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Stand up to the scamdemic: Signicat helped reduce fraud costs by 75%

  • Fraud is indeed reaching national security threat levels in all countries, so how can companies fight back?

In the ever-evolving landscape of finance, companies face a dual threat when it comes to identity fraud, presenting challenges that can potentially jeopardize their financial stability and regulatory standing. One facet of this threat emanates from adept fraudsters who manipulate identity documents to engage in activities like opening fraudulent bank accounts or requesting a loan, posing a significant risk to financial institutions. Simultaneously, another breed of fraudsters targets users by stealing their login credentials, exposing them to unauthorized access and potential financial loss.

Signicat, the leading provider of digital identity solutions in Europe, is helping bring trust back to digital. Its digital identity solutions help businesses reduce fraud by 75%, increase client conversion rates by 19% points, and enable them to expand into new markets in just 17 days, according to a Total Economic Impact™ study, conducted by Forrester Consulting.

From pandemic to scamdemic

Cyber-related fraud techniques were sophisticated in the past years and allowed criminals to put a Covid twist on existing scams. Scammers exploited people’s financial vulnerability with offers for debt consolidation, payday loans, investment or work-from-home scams.

Criminals continue to use proven post-pandemic attack typologies:

  • ID fraud – criminals impersonate victims by using their personal details to buy goods or apply for accounts, loans, or cards in their name.
  • Synthetic ID fraud – criminals blend real and fictitious information to create a synthetic identity to apply for loans, credit cards, and mobile phone contracts. These fake IDs can also be added to accounts or credit cards as a secondary user to build a credit profile.
  • Account takeover fraud – criminals gain access to a victim’s account, without their knowledge or permission, to make fraudulent purchases, transfers, or applications, or lock the rightful owner out of the account.

"Fraud is a major concern for companies in regulated sectors that must comply with AML regulations in the countries in which they operate. At Signicat, we bring a multi-faceted approach to fighting fraud: we stop it in different ways and at different moments of the user's life cycle, such as identity verification through digital identities with risk based security step-ups or AI-powered video identification techniques as well as risk analysis flows through different data sources", says Pinar Alpay, Chief Product & Marketing Officer at Signicat. “The concerns we see in our customers are to be compliant and stop fraud at the root but also to use a convenient and seamless technology for their users that allows them to grow their business. Signicat is prepared for every case, from the detection of false identity documents to deepfakes”, she adds.

The consequences of identity fraud are severe, ranging from substantial financial losses to fines imposed by local regulators. Businesses are at the crossroads of balancing compliance with the financial viability of implementing robust security measures. Anti-money laundering laws, designed to protect against illicit financial activities, can test the resources of companies trying to adapt to a variety of regulatory environments.

Signicat powers fraud fightback

Signicat helps businesses prevent fraud, expand cross-border and comply with regulatory requirements. Its digital identity platform incorporates a suite of identity proofing, authentication, fraud detection and signing systems through a single integration.

To examine the potential return on investment (ROI) businesses may realise by deploying its platform, Signicat commissioned Forrester Consulting to conduct a 2023 Total Economic Impact™ (TEI) study.

Some of the key findings include:

  • A 75% reduced fraud costs resulting from a fraud rate reduction: Through different identity proofing methods like digital identities or electronic identity verification it uses and its fraud monitoring capabilities, Signicat showed the capability to reduce the number of fraudulent customers during the onboarding process. It also prevents fraudsters who are impersonating customers from accessing existing customers’ accounts or portals.
  • Improved ability to meet anti-money laundering (AML) regulations across countries: Signicat offers the ease of entering new markets in a matter of days, solving the complexity of local compliance and regulations, as its solutions are fully compliant with all KYC and AML regulations required for highly regulated sectors such as companies in the financial sector.

Signicat helps businesses prevent fraud, expand cross-border and comply with regulatory requirements. Its digital identity platform incorporates a suite of identity proofing, authentication, fraud detection, and signing systems, all accessible through a single integration point.

For further information, please contact:

Alba Zaragoza

Communications Manager
Signicat
Phone: +34 648 839 894
Email: alba.zaragoza@signicat.com