Identity fraud is a crime that has surged in recent years, driven by mass digitalization and the increase in online transactions. 

According to the 2024 Fraud Report by Javelin Strategy & Research, in 2023, approximately 33 million people were victims of identity fraud in the United States alone, with a total loss of $52 billion. This figure includes both direct fraud (such as credit card theft) and indirect fraud, such as hidden expenses resulting from damage repair. 

Direct Costs vs. Indirect Costs 

While it is easy to focus on immediate losses, such as money stolen from bank accounts or credit cards, the hidden costs are equally significant. 

These include:

• Recovery costs: From lawyer fees to the time spent resolving fraud, the process can be lengthy and expensive. 
• Reputation loss: For businesses, an identity fraud incident can cause significant damage to their reputation, resulting in a loss of trust from customers and, consequently, a decrease in sales. 
• Emotional impact: Identity fraud victims also experience considerable emotional stress. The constant worry about financial security and the loss of trust in digital platforms can have long-term effects on individuals' mental health. 

Identity fraud in the business world

Identity fraud not only affects individuals but also has serious repercussions for businesses. According to IBM’s 2024 Cost of a Data Breach report, the average cost of a security breach in a company due to identity theft is approximately $4.8 million. 

Additionally, companies take an average of 287 days to detect a security breach, meaning that losses accumulate over a long period. 

How does this affect customer relationships? 

Trust is the fundamental pillar of any business relationship, and identity fraud quickly erodes that trust. If a customer feels their personal information is at risk, they are likely to move away from the affected company and seek safer alternatives. 

A study by Accenture found that 83% of consumers would switch providers if they felt their data was not properly protected. 

B-FY and its innovative technology 

In this context, B-FY emerges as an effective solution to mitigate identity fraud risks. Unlike traditional systems, B-FY does not rely on passwords or sensitive data such as credit card numbers or email addresses. 

Instead, it uses advanced biometric authentication technology to verify a person's identity quickly and securely, without storing or processing personal information. 

B-FY offers a frictionless authentication process to validate the person interacting with the platform. What makes B-FY’s technology unique is its ability to perform this validation without compromising privacy. 

Rather than storing sensitive data, B-FY uses a real-time verification system that ensures authenticity without creating additional risks. 

This innovative approach offers several advantages: 

• ​​​​Prevention of identity theft: By using biometric methods, the possibility of fraudsters gaining access through stolen passwords or identity impersonation is eliminated. 
• Guaranteed privacy: B-FY’s technology ensures that no sensitive data is stored, protecting both users and businesses from potential data breaches. 
• Frictionless experience: Users can complete their authentication process quickly and effortlessly, enhancing the overall experience and reducing the likelihood of abandonment. 

Identity fraud: an evolving challenge 

Identity fraud is not only an economic problem but also a challenge for trust and security in the digital world. As technology advances, so do the tactics of cybercriminals, making the adoption of innovative solutions more critical than ever.  

With tools like B-FY, businesses can better protect their customers and prevent the costly effects of identity fraud, maintaining the integrity of both business and personal relationships. 

Want to know more? Request a free demo here.