Recently published 2014 LexisNexis “True Cost of Fraud” Study reveals that Identity Theft is a close second to Friendly Fraud, accounting for 23% of overall annual losses of large eCommerce merchants to fraud. According to AU10TIX, ID document authentication technology can not only reduce exclusive reliance on data checks alone but also speed up customer processing and increase conversion rates.
The recently published 2014 LexisNexis “True Cost of Fraud” Study reveals eCommerce merchants draw a completely different picture of fraud loss causes than all merchants. While “Lost or stolen merchandise” is by far the largest loss generator for all merchants (35% of annual fraud losses), with larger eCommerce merchants fraud is clearly the biggest pain point. From all types of fraud checked (Friendly, Return/Refund, Identity Theft) Identity Fraud plagues larger eCommerce merchants far more than any other fraud type.
According to LexisNexis, with larger eCommerce merchants: “Friendly Fraud” accounts for a 44% bigger share of the losses (26% Vs. 18% for all merchants), “Fraudulent Request for Return/Refund” accounts for a 18% bigger share of the losses (20% Vs. 17% for all merchants), and “Identity Theft” tops all, accounting for a 64% bigger share of the losses (23% Vs. 14% for all merchants). Interestingly, the same research also shows the rates of data breach victims soaring from 11.8% in 2010 to as much as 30.5% in 2013! Relying on personal data alone to verify a customer’s identity is rapidly becoming problematic. Of course, one needs to take into account that these numbers relate to reported cases only.
Detailed report: http://www.lexisnexis.com/risk/downloads/assets/true-cost-fraud-2014.pdf
“Online is where identity fraud thrives, perhaps more than many think”, says Ron Atzmon, Managing Director of AU10TIX: “It is an escalating regulatory compliance issue and a an increasing profit drainer. Obviously, compromising innocent customers’ personal data is a major issue in the online marketplace. This means that checking customer data against identity verification services is important but may not be enough. Online regulated service providers are mandated to verify customers’ information based on snapshots of their ID documents. With todays’ smart automation these images can be authenticated beyond the data they contain. This means not only far speedier customer handling but also a critical layer of fraud protection.”
“Those who’ve seen latest technology realize very quickly that it is far more than stronger and more systematic fraud protection”, says Ofer Friedman, VP Marketing of AU10TIX: “The alternative is of course manual examination and data handling. Manual means time. Manual means costs. Manual means inconsistencies. In other words, smart automation of ID authentication can actually save costs, increase conversion success chances, increase traffic handling capacity and prevent errors. What may be regarded at first thought as stronger fraud protection is actually at the same time an operating efficiency booster and a competitive leverage in itself“
About AU10TIX
AU10TIX Limited, a fully owned subsidiary of ICTS International N.V, deals with the authentication and digitization of identifying documents including Passports, identity cards, driving licenses and other complementary identifying documents. The company specializes in implementing hardware & software based applications used for scanning, identifying, content retrieval, authentication and validation of identifying documents. AU10TIX is a pioneer of all-channel (front-end and online) ID authentication and processing solutions. The company’s products drastically reduce identifying document-based fraud, reducing the costs associated with client processing and enabling effective regulatory compliance, while making the sales and support operations speedier and considerably more efficient.
For more information, visit www.au10tix.com
About ICTS International N.V.
ICTS specializes in the development and implementation of innovative security concepts and solutions designed to meet the needs of a variety of industries, mainly aviation transportation, border control and sensitive facilities. ICTS International benefits from over two decades of expertise and international operational experience in transportation security, with a particular emphasis on high-risk environments, passenger processing transactions and the integration of security services to provide a comprehensive security solution. It also offers a wide variety of customized training programs, tailored procedures and a wide range of security consulting services. The company has developed and implemented unique technological solutions, based on its comprehensive approach to security, designed to enhance the level of security while accelerating the security check process.
For more information, visit www.icts-int.com
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company’s business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company’s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company’s expectations or future events.
Contact:
AU10TIX
Ofer Friedman, VP Marketing
Email: ofer.friedman@au10tix.com
Tel.: +357 (22) 007698
ICTS International NV Alon Raich
Email: mail@ictsinternational.com
Tel.: +31-20-716 3421
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