History has shown us many cases of identity theft. Some were famous and some were not so much. In today’s time, con artists and fraudsters operate in a somewhat similar way. They create stories that appear to be very believable, while, playing psychological tricks that convince people to give up their important details such as credit cards. One may wonder why would someone be so naive as to give an unknown person his identification details. But the fact of the matter is that in 2020 over $57 billion was lost by American citizens due to identity fraud.
Matters can worsen if such fraudsters get their hands on business information. People’s information could be used to commit fraud and tarnish their reputation. Such incidents even get reported by media news outlets.
Understanding Identity Theft
Identity theft is an activity when someone gets hold of another person’s info and uses it without your permission. They might use it to get loans. Moreover, they can make purchases with your credit card, or even apply for government help or medical services in your name.
The scary part? Many folks only realize they’ve been scammed when it’s too late – like when their card gets declined or they get a call about a loan they didn’t take out. According to the FTC, someone gets hit with identity theft every 14 seconds.
But the question is how do these crooks do it? Sometimes it just takes a small slip-up, like falling for a fake survey promising rewards or getting tricked by a tech support call. Once they get a bit of your information they can wreak havoc on your life. So Identity fraud detection is a good way to counter it.
So let’s discuss some of the famous examples of identity fraud.
Biggest Identity Theft Frauds
In one case, David Matthew Read and Marc Higley pretended to be Demi Moore’s assistants to get a new credit card, then splurged over $169,000 on luxury goods. They got caught when Read used the stolen card along with his own at a store.
In another case, Turhan Armstrong used stolen identities, including those of children and people who had left the country, to scam $3.3 million. He applied for loans, opened bank accounts, and bought homes and cars using this information. Armstrong was sentenced to 21 years in prison and had to repay the stolen money.
Kenneth Gibson, an IT professional, exploited his access to people’s personal data at work. He created fake PayPal accounts and stole over $3.5 million from victims. Gibson was caught when he requested a check from PayPal that matched a victim’s name. This shows why an identity fraud check is imperative.
Then there’s Luis Flores Jr., who went as far as pretending to be celebrities like Kim Kardashian to get new credit cards. He had a flash drive with personal data from celebrities and politicians and used it to commit fraud. Flores was sentenced to three and a half years in prison, while his mother received probation for covering up his crimes.
Prevention
After reading the above examples what do you think about these instances? All those stories? They’re all about fraudsters getting their hands on someone’s personal information and using it to pull off scams. It’s frustrating because even if a person is super careful with data, one shady employee with access to customer information can mess things up big time. Plus, these scammers are very careful in what they do and often find all sorts of tricks to exploit. Hence, identity fraud protection is not very easy.
Then there’s the part where the banks only catch on to the scam after something fraduelent already happened in someone’s account. But the fact of the matter is how were they supposed to know it wasn’t really Demi Moore’s assistant calling, but some impostor?
The answer is what if these companies had this advanced tech called voice biometrics? Basically, it checks if the caller’s voice matches the real customer’s voice in real time. The thing is that even if a scammer knows all the secret codes and your personal data, mimicking someone’s voice is a whole different ball game. Hence, it is an effective identity fraud prevention mechanism.
Every person’s voice has inherently unique features and voice biometrics picks up on those to confirm who’s talking. So if the system has the real customer’s voice recorded, it can detect fraudsters in an instant, even if they’re good talkers with all the right answers. And since this verification can happen quietly while the conversation goes on, it’s harder for scammers to catch on and bail before they’re caught.
Conclusion
Fraudsters are quick to change tactics and they find new ways to steal people’s information. While it’s tough to completely avoid them, one can make it harder for them by being careful about sharing data and keeping an eye on the bank accounts.
On the other hand, companies can also step up their game by using voice biometrics on phone calls. These systems, powered by AI, can quickly tell if it’s you calling or a scammer trying to get a new credit card or change account details. By combining basic security measures with these advanced technologies, one can prevent fraud and minimize the harm caused.
