Credit Fraud

Retail Credit Departments Engage in the War against Credit Fraud

Fraud is a problem that costs more than $ 221 billion worldwide. The retail credit industry, which includes any business that offers credit to their customers, such as auto dealers, casinos and department stores, must protect itself against credit fraud and react quickly to new threats as criminals continue to become more creative and efficient in their use of digital technology to commit fraud in an effort to secure an unfair or unlawful gain.

In 2008 alone, Javelin and Associates reported that existing account fraud totaled more than $31 billion and that figure continues to climb. Such losses make it hard for the industry to increase their profits.

Regulatory Compliance when Issuing Credit

Because Finance Companies issue credit, they must comply with complex regulatory requirements to validate with whom they conduct such credit transactions by immediately verifying the authenticity of the ID being presented. Examples of regulations include the Fair Credit Act, the “Red Flag Rule”, mandates associated with the Free and Accurate Credit Trade Act, and the Customer Identification Program provisions of the Bank Secrecy Act. These combined legislative directives stipulate that issuers of credit must proactively involve themselves in the fight against identity theft by creating procedures, documented with step–by–step instructions, for how to validate ID documents of any individual applying for and being issued credit, and to maintain records.

Fraud Fighter™ enables credit departments to immediately verify the authenticity of identification to stop crime before it can occur with a quality multi–layer fraud prevention program. Fraud Fighter, a division of UVeritech, recommends and implements proven solutions designed to prevent fraud related theft with easy to use, inexpensive and reliable protection controls. Fraud Fighter quickly eliminates theft related to credit fraud and acts as a visual deterrent to stop fraud at a cost under $100.