COVID-19 accelerated many carriers’ adoption of digital and mobile channels in the claims process. Digital channels usher in a host of benefits for carrier and customer alike—but they also lower the bar for fraudsters wielding stolen and synthetic identities.

Detecting the Undetectable

New research from LexisNexis® Risk Solutions offers a behind-the-scenes look at how top 50 insurance carriers are experiencing—and dealing with—digital identity fraud in personal lines claims. 

The results show that digital identity fraud is:

• Already a challenge: 90% of carriers say it’s a problem in personal lines claims, and 67% say it’s a problem across all or most business lines
• Hard to pinpoint: 47% of carriers say it’s “very difficult” to detect
• Poised to get worse: 80% of carriers say it will become a bigger problem as the use of online and mobile claims channels increases

Meanwhile, just 33% of carriers say they have an effective way to detect and mitigate identity-related fraud.

What personal lines carriers are doing to tackle digital identity fraud in claims

The research reveals that carriers with a multi-layered approach to identity and access management are:

• More likely to identify digital identity fraud earlier in the claims process
• Better able to balance customer experience and fraud mitigation
• Measure ROI beyond fraud cost

What’s more, companies with a multi-layered approach to mitigate digital identity fraud experience a fraud cost that’s 25% lower than those that don’t.  

Protect your business today, not when it has been compromised