Fraud Rate continues to increase amid COVID-19

Equifax Canada reports that the application fraud rate rose by 43 per cent and the deposit account fraud rate rose by 53 per cent peaking in April and May respectively.

To fight new account fraud, the company released Luminate, a cloud-based fraud prevention platform using machine learning analytics and data insights to help fraud managers prevent fraud and avoid losses that directly impact their bottom line.

“Fraudsters are quick to take advantage when they detect weaknesses, which is particularly true now when businesses are grappling with COVID-19,” said Carl Davies, Equifax Canada’s head of Fraud and Identity, in a prepared statement. “Most companies today are still using legacy platforms that cannot keep pace with fraudsters using advanced technologies. Luminate anticipates and uncovers fraud insights in a way that legacy systems simply cannot.”

The Luminate fraud prevention platform will allow companies to:

“Businesses realize that fraud is costing them money they cannot afford to lose during these difficult times,” said Davies. “Finding new customers, and then growing and protecting those relationships, begins at the application stage. The entry point for a customer however, may also be the front door for a fraudster. The Luminate fraud prevention platform, with the support of our fraud consulting team, can help stop fraud before it happens and reduce losses at a time when companies need to focus on their bottom line.”