Our goal at Fairway Independent Mortgage is to consistently search the internet to locate relevant information for future homebuyers or those seeking some sort of mortgage financing. Our search landed us on this article and subsequent white paper, “The Changing Landscape of Identity Fraud.” In addition to providing a warning to the latest and greatest fraud tactics out there, this paper serves to provide a useful map of what can be done to protect yourself and your loved ones.
Original Post | National Mortgage News, May 15 edition
Identity fraud has entered a new phase.
While account takeover and existing card and account fraud have both decreased in frequency, fraudsters have shifted their focus to high value, less fortified areas that are more susceptible to new account fraud (NAF). Fraudulent actors are deploying proven tactics against less conventional targets and are succeeding. Even more alarming, these attacks are costing victims greater time and expense.
The Changing Landscape of Identity Fraud white paper details six key trends from the 2019 Identity Fraud Study published by Javelin Strategy & Research that shows the migratory patterns of fraud and provides tactics for firms across multiple industries to bolster their defenses against emerging fraud attacks.
Loan origination is the latest target.
In 2018, existing account fraud, existing card fraud, existing non-card fraud, and account takeover all dropped below 2017 levels in terms of cost as well as the number of victims impacted. However, new account fraud increased by $400MM to $3.4BB, an increase of 13% while fraud overall dropped 13%.
As major financial institutions have invested in improving their authentication practices, fraudsters have shifted focus to areas that are less fortified and haven’t previously suffered extensive losses. These areas include online accounts (e.g., eBay and Amazon), mobile phone accounts, car loans, mortgages, student loans, and HELOCs. Loan originations (car, mortgage, student, HELOC) showed particularly significant increases in fraud levels; rates more than doubled in each of these categories.