First-Party Fraud occurs when individuals deliberately misuse their own accounts, credentials, or personal information to commit fraud, often by making purchases or obtaining services with no intention to pay.
Common Types
- Credit abuse
- Return fraud
- Loan defaults
- Chargeback fraud
- Application fraud
Warning Signs
- Rapid spending
- Multiple accounts
- Payment defaults
- Pattern changes
- Account manipulation
Detection Methods
- Behavior analysis
- Pattern recognition
- Credit monitoring
- Account tracking
- Risk assessment
Prevention Methods
- Credit checks
- Identity verification
- Behavior monitoring
- Policy enforcement
- Risk scoring
Best Practices
- Regular monitoring
- Policy updates
- Documentation
- Risk assessment
- Staff training
First-party fraud requires sophisticated detection methods due to legitimate initial credentials.