EXPERT FORECAST : BANKING AND FINANCE

In 2022 identity fraud skyrocketed – especially during the festive period . Eduardo Castro , Managing Director , Identity and Fraud at Experian , explores actions businesses can take to safeguard customers .

Compounding the problem further this year are challenging economic conditions which tend to also increase fraudulent activity . Indeed , Experian ’ s identity and fraud technology prevented more than £ 1.8 billion of fraudulent transactions in 2021 , showing the potential financial cost fraud poses to businesses .

So , what steps can you take to minimise the risk of falling victim to fraud while also protecting your customers ?

Avoid reputational and financial hits

Third-party fraud occurs when a person ’ s identity or personal details are used by fraudsters without consent to access credit . It poses an enormous cost to businesses , who have a responsibility to ensure their customers ’ details are genuine , investigate the fraudulent occurrence and potentially in some cases , refund the defrauded customer . Nearly 70 % of all identity fraud in the UK is classified as third-party fraud according to Experian data .

Not only does identity theft have a cost implication , but a reputational risk too . Identity theft is the top security concern of UK consumers and customers that experience fraud may be discouraged from using that business service in the future . Not to mention the media attention that fraud cases can receive if they have been managed poorly Preventative measures are more successful than reacting after the fact . They protect the customer and businesses from the cost of fraud and any potential reputational damage .

Verify customer information

It is vital for businesses to confirm customers ’ information is legitimate and not a stolen identity . Identity checks and verification systems enable businesses to spot ID fraud by ensuring a customer is whom they say they are , stopping fraud in its tracks . Bolstering fraud defences helps to boost customer confidence , while also ensuring that passive and invisible checks don ’ t inconvenience genuine customers . www . intelligentfin . tech

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