Report: Compromised Identities Used in Fraud Attempts Mostly in First 48 Hours

Oct. 5, 2015

Report: Compromised Identities Used in Fraud Attempts Mostly in First 48 Hours Once an identity has been compromised, fraudsters act very quickly and confine their fraud attempts to one industry before fanning out with the stolen information to make attempts at monetizing it in other industries, according to a new report from ID Analytics. The San Diego-based company looked at 68 million Social Security numbers of both fraud victims and non-compromised consumers to identify how fraudsters are using stolen information. An analysis of the velocity of fraud attempts on the sample showed stolen personally identifiable information was used in fraud attempts 7.5 times more in the first 24 to 48 hours than non-compromised identities. After 48 hours, previously compromised identities remain 3.4 times more likely to be used.

“Fraudsters strike fast and hard. Having access to up-to-the-minute transaction data from sources across industries is critical in detecting and preventing fraud activity,” said Scott Carter, CEO of ID Analytics.

Carter said the use of compromised identities to run schemes like account takeovers is similar to how fraudsters used to use credit card information: The compromised identities initially tend to appear at multiple businesses within the same industry, but over a longer period these identities are seen moving industries.