How Fraudsters Use Stolen Personal Information Online and How to Detect It

Billions of dollars are lost every year to online fraud and cybercrime. As more commerce moves online, the threat of cybercrime continues to grow. Cybercriminals are looking for one thing—information they can leverage to their advantage. Specifically, they are on the lookout for sensitive personal information. However, there are tools to better help protect you and your business against cybercriminals with early detection methods. To avoid the following common cybercrimes, arming yourself with knowledge is essential, as is using caution. However, an effective fraud detection tool equipped with sophisticated behavioral analytics technology can be a real game-changer for your organization. Here’s why.

Fraud Is Becoming More Sophisticated

One major consideration is the increased sophistication of modern cybercrime and fraudsters. Attacks that used to be fairly simple fraud attempts from individuals or small groups are now often carried out by organized criminal organizations or fraud rings. The advancement of their techniques makes an equally sophisticated response with defensive behavioral analytics solutions more critical than ever.

Organized Bot Attacks

A bot is simply a small, specialized piece of software that runs online with specific tasks. Bots are used for countless legitimate tasks online, but they can also be used for fraud. A bot attack involves a person or group using a group of bots—sometimes numbering in the millions—to attack an entire business. Or, they can be targeted intrusions to retrieve sensitive information. The right fraud detection tool can proactively help you identify malicious activity indicative of bot attacks on your business.

New Account Opening Fraud

Identity theft and new account opening fraud are some of the most common fraud methods. In addition to posing a major threat to businesses and financial institutions the world over, new account fraud and identity theft can hurt an individual’s credit and result in major financial difficulties. Then there’s the stress of dealing with fraud. New account opening fraud involves fraudsters opening accounts with either stolen identities or fabricated identities. They can then steal money, run up credit, and take out loans. It’s an effective way for criminals to launder and steal money and use services illicitly. The key to detecting new account opening fraud and taking action against it is setting up a sophisticated anti-fraud system that monitors applicant behavior as they interact with forms on your website.

Phishing and Spoofing

Phishing is a term that describes fraudsters setting out bait for sensitive information by sending scam emails or setting up (spoofing) fraudulent websites to look like legitimate business sites. If you ever receive an email requesting that you take urgent action, leave it unopened and directly contact the business it claims to be from. Inputting your personal details, including credit card and banking information, into a spoofed website is a one-way ticket to identity theft and fraud.

What You Can Do

A few simple steps you can take to counteract fraudster’s attempts at cybercrime include limiting the information you or your organization makes available online and being extra cautious with every online action. Never click on links from unsolicited emails. If you get an unexpected email claiming that you owe money or should otherwise contact a company or bank, look up their information online and try to contact them directly before proceeding. Beyond personal action you can take, it’s crucial to employ a fraud defense tool that uses behavioral analytics so your organization can identify risky behavior before it can access important information. Search for a system that proactively monitors crowd-level behavior and applicant behavior for suspicious activity and engage your step-up verification solutions when it flags nefarious actions.

About NeuroID

Digital growth is about more than simply standing out. In addition to your competition, the web is also rife with bad actors who work every day to exploit vulnerable organizations. As a result, you need to employ cutting-edge software for superior new account opening fraud detection. That’s where NeuroID and its suite of sophisticated cybercrime detection tools can offer the solutions you need. Using the power of behavioral analytics, NeuroID offers identity verification software to help you combat fraud rings and other bad actors. The wide availability of compromised PII has created a digital identity crisis, so NeuroID uses pre-submit data instead to catch fraudsters early and engage your step-up verification. With crowd-level detection and identity monitoring from NeuroID, your organization can thwart digital threats and enjoy secure growth.

Fight digital threats to your business today at https://www.neuro-id.com/