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Hacking Away Your Bottom Line

posted on: Fri Mar 01 2013

There is no shortage of press about hacking these days, especially when the media itself is in the crosshairs along with many notable tech giants. While it may take years to determine the true impact of stolen information, merchants should be concerned about a less publicized report that captures the impact of increasing identity thefts and what that means to business.

According to a new report by Javelin Strategy and Research, (also reported here by CNET), identity fraud increased by nearly 5% last year. Other notable findings from the Javelin report include:

  • Incidents of identity fraud affected 5.26% of U.S. adults in 2012
  • The increase was led by new account fraud and account takeover fraud
  • 1 in 4 data breach notification recipients became a victim of identity fraud
  • Identity fraud incidents impacted one million more consumers than the previous year
  • The dollar amount stolen increased to $21 billion, a three-year high
  • Merchants and banks absorbed the bulk of the costs

Combine the last two bullets and you can see who is footing a significant chunk of the bill for data breaches and the resulting fraud – the merchant. But it doesn’t have to be this way.

While account takeover and new account fraud are definitely among the most dangerous forms of fraud, merchants who’ve selected Kount for their fraud solution remain protected at the highest level. Fraudsters still have tendencies and employ behaviors that can be detected at the point of transaction. Even as their strategies evolve so does Kount Complete, given the artificial intelligence that helps power the platform and its origin as a built-from-scratch solution by an online merchant who directly felt the impact of fraud on the bottom line.

We know firsthand the impact that fraud can have on your business, not only from the loss of product and revenue, but the additional resources needed to stop the problem. You should be focusing on how you can safely grow your business instead of worrying about the impact of the next breach.