Fraud is a bigger problem than ever in the digital era, as organized criminals exploit weaknesses in online security to commit crimes like data breaches and credit card fraud. However, the rising tide of online fraud doesn’t mean low-tech fraud is a thing of the past. Here are a few types of fraud that show why organizations’ fraud prevention practices must extend beyond the digital sphere.
One way criminals can access consumers’ bank, credit card, and other personal data is to steal their mail, and the most efficient way to do this is by filing fraudulent change-of-address cards for individuals. People from Utah to Florida have been targeted for this type of attack in 2018, resulting in identity theft, stolen packages, and hours of phone calls and follow-ups with credit bureaus, banks, and retailers to sort through the damage.
Merchants should have an agreement with their shipping carriers that all customer requests for post-purchase package rerouting must be approved by the merchant.Companies are at risk for this type of mail diversion, too. In May, federal prosecutors charged an Illinois man with mail theft and fraud after he allegedly used a change-of-address card to reroute mail from UPS’ global headquarters in Atlanta to his Chicago apartment. According to the complaint, the accused man received thousands of pieces of mail meant for the giant shipping firm, including about $58,000 in checks that prosecutors say he deposited into his own account. The US Postal Service discovered the fraudulent address change only after an inquiry from UPS, nearly three months after the address change took effect.
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