According to the Federal Trade Commission, there were 3.2 million reported cases of fraud and identity theft in 2019. Of those reported cases, there were nearly 1.7 million fraud reports that totaled $1.9 billion lost.
Fraudsters are not going away, which means that you must take precautions to protect your institution and its customers. Many customers subscribe to some sort of identity theft protection, however these services are not preventative in nature—they simply alert customers when something has happened. And not all consumers pay for protection or alerts, making it even more important for institutions to do their best to detect and stop fraud.
Even worse than identity theft is synthetic identity fraud, which can be much harder to detect. It’s also on the rise and accounts for greater losses. With this type of fraud, it’s financial institutions, not consumers, who are the victims. Fraudsters build a fake identity with a real credit history, allowing them to apply for and receive higher credit limits and loans, which they will never pay back. It’s estimated that this type of fraud could result in financial institutions losing up to $6 billion annually.
Once you’ve become the victim of fraud or identity theft, it takes individual consumers an average of 6 months to undo the damage. It could take even more for a financial institution to undo the damage to their reputation, which is why it’s important to prevent fraud before it occurs—to be proactive rather than reactive.
Panini ValidātID helps to instantly prevent fraud by authenticating identification when it’s presented. The scanned ID is authenticated using advanced forensic tests and controls on the format of the image, data consistency, and can even check the data against popular watch lists like OFAC. If there’s a problem, an alert will appear for bank tellers and the occurrence will be stored. By flagging these suspicious IDs, you can prevent your institution from becoming a victim of fraud, and you’ll also help protect your customers.
ValidātID also eliminates the need for manual entry, which can be more prone to errors. It will also help your staff by taking the pressure of ID authentication off of them so they can instead focus on engaging with customers and building rapport. The Panini solution will help you with regulation compliance by acting as the first line of defense in fraud prevention.