Fraud News Update 02.17.17 – This week’s edition features: Escalating Crime (ID Theft), Small Business Fraud (Kills), Data Breach (Growth), Technology and the “P” Word (IOT), Voter Fraud (Chronicles) and Highlights (from last week’s social media feed).
If you’re a regular reader of the Fraud News Update, you may have noticed over the last three weeks that the blog wasn’t being distributed to you via our normal social media feeds. We noticed the same thing. While we published during that time, we ultimately discovered that there was an issue with the app which the developers are currently working to correct. If you’re interested in reading those blogs, or any other back issues of the Fraud News Update, they’re currently posted on our blog page.
As leaders in the fraud consulting arena, read on for more topical information and our insights, observations and unique commentary on some of the weekly fraud news stories.
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ID related fraud’s been around for some time now. While the industry’s made a lot of progress in trying to minimize and mitigate its impact, it’s now a $50 billion dollar a year problem and shows no sign of slowing down any time soon. Record numbers of people were victimized in 2016.
Synthetic IDs are where it’s now at according to a recent interview with Pat Phelan, TransUnion’s SVP of Identity.
Small Business Fraud Kills
Business fraud can have a devastating impact. However, larger businesses typically have the financial resources and reserves to weather out such occurrences without a major, Enron like, impact to the business.
Many small businesses, however, aren’t so lucky and a significant internal fraud can be lethal, often resulting in the “out of business” sign being hung on the door. Here are some of the indicators that a small business is struggling and some may be the telltale signs that someone’s committing fraud behind the scenes.
The number of data breaches continue to skyrocket year over year as are class action lawsuits, privacy complaints, liability claims and damages associated with these types of incidents.
As a result, the legal landscapes adapting accordingly as court cases make their way through the system while liability and damages are resulting in financial awards to plaintiff’s.
Arby’s new slogan may very well need to be changed to: We have the breach!
Technology and the “P” Word
The Internet of (Insert Your Business Vertical Here) Things is spreading like wildflowers. It seems like every industry’s trying to figure out the application and how they can make it work effectively for their type of business.
The reality, however, is that the massive influx of devices being connected to the Net and the information flowing from, and to, those devices is rapidly altering the big data map.
Perhaps more importantly are the massive data flow, collection, and information dissemination from those devices, along with growing security and privacy considerations consumers will demand. See what the FTC and big law are saying about IOT growth and increased privacy demands.
Privacy issues notwithstanding, look for increases in the number of breaches and ID Theft incidents associated with the changing data landscape. New technology is great but it also opens up opportunities for bad actors looking to exploit the technology for financial gain. There are clearly two sides to this coin.
The Voter Fraud Chronicles
The current administration continues to push the massive “voter fraud” issue.
It doesn’t matter whether you’re a Democrat or Republican because one things certain: If this were the 1996 movie Jerry Maguire, they’d be shouting “show me the evidence!”
Seriously, investigations are about “facts,” so where’s all the evidence? There’s probably more evidence that fans stuff Major League Baseball’s All Star ballot than there is the Presidential election! We know this to be true because every year it seems like some fading star hitting about .198 makes the team!
The only people winning in this deal are the late night comedians who’ve seen a significant spike in ratings since January. Here’s Stephen Colbert in a funny bit calling Bulls**t on the entire voter fraud claim.
Then, Melissa McCarthy absolutely killed it on SNL with her Sean Spicer press briefings and it looks like Alec Baldwin’s one month impersonation has turned into a regular gig for at least the next 4 years.