Is it time to re-examine your small-business fraud strategy?
Small-business owners appear to be an increasing target for identity fraud perpetrators, a trend that is alarming banking institutions, payment processors and business-to-business service providers. According to Javelin Strategy and Research’s 2010 Identity Fraud Survey Report, "self-employed or small business owners (16 percent of all consumers) are one and a half times more likely to suffer fraud (7.4 percent vs. 4.8 percent for all consumers) and required three hours longer to resolve fraud compared with all consumers, indicating more complicated frauds and a need for greater assistance."
There are a number of reasons why cybercriminals target small-business owners. Without small-business identity fraud protection programs in place, businesses often are not seen as victims in the way that consumers are. For example, victimized businesses aren’t afforded the protections that consumers receive under identity theft laws, such as access to credit information. Combined with the trend that business fraud is estimated to be three to 10 times more profitable than consumer fraud, fraudsters are gravitating toward small-business fraud.
To help institutions mitigate small-business applicants' fraud risk, Experian® recently launched BizIDSM. Combining score-based analytics with Experian’s extensive business and consumer data sources, BizID delivers an optimal mix of fraud prevention through statistical modeling and historical risk alerts.
To learn more about Experian’s small-business fraud products and services, contact your local Experian account representative or call 1 888 414 1120.
1Javelin Strategy and Research, 2010 Identity Fraud Survey Report