5 Reasons Why It's Getting Difficult To Catch Identity Fraud

According to a new AARP-backed report, fraud cases involving the theft and misuse of personal identity information accounted for about $52 billion in losses in 2021 alone. Not only have fraudsters not slowed down, but given the identity theft examples, it appears they are getting better at what they do. Unfortunately, catching identity fraud is getting more difficult by the day.

Fraudsters Continue to Evolve

The problem with technological innovation is that they work both ways. If there is one thing we can be sure about, it's that fraudsters are not stupid. In recent years, they seem to have become faster at adopting new technology, making catching identity fraud difficult. Meaning, that each time new technology gets released, they can leverage even more advanced techniques of trapping their victims, which, as you might imagine, improves their chances of success.

Cybercriminals can now take advantage of highly advanced vectors both offline and online. From iterating and testing new hacks and systems to recruiting more advanced money mules, it's clear that they are every bit as determined at winning as organizations are at putting up effective defense strategies. With each day, fraudsters keep jumping at new opportunities and broadening the scope of their attacks.

There is a Network of Fraudsters

We all know that there is strength in numbers. Well, fraudsters know that too. Recent reports have shown that fraud is far from a solo activity. Attackers are forming teams and working together to undertake broader scams that make catching identity fraud near impossible. These teams can also exchange plundered information. All these operations occur on the dark web, which is the shady side of the internet.

Furthermore, with illegal marketplaces on the internet, there's an entire world where criminals are heroes. Unscrupulous individuals use these illegal marketplaces to share and sell stolen information. Studies show that they net billions yearly from doing so. Some sources have discovered that internet criminals can collectively pull more than a trillion dollars annually from malicious exploits.

Unfortunately, criminals don't seem to run out of breached data to plunder and profit off. Since 2010, there have been enough hacks and breaches to compromise no less than 38 billion records. This information can easily be put to malicious use when it falls into the wrong hands. As you might imagine, if criminals are sharing information, they most definitely are sharing more effective ways of getting away unnoticed, which is why they are becoming harder and harder to catch.

Fraud Comes in Many Forms

Fraudsters employ a variety of methods to con unsuspecting people. You can think of it as having categories.

Easy Fraud

With little effort, most experts can see coming from a mile away. Fraudsters who use easy methods are often caught effortlessly due to formatting errors and incorrect details on falsified documents. Unfortunately, not many fraudsters work with way because they know most people have figured out how to report identity theft to the police and expose the fraudsters.

Medium Fraud

Fraud schemes that fall into this category are difficult to pick up on. In some instances, minor details can be amiss. However, an untrained eye can fall for these tricks as it can be difficult to distinguish between forgeries in this category and the real thing.

Hard Fraud

In this category, you find fraudsters that pull out all the stops and ensure that they deliver the very best. Advanced fraudsters use exceedingly detailed document duplication techniques. The documents they create can even have functional security features and more. A forgery in this category is near impossible to identify if you don't have specialized tools.

The main problem with fraudsters is their growing ability to use the above methods in their favor. For instance, instead of using complex fraud techniques, a fraudster can increase their efforts to reach as many individuals as possible. Easy fraud may not work on some people, but it works on others, so fraudsters will still have their way. On the other hand, some fraudsters will use very sophisticated techniques to target high-profile users, making it challenging to catch fraudsters.

Sophisticated Fraud Schemes are Becoming Increasingly Common

As mentioned before, fraudsters work with technology daily. One of the main threats is the theft of users' credit card details. Unlike simple techniques that made catching identity fraud easier in the past, internet criminals have shifted their attention to more sophisticated methods. For instance, some are leveraging AI to make their attempt more successful.

Attackers are now using insidious new synthetic identity scams, where fake and accurate information are combined to create new identities to open new accounts. Such accounts and identities have been successfully used to apply for government benefits. These attacks are tough to detect and can have devastating effects on those affected.

Fraudsters Work 24/7 to Make Catching Identity Fraud Difficult

Professionals in cyber security work very hard to keep identity fraudsters out and ensure everyone knows how to report identity theft. Unfortunately, it seems that fraudsters work even harder. They continue to work tirelessly to discover flaws and loopholes in established systems. Fraudsters will invest a lot of time and resources in developing foolproof ways to exploit it. These ways are becoming stealthier by the day.

To make matters worse, attackers are constantly diversifying their targets. By shifting focus from certain types of businesses to others periodically, they become tough to predict. When a security solution counters a particular attack, fraudsters would have evolved already, making the security solution obsolete.

Scams are getting more sophisticated with each passing year. With the introduction of new and advanced online tools, criminals can now trick even the most secure systems. They can even answer security questions, so no one is safe without a robust security layer, so it's essential to put in place measures to protect yourself. Criminals are indeed clever, but a little forethought can go a long way in ensuring that your information and finances are secure. In this case, the best defense is a good offense regarding how to stop identity theft.

How BlueCheck can Help

BlueCheck's industry-leading identity verification infrastructure enables merchants to grow their businesses faster. As we serve a wide variety of industries, our solutions are custom-tailored to the unique needs of our customers, including PACT Act and eCommerce-compliant offerings.

Schedule a call today with a BlueCheck specialist to learn more about our Age & ID Verification solutions.

https://www.globenewswire.com/news-release/2022/03/29/2412099/0/en/Identity-Fraud-Losses-Total-52-Billion-in-2021-Impacting-42-Million-U-S-Adults.html

https://cybersecurityventures.com/hackerpocalypse-cybercrime-report-2016/