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Want to learn why application fraud is on the rise? In this clip, I share insights into the three major drivers beyond the tremendous YoY growth rates we are seeing across the industry.
With the North American chip card deployment, fraud has migrated to “paths of least resistance”. EMV has disrupted a $4 billion industry that seeks to find a new home in application fraud, card not present fraud, and more.
In the last year, FICO have observed an increasing number of brute force application fraud attacks – an identity-based threat vector. The increase in third-party fraud, also known as identity theft, is primarily driven by cyber breach events that compromise personally identifiable information (PII). In the US today, there is a new identity fraud victim every two seconds.
Another factor driving the meteoric rise of application fraud is the rapid digitization of our world and the consumer pressures for instantaneous decisions. The anonymity and facelessness of the online channel is particularly vulnerable as fraudsters capitalize on the anonymity and ease of access that online/digital channels provide to continuously target financial institutions.