Security & Fraud

The More Social You Are Online, The Higher The Likelihood Of Identity Theft

ID Analytics, a consumer risk management company, announced on Monday (Oct. 10) that, based on a new study, there is a direct correlation between a consumer’s level of online exposure and their risk of identity theft.

In a press release highlighting the study, dubbed “Online Privacy vs. Security,” the firm found consumers who qualify as having a high degree of online exposure are four times more likely to become victims of identity theft than the general population. A high degree of online exposure is defined by ID Analytics as routinely sharing personal information through multiple online channels.

“Consumers increasingly prioritize convenience over security and privacy, which will likely lead to rising amounts of fraud in the coming years. As criminals become increasingly well-armed with the insights they need to steal more identities, they will become even harder to catch,” said Dr. Stephen Coggeshall, chief analytics and science officer at ID Analytics, in the press release. “At ID Analytics, we are continuing to innovate and build more predictive versions of our technologies and methodologies and applying them to emerging fraud risks to help companies stay at least one step ahead of sophisticated fraudsters. In the last six months alone, we have seen promising results in tackling critical industry challenges, such as synthetic fraud and fraud rings, while exploring new concepts and developing models, which look past the identity to predict the intention of an applicant.”

According to the company, the most predictive variable in determining whether someone’s online exposure put them at higher risk for becoming an identity theft victim was the number of active social profiles identified. This suggests that consumers who limit their online exposure make it more difficult for fraudsters to access their personal information, ID Analytics said. To reduce the risk of identity fraud, consumers should be cautious with regard to what information they share and where they share it, the firm added in the press release.


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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