Application Fraud: Accelerating Attacks and Compelling Investment Opportunities
Application fraud has consistently been reported to be among the top two or three biggest pain points for fraud executives at North American FIs for the last five years, and there is evidence that it has gotten significantly worse in 2020. This Aite Impact Report and related research examines the latest trends in application fraud in DDA and credit card accounts, how North American FIs are managing these risks, and why investments in application fraud controls continue to be among those with the most appealing business cases.
Key takeaways from this Aite report include:
- Why synthetic identity fraud accounts for the lion’s share of losses associated with application fraud, which is projected to reach more than $4.1 billion by 2023.
- How FIs have enjoyed benefits from investment strategies that have prioritized transformation efforts around identity verification controls meant to renovate their Know Your Customer (KYC) control framework.
- Why many FIs continue to struggle to articulate the impact that application fraud and its derivative forms of financial crime have not only on losses but also on demand deposit account (DDA) and credit card portfolio quality as measured by profitability.
