Uptick in Digital Transactions Leads to Increased Identity Fraud Activity
The surge in digital activity over the past year, in part due to COVID-19, resulted in more identity fraud, according to 64% of respondents in a recent insurance fraud study conducted by Aite-Novarica Group and commissioned by LexisNexis® Risk Solutions.
Carriers experiencing increased fraudulent activities are seeing this occur, almost evenly, across three entry points: underwriting or at the point of application, customer service or at the point of account access, and claims or at the point of payment.
While multifactor authentication is being widely implemented across lines, more advanced fraud mitigation solutions like digital fraud risk scores and link analysis remain underutilized.
The report suggests that carriers taking a wait-and-see attitude are putting themselves at risk. To learn more, download the full Insurance Fraud Report.