Beyond Identity: The Multifaceted Nature of Application Fraud with Frank McKenna

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In this episode of the Fraudology Podcast, host Karisse Hendrick welcomes back fraud expert Frank McKenna to discuss the alarming rise in application fraud targeting digital banking and lending. They dive into recent research from Visa showing financial institutions are facing mounting losses as cybercriminals exploit digital platforms with sophisticated identity theft tactics. Frank provides expert analysis on why application fraud has skyrocketed, with 1 in 15 digital loan applications now being fraudulent compared to just 1 in 1000 for transaction fraud.

The conversation explores key drivers behind this trend, including increased identity theft from data breaches, undetected first-party fraud, and the cultural acceptance of fraud as a way to exploit banks. Frank and Karisse discuss how digital lending has made it easier for fraudsters to submit mass applications using bots and stolen information. They also examine the 244% surge in digital document forgeries and 40% increase in deepfake biometric fraud attempts.

Listeners will gain valuable insights into the limitations of relying solely on identity verification, the importance of layered fraud detection looking at multiple data points, and emerging schemes like "credit washing" where fraudsters exploit rules meant to protect human trafficking victims. Tune in to arm yourself with knowledge on the evolving application fraud landscape.

Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.

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She brings her experience, expertise, and extensive network of experts to this podcast weekly, on Tuesdays.