Foreword

This report, sponsored by Intellicheck, explores the growing pervasiveness of identity fraud that stems from a lack of proper authentication and identity verification measures. The importance of employing a robust identity verification and authentication solution that best immobilizes identity fraud throughout the entire account lifecycle is made evident by the ever-evolving threat of new-account fraud and account takeover fraud. Javelin Strategy & Research, an Escalent company, maintains complete independence in its data collection, findings, and analysis.

Overview

When the state of identity fraud is examined, the losses consumers and financial institutions have sustained over the years can seem insurmountable, particularly as losses from traditional identity fraud like new-account fraud and account takeover fraud spike, much like they did in 2021. Criminals invent endlessly creative ways to exploit consumers; anything that gives them unauthorized access to existing accounts or the ability to use stolen information from a legitimate consumer to create new accounts is fair game. If those losses are to be controlled—and, more important, reduced—robust identity verification and authentication at account opening and throughout the account lifecycle must be a top priority for financial institutions.