We are hearing from large and small banks, credit unions and financial services firms that there’s a massive spike in fraud of all kinds, with one bank reporting catching 17 fraudsters in-branch last month, compared to an average of 2 per month earlier this year. These firms have been taken by surprise by this spike and it leaves them rushing into the anti-fraud market looking for solutions.
Banks, in particular, for years have had wide-ranging anti-fraud technologies in place. Most firms expect a level of fraud, but recent activity is reaching an enlarged level due to the recent dramatic surge in fraudster activities mainly due to the use AI.
Our team members report that SIF fraud incidents have increased significantly both year over year and month-to-month over the last quarter. We see this surge across credit card fraud, new account openings, various loans and especially in fintech applications. These incidents of fraud are being driven by AI wherein any given bank will see minor variations in personal private information (PII) which originates on the Dark Web. It is clear that the incumbent fraud-fighting technologies aren’t working under these circumstances. Also equally clear, fraud attempts will continue to increase as fraudster algorithms learn more and assorted AI hacks and tools continue to propagate.
Leveraging A Secure Digital Fraud Collaboration Platform
While there’s no single fraud solution works for all businesses, a new approach that works as an overlay to these solutions will work very effectively.
FiVerity has a Collaborative Identity Intelligence platform that allows banks, credit unions and financial services firms share double-encrypted PPI that is deliberately obscured. This means that the fraud information can be shared and fraud analysts and others can collaborate together to defeat the burgeoning tide of fraudsters.
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