Equifax Fraud Services

The Resurgence of New Account Fraud

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Back to the Future: The Resurgence of New-Account Fraud Effective Fraud Mitigation Solutions to Help Combat the Next Generation of New-Account Fraud Fraud detection best practices contributed to a decline in the amount stolen by fraudsters and the total number of victims in 2014. But enhanced defenses against a favorite target – point of sale – will compel fraudsters to refocus on other opportunities, including new accounts. Financial institutions are making progress in their efforts to mitigate fraud. Between 2012 and 2014, the total amount stolen by fraudsters dropped from $21 billion to $16 billion. And the number of victims decreased from 13.1 million in 2013 to 12.7 million in the following year. 1 The slow but steady transition to EMV* card transactions is contributing to the decrease in total fraud losses and the number of victims. Credit and debit cards made more secure with chip, tokenization and encryption technology make it significantly more difficult for fraudsters to engage in point-of-sale (POS) tactics in particular. Higher-security cards make counterfeiting more difficult, if not impossible, noted Javelin Strategy & Research. Encrypted and tokenized information make data pulled from compromised terminals useless for future POS transactions. *EMV (Eurocard, MasterCard and Visa) is a global standard for credit cards equipped with computer chips to authenticate transactions.

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