Digital identity now runs through every part of the customer and partner journey, from logging in and making transactions to onboarding vendors and issuing loans. This shift is changing how companies manage risk. Instead of being contained within a single step, identity risk now spans systems. A mistake in one place can affect everything else, from fraud losses to customer experience.
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.