First Party Fraud: When the Customer Is NOT Always Right
Jan. 31, 2014 – Recent data breaches are front-and-center in the public consciousness, with retailers and banks scrambling to provide answers and customers worried about the safety and security of their accounts and identities.
However, while high profile breaches serve to raise consumer awareness, as well as retailer responsiveness, some consumers are using both reactions to perpetrate more fraud. With such widespread publicity, it is likely that thousands of fraudsters with no connection to the original data breach may take notice and exploit retailer’s willingness to remediate the situation.
This type of fraud – known as “first party fraud” – happens when someone uses a verified identity to enter a transaction or account application with malicious intent. Read the full story HERE on the Retail Merchandiser blog.