Nearly three in five (59%) fraud-risk cases linked to identity fraud, Cifas data shows

Identity fraud is now the primary threat facing consumer finance, accounting for 59% of all fraud cases according to the latest industry data. For retailers and service providers offering financing, this means the risk of 'synthetic identities' or stolen credentials at the point of sale is higher than ever. Bad actors are increasingly targeting digital application processes to secure credit or goods under false pretenses. The rise in fraud-risk cases highlights a shift in how criminals operate. Rather than just targeting banks, they are focusing on the credit application stage where merchants might have lower barriers to entry. If you offer BNPL or traditional financing, you are a target. This trend requires a shift in how you handle customer intake. Relying on simple ID checks is no longer enough to protect your business from chargebacks and lost inventory. To protect your margins, you must ensure your financing partners use robust verification tools like multi-factor authentication or biometric checks. As identity fraud accounts for the vast majority of risk, the speed of your financing approval should not come at the expense of security. Operators should audit their current financing workflow to ensure they aren't leaving a wide-open door for fraudulent applications that could lead to significant financial disputes down the line.

Source: Finextra — Lending

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