them to make a breach with what they have got.

It must also be highlighted that the vulnerability of a consumer credit reporting bureau in the U. S. came to fore this year.

In this context, as also highlighted by Lisa de Vreede during the webinar, the only way to combat or keep pace with fraudsters is to be proactive. “Most important is – see what’s changing in an organization, the CX and look at vulnerable points,” she said. It could mean evaluating rule-based risk assessment and continuously looking at data.

“In the absence of a systematic approach – you can’t track your fraud strategy, also automate and be vigilant, be prepared to respond quickly,” concluded Hall.

By Ritesh Gupta, Ai Events

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