Types of Fraud

The landscape of fraud is growing. To identify fraud and properly label fraud, it’s important to understand the different types of fraud. The below definitions are the common types of fraud seen by Alloy.

• Third-Party Fraud: Occurs when a malicious actor uses another person’s identifying information to open new accounts without the knowledge of the individual whose information is being used (source)
• First-Party Fraud: Occurs when an individual makes a promise of future repayments in exchange for goods or services without the intent to repay (source)
• Identity Manipulation: Sometimes referred to as Second-Party Fraud. Occurs when an individual is manipulated by another into committing fraud. Examples include money muling, social engineering, and vulnerable adult abuse.
• Synthetic Fraud: Occurs when an individual may steal someone’s personal information or buy it on the dark web then combine it with fake information to create a new identity (source)
• Device Risk: Occurs when an individual tampers with the GPS, apps, VPN, etc. of a device (source)
• Account Takeover: Occurs when an individual’s credentials are compromised by a bad actor.
• Other Fraud — We encourage clients to send us their own labels!

If you see signs of fraud, make sure to upload them to the Final Outcomes Page via List Import or the API.