Apple launched a new set of products yesterday at a highly anticipated event. However, it could lead to a spike in identity fraud as a result of the offers from telecoms providers to incentivise customers to purchase flagship handsets.
Apple unveiled new details for its upcoming streaming product at its event Tuesday. Apple will make its first shows available on Nov. 1 in 100 countries and regions and offer its family subscription for $4.99 per month, CEO Tim Coo…https://t.co/bWA2BpIvLs https://t.co/eBBTtHb82q
— John E. Kindred (@MultiCultural7) September 11, 2019
Take the Apple event yesterday, which is one of several examples of how new device releases bring spikes in identity fraud for telcos. The fraud is largely a result of the offers from the telcos to incentivise customers to purchase flagship handsets. Fraudsters leverage these offers—such as no down payment offers—to obtain high-end devices because they are easier to sell and deliver the highest return.
Because there is a natural surge in legitimate demand/sales for these devices (they often fall victim to backorder, etc.), it is very difficult for telcos to distinguish legitimate sales from fraud efficiently. Traditional engines have problems delineating between the two categories, which can be costly because often, the only other solution is to have analysts review each transaction individually. The best option is to use biometrics to identify the voices, faces and behaviors of fraudsters trying to order those devices, which prevents the sale—instead of detecting the fraud after the fact. With an average daily loss of 1.5 handsets or fake accounts, and prices for new Apple devices around $1,500, they are averaging a loss of $2,250 daily. Time becomes crucial to prevent those losses, and biometrics can address that.