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Fraud pest control: Plug the holes in your data and identity resolution

Author: Laura Ballam


Fraudsters are like rats in the sewers, always finding new ways to sneak around and take advantage of any opportunity they can find. And what’s their favorite spot? The holes in your data and identity resolution. As a fraud professional, it’s your duty to constantly be on the lookout for these elusive pests and ensure your systems don’t have any gaps. We've compiled some tips and tricks to help you avoid the common pitfalls that fraudsters use to slip through the cracks.

Sniff out fake accounts

One of the most common ways fraudsters get through the holes in your data is by creating fake accounts. They use these accounts to infiltrate your system and gain access to sensitive information. To avoid this, you need to be vigilant in verifying the identity of new users. Using a multi-layered approach to your authentication process is the best way to catch new account fraud in the act. Analyze IP addresses, use multi-factor authentication, and layer on behavioral biometrics to successfully identify red flags in the user's behavior.

Keep your data clean and up-to-date

Data is the bread and butter of any fraud prevention system, but it's only useful if it's up-to-date. Fraudsters can exploit outdated data, like old addresses or phone numbers, to trick systems into approving fraudulent transactions. So, be sure to regularly scrub your data, update your databases, and eliminate any inaccurate or incomplete information. Leveraging a first-party data capture solution makes this much easier by continually updating identity profiles and even triggering requests to customers to verify their info is still correct. This helps ensure your system has the most accurate and reliable data possible.

Check and double-check any red flags

The devil is in the details, and when it comes to fraud prevention, it's important to pay attention to any warning signs. Whether it's an unusual behavior or an odd location, these red flags are often the first sign of fraudulent activity. But be careful not to jump to conclusions too quickly - there may be legitimate reasons for these red flags. So, always double-check and verify the information before making any decisions. This is where behavioral biometrics dramatically enhance your fraud prevention efforts. While a transaction or activity may appear suspicious (or benign) on its own, when taken in context it can be revealed in an entirely different light.

Set your traps with automation and AI

Fraud prevention can be time-consuming and labor-intensive, but it's the price we pay for keeping our systems safe. Fortunately, automation and AI-powered solutions make the process much more efficient and effective. These technologies quickly analyze and identify fraudulent activity, allowing fraud professionals to focus their energy on more complicated cases that require human intervention. When leveraged with a real-time, first-party data capture solution it literally means the difference between stopping fraud before it happens, or trying to chase it after the fact.

Unleash your digital watchdog

Fraudsters are rarely solo acts - in many cases, such as scams, ATO, and identity theft, there are multiple criminals working together in an organized group. Enlisting the fraud tracing power of a first-party data capture solution for fraud prevention enables you to follow the fraudster right back to their nest. When a compromised identity is found, you can trace that to mule accounts and beyond to uncover additional compromised accounts and identities. Then, set triggers to alert your fraud systems and teams when any of those fake accounts are used across your business. 

Keep an eye on emerging trends and new threats

Fraudsters are always dreaming up new ways to slip through the cracks, so it's important to stay up-to-date on emerging trends and new threats. Attend industry conferences, read up on the latest research, and collaborate with other fraud professionals to stay ahead of the game. By staying informed and aware, you'll be better equipped to prevent fraudsters from exploiting the holes in your data and identity resolution.

It's essential to choose a first-party fraud prevention solution that captures (and delivers) ALL the data. This difference is key, as it enables you to detect and identify new forms of fraud even before you’re aware of them. The alternative is executing a lengthy model-building process that will likely be out of date by the time it’s ready – with multiple new forms of fraud already in place. We'll vote for the former!

A fraud professional’s job is never done. Fraudsters will continue to exploit the holes in your systems, but with vigilance, attention to detail, and a willingness to embrace new technologies and strategies, you can stay a step ahead. By following these tips and tricks, you'll be better equipped to prevent fraudsters from slipping through the cracks in your data and identity resolution. So, stay alert, stay informed, and keep up the fight against fraud.

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