Third-Party Fraud
Fraud committed using stolen identity credentials belonging to a real, unwitting victim, without their knowledge.
Third-party fraud uses a genuine stolen identity or credentials — without the real owner knowing — to open accounts or transact. The victim is a real, unwitting third party.
Forms it takes
It includes stolen-identity account opening and account takeover, where an existing account is compromised and drained. Because the underlying identity is legitimate, stolen-identity fraud often passes verification.
The residual
Detection and step-up authentication reduce third-party fraud, but not to zero. The losses that get through are insurable. Learn how coverage works on the Solution page.
Account Takeover (ATO)
A form of third-party fraud where an attacker gains control of a legitimate account and uses it to transact or extract value.
Chargeback Liability
The financial responsibility a business bears when a customer disputes a transaction and the payment is reversed.
False Decline
A legitimate customer wrongly rejected by fraud controls — a hidden revenue loss that grows as thresholds tighten.
First-Party Fraud
Fraud in which a real person uses their own or a manipulated identity to obtain goods, credit, or services they never intend to repay.