June 13, 2017 — Account Takeover and Application Fraud On the Rise
Paula Bernier, Executive Editor, TMC, writes about the rise of account takeover and application fraud, with comments from NuData on the gravity of this trend.
Account takeover fraud and application fraud are two major challenges for U.S.-based financial institutions, according The Aite Group Impact Report “Financial Institution Fraud Trends: ATO and Application Fraud Rising Rapidly.”Obviously, these trends aren’t so great for consumers either.
Account takeovers alone resulted in $2.3 billion in losses in 2016, according to a March PYMENTS article. And application fraud costs the financial sector millions annually, and it can result in brand damage and negative publicity for the entities that enable fraudsters to create these new accounts, NuData Security says.
In the case of account takeover, bad actors use part of a person’s identity to gain access to that individual’s financial accounts.
For the complete article, go here.