San Francisco-based Javelin Strategy & Research’s 2019 Identity Fraud Study revealed 14.4 million scam victims in 2018; and complex and sophisticated fraud types at elevated levels, despite extensive anti-fraud measures adoption.
The report noted the recent shift to embedded chip cards is helping to stifle existing card fraud, which showed the steepest decline of any fraud type in 2018. While existing card fraud losses dropped from $8.1 billion in 2017 to $6.4 billion and the incidence fell from 5.47% to 4.40%, high-impact fraud types like account takeover and new-account fraud remain alarmingly common, demonstrating that fraudsters continue to find and compromise new targets.
“While the decrease in card fraud rates is undoubtedly good news for victims, fraudsters have turned their attention to opening and taking over accounts,” Al Pascual, Javelin strategy and research SVP, research director and head of fraud and security, said “As financial institutions and other organizations modernize account opening processes, it’s paramount that they incorporate tools like document scanning, behavioral risk assessments and digital identity. This will streamline digital applications while challenging fraudsters.”
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