New TransUnion Research Finds Identity Fraud at Center of Many Digital COVID-19 Scams
August 06 2020 - 6:00AM
New research from TransUnion LLC’s (NYSE: TRU) Consumer Financial
Hardship studies found that phishing is the top digital fraud
scheme worldwide related to the COVID-19 pandemic. Among consumers
reporting being targeted with digital COVID-19 schemes globally,
27% said they were hit with pandemic-themed phishing scams. To help
prevent identity fraud that can result from phishing, TransUnion
utilizes solutions within their flagship IDVision with iovation
suite that focus on identity verification, consumer authentication
and fraud prevention.
“From the impacts of phishing and other well documented COVID-19
scams like unemployment fraud, it’s clear that fraudsters have the
data and increasing opportunities to create synthetic identities
and utilize stolen identities,” said Anne-Marie Kelly, VP, Market
Development, Identity Management and Fraud Solutions for
TransUnion. “According to surveyed Canadians, identity fraud is a
primary way fraudsters leverage stolen consumer data from phishing,
the most common threat in Canada, and other social engineering
schemes. It can have long-term impacts for consumers such as the
compromise of multiple online accounts and bringing down credit
scores, which we anticipate will increase during pandemic
reconstruction.”
To better understand the impacts of COVID-19 on consumers,
TransUnion surveyed 7,384 adults in Canada, Colombia, Hong Kong,
South Africa, the U.K., and the U.S. between June 30 and July 6,
2020. It asked the consumers if they had been targeted by digital
COVID-19 fraud and if so, which digital fraud scheme(s) related to
COVID-19 were they targeted with. Globally, 32% said they had been
targeted by digital fraud related to COVID-19 with the below being
the top types of COVID-19 fraud they faced:
Top Global Online COVID-19 Scams
Targeting Consumers
Rankings |
Percentage Hit by SchemeAmong Those
Targeted by DigitalCOVID-19 Fraud |
- Phishing
|
27% |
- Third-party seller scams on legitimate online retail
websites
|
21% |
- Charity and fundraising scam
|
19% |
- Unemployment scam
|
18% |
- Fraudulent COVID-19 vaccines, cures, tests, and
PPE
|
15% |
- Fake insurance
|
15% |
- Shipping fraud
|
14% |
- Identity theft
|
14% |
- Stolen credit card or fraudulent charges
|
13% |
- Stimulus check scam
|
12% |
- Someone changing your personal or account
information via a call center
|
12% |
- Account taken over
|
11% |
Online COVID-19 Scams Targeting Consumers
by Country
Country |
Top Fraud Type |
Percent Targeted by AllDigital COVID-19 Fraud |
Canada |
Phishing |
30% |
Colombia |
Third-party seller scams on legitimate online retail websites |
25% |
Hong Kong |
Phishing |
37% |
South Africa |
Unemployment scam |
38% |
U.K. |
Phishing |
30% |
U.S. |
Phishing |
31% |
“Although the schemes may vary by country, a new approach to
identity verification that supplements traditional authentication
methods is needed to defend against their impact,” said Kelly. “The
key is creating a friction-right experience where consumers are
confident they are dealing with a legitimate organization or
business.”
TransUnion Capabilities to Combat Identity
Fraud
IDVision® with iovation®, TransUnion’s flagship identity
verification, consumer authentication and fraud prevention solution
suite unites personal and digital data into one of the most
comprehensive data identity platforms in the world.
- With Enhanced Bureau Verification Services
Identity, TransUnion offers a solution that can assist in
the identification and risk categorization of consumers, while
keeping customer friction to a minimum throughout the process. The
result is a better ability to detect fraud while quickly approving
good customers and minimizing back-office reviews.
- TransUnion’s Address Verification Services
(AVS) compares credit card numbers and other consumer information
with the TransUnion credit bureau file to help verify that all
information matches the billing file. AVS helps businesses look for
fraudulent transactions and chargebacks—especially valuable for
internet and mail order/telephone order merchants, who have greater
challenges in identifying customers.
- With IDVision with iovation Device
capabilities, TransUnion provides a comprehensive view of consumer
identity. This solution stores fraud evidence for devices
identified as being used in fraudulent transactions, with up to
five years of historical device data available.
“Given the digital transformation that’s been accelerated by the
recent pandemic, it’s more important than ever to secure trust in
faceless channels with a simple consumer experience by reducing the
need for businesses to manually review transactions,” said Shirley
Inscoe, senior analyst at technology analyst firm Aite Group.
This solution also includes a global network of fraud and risk
insights, employing data of fraudulent activity for additional
insights about devices, locations and behaviour. TransUnion
prioritizes actionable data to act confidently based on all
pertinent risk factors associated with email, phone and IP address,
where applicable.
For more details about TransUnion’s fraud and identity
management solutions, go here. To download TransUnion’s
Consumer Hardship Studies, go here.
About TransUnion (NYSE: TRU)TransUnion is a
global information and insights company that makes trust possible
in the modern economy. We do this by providing a comprehensive
picture of each person so they can be reliably and safely
represented in the marketplace. As a result, businesses and
consumers can transact with confidence and achieve great things. We
call this Information for Good.® TransUnion provides solutions that
help create economic opportunity, great experiences and personal
empowerment for hundreds of millions of people in more than 30
countries. Our customers in Canada comprise some of the nation’s
largest banks and card issuers, and TransUnion is a major credit
reporting, fraud, and analytics solutions provider across the
finance, retail, telecommunications, utilities, government and
insurance sectors.
Contact |
Fiona
Bang |
E-mail |
Fiona.Bang@ketchum.com |
Telephone |
647-680-2885 |
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