FiVerity, a leading provider of cyber fraud defense, today announced the launch of the Cyber Fraud Network™, the industry’s first collaborative system built to combat the convergence of cyber tactics with fraudulent theft. FiVerity’s Cyber Fraud Network improves the collective cyber fraud knowledge of financial institutions, regulators and law enforcement by facilitating the secure exchange of intelligence on suspected fraudsters without disclosing personally identifiable information (PII).
We sat own with Greg Woolf, CEO of FiVerity to discuss the company's new Cyber Fraud Network, how fraud has changed, and what the future of fraud prevention looks like in the age of AI and ML.
How has fraud changed over the past 5 years? How has it changed specifically during the pandemic?
Without question, a sea change has been the development of cyber fraud – the merger of fraud-related theft with sophisticated cyber-attacks. A prime example of this is synthetic identity fraud (SIF), which is designed to fly under the radar of traditional fraud detection systems. It many ways, it acts unlike the forms of identity fraud that banks have, wisely, built up significant defenses against.
The initial loans these accounts request are small at the start. The identity is made up, so there’s no traditional victim that’s going to call the bank and alert them to an unfamiliar charge. This gives the cyber fraudster the luxury of time, so they can build up their credit limit and eventually bust out with a significant theft.
Unfortunately, the pandemic has given rise to a number of factors that essentially create a perfect storm for fraud. Even late adopters are opening accounts online, and with interest rates near zero, there’s been a massive increase in the number of digital loan applications. It essentially put the consumer lending industry’s plans for digital transfor