Security News > 2022 > June > Evolving online habits have paved the way for fraud. What can we do about it?
Pre-pandemic, most online fraud was committed by individuals or small groups and were straightforward attempts to access individual's data or business accounts or were applicant-level identity fraud.
It's rarely one-and-done with fraud rings as they thrive like any other business by creating repeatable solutions and seeking out ideal "Customers." Once a fraud ring identifies a weakness in a technology, outdated legacy fraud detection stacks, or poor process and procedures in place, they'll continue to commit fraud until the vulnerability is closed.
With legacy fraud stacks focused on post-submit data, these fraud rings are typically not identified until after the crime has already been committed.
PII-based fraud detection technology is virtually useless to prevent synthetic identities using stolen PII. The promise of machine learning hasn't come to fruition as most current technology on the market can't be trained to detect synthetic digital identity fraud models before the fact.
The problem with even the most sophisticated fraud detection stacks is that using PII to confirm and verify identity still requires the user to submit their data before it can detect fraud.
The fraud prevention and identity verification solutions we have been using are no match for the new vulnerabilities created, the volume of compromised PII, or the sophistication and tenacity of organized fraud rings.