AU10TIX Warns against Insufficient ID Authentication Practices That Contribute to the Sharp Rise in Identity Fraud in Financial Services

Recent study reveals that 46% of financial fraud attempts involve identity theft – almost double the rate (27%) of cases detected in 2012! AU10TIX warns against manual ID examination and data checking practices that are inconsistent and error-prone, especially in online customer acquisition and service channels.

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Remote ID authentication requires adequate technology

The Customer-Not-Present (CNP) – Document-Not-Present (DNP) situation is drawing fraudsters, after all, so the feeling is, if caught trying, who can find them?

Nicosia, Cyprus (PRWEB) November 23, 2013

Identity theft has become a "significant and rising threat", accounting for as much as 46%(!) of all fraud attempts detected in financial services in 2013. This rate is almost double the one detected at the previous year (27%)!

A recently published Experian study analyzed the application traffic of the first half of 2013, pointing at the most fraud-exposed services:

  • Mortgage fraud - 31 out of every 10,000 applications were detected as fraudulent (Down from 37 in the same period last year).
  • Credit card fraud - 25 out of every 10,000 applications were detected as fraudulent (Up from 14 in the same period last year).
  • Motor finance fraud - 21 in every 10,000 applications were detected as fraudulent (Up from 17 in the same period last year).
  • Current account fraud - 20 in every 10,000 applications were detected as fraudulent (Down from 44 in the same period last year).
  • Savings account fraud - 17 of every 10,000 applications were detected as fraudulent (Up from 13 in the same period last year).
  • Insurance application fraud - 14 in every 10,000 applications were detected as fraudulent (Up from 6 in the same period last year).
Source: http://www.expressandstar.com/business/uk-money/2013/11/20/identity-theft-a-rising-threat/

According to AU10TIX, the accelerating rise in fraud attempts (and this study refers only to those detected) is fueled not just by economic hardship but also by the relative ease of carrying out identity fraud – especially in online and mobile channels. According to Ofer Friedman, VP Marketing of AU10TIX: “Obtaining personal data online is notoriously easy, and manipulating ID document images can be done with widely available and even free software. In the online space, where application volumes are significant and the range of ID documents that can be submitted is wide, that’s where more errors occur. The Customer-Not-Present (CNP) – Document-Not-Present (DNP) situation is drawing fraudsters, after all, so the feeling is, if caught trying, who can find them?”.

Luckily, technology solutions that help automate ID authentication and content extraction for customer screening are already making headway in the online space as well. Solutions such as the AU10TIX BOS platform can help sort out which ID document images coming in are relevant and workable, carry out relevant authentication and validation checks, and extract printed and encoded content.
“With such solutions in place”, says Ron Atzmon, Managing Director of AU10TIX: “service providers can handle larger volumes of applications faster, reduce human error, and focus back-office work on borderline or suspicious cases only. That is a game changer I terms of operating efficiency today. That, pretty soon, will be a must for staying competitive and maximizing conversion rates”.

“It is not just our business”, says Ron Atzmon: “It is also our moral, professional obligation to warn service providers in regulated industries against the pitfalls of entirely manual customer screening and onboarding practices. 2014 will most likely not see a decrease in ID fraud, but vice-versa. But 2014 will most likely see more fierce competition. ID authentication and processing technology is becoming less of an option and more of a must”.

About AU10TIX
AU10TIX Limited, a fully owned subsidiary of ICTS International N.V, deals with the authentication and digitization of identifying documents including Passports, identity cards, driving licenses and other complementary identifying documents. The company specializes in implementing hardware & software based applications used for scanning, identifying, content retrieval, authentication and validation of identifying documents. AU10TIX is a pioneer of all-channel (front-end and online) ID authentication and processing solutions. The company's products drastically reduce identifying document-based fraud, reducing the costs associated with client processing and enabling effective regulatory compliance, while making the sales and support operations speedier and considerably more efficient.
For more information, visit http://www.au10tix.com

About ICTS International N.V.
ICTS specializes in the development and implementation of innovative security concepts and solutions designed to meet the needs of a variety of industries, mainly aviation transportation, border control and sensitive facilities. ICTS International benefits from over two decades of expertise and international operational experience in transportation security, with a particular emphasis on high-risk environments, passenger processing transactions and the integration of security services to provide a comprehensive security solution. It also offers a wide variety of customized training programs, tailored procedures and a wide range of security consulting services. The company has developed and implemented unique technological solutions, based on its comprehensive approach to security, designed to enhance the level of security while accelerating the security check process.
For more information, visit http://www.icts-int.com

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company’s business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company’s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company’s expectations or future events.

Contact:

AU10TIX
Ofer Friedman, Director of Marketing
Email: ofer(dot)friedman(at)au10tix(dot)com
Tel.: +972-50-4 71 71 50

ICTS International NV
Alon Raich
Email: mail(at)ictsinternational(dot)com
Tel.: + 00-972-974-47770


Contact

  • Ofer Friedman
    AU10TIX Limited
    +972 504717150
    Email