In fake identity fraud, the fraudster combines real information with fictitious information to create a new identity. The real information used in this context is usually stolen and used to create fraudulent accounts and place fraudulent orders through them.
It is not uncommon for the fraudster to use the new accounts for a certain period to gain your trust and build up a customer history – and then to be able to make a disproportionately higher profit from the account.
Fake identity fraud is one of the most difficult fraud schemes to identify – and therefore one of the fastest growing.
Any loss that is intentionally inflicted on your business is a fraud. The range of fraud patterns and attempts is vast. Learn how to protect your business from fake identities: https://riskident.com/en/whats-fraud/