Online firms and their banking partners have both the means and motives to stop fraudsters from accessing personal information, but today’s connected economy encompasses markets and customer service channels around the world. Thwarting fraud in one area is not enough to prevent it from cropping up elsewhere, and businesses are essentially playing whack-a-mole as fraudsters’ attacks move across channels. These bad actors are leveraging numerous methods — including false mobile apps, loyalty and reward schemes, ATOs, phishing and phone scams — to find and exploit security flaws.
Digital fraud rose 30 percent in Q3 2019, with one out of every five new accounts revealed to be illegitimate. A data breach in one channel can have far-reaching consequences in others, too, making omnichannel fraud dangerous for both businesses and their end customers. Personal details stolen via one false account can be utilized to break into other platforms, thus perpetuating an endless cycle of fraudulent transactions.