Brad Wiskirchen: It’s a perfect storm where it's much easier for the bad guys to do what they do, and much harder for the good guys to do what they do.
There's a number of reasons why fraud is increasing in volume and sophistication. It's very easy to learn how to become a fraudster now.
My favorite story is we were watching a fraudster who does regular posts, and he said, "Hey, I'm sorry I haven't been on for two weeks, but my parents grounded me because I got a bad grade in my math class. I've been grounded from the computer, so I haven't been able to update you, and haven't been able to give any tutorials on how to commit fraud." We've got, basically, a junior high or high school kid teaching everybody online how to commit fraud, which is shocking.
One, easy to get training. Two, very low barriers to entry. It doesn't cost that much. The software solutions that are out there to help the fraudsters are relatively inexpensive.
The third reason is just that the data is readily accessible. There's more data out there than there's ever been before. It's very easy to create a synthetic identity.
The unintended consequence of some of the privacy regulations that are being passed around the world also make it harder for the good guys, because they're the only ones who actually abide by privacy regulations, and data privacy, and data security regulations, and other regulations. A fraudster, however, really has two rules that they live by. One is get as much money as they can, and two, don't get caught.
The fraudsters are becoming more sophisticated in their attacks because they're becoming specialized, and they're engaging in joint ventures. What I see is advertisements of, "Hey, I'm a specialist in XYZ. I'm looking for a specialist in ABC. Let's do a joint venture and let's partner and use our various areas of expertise in order to, basically, commit more fraud."
There's a lot more specialization than there used to be, and that usually ends up in improved efficiencies in whatever you're engaged in, including crime.