Identity fraud is one of consumers' most feared crimes, and at banks those schemes translate into application fraud. FICO's Adam Davies discusses today's common application fraud scams and how to stop them.

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The first step in detection and prevention is to recognize the different types of application fraud schemes, says Davies, a senior director with the Fair Isaac Advisors fraud practice.

"There are different types of application fraud; [it] isn't just about people's identities being stolen," Davies says. "There are commonly two types - first- and third-party fraud - and the main difference between those is whether someone's identity has been compromised in order to commit the fraud."

In an interview about the nuances of application fraud, Davies discusses:

Why ID theft is one of the most feared crimes; The latest application fraud trends; How organizations can improve fraud prevention without hurting the customer experience.

Davies is currently the Head of the Fair Isaac Advisors Fraud, Waste and Abuse at FICO. He is an established Enterprise Fraud, Security and Financial Crime expert, with over 15 years of fraud consulting expertise and additional expertise in application fraud, internal fraud and operational risk. He has undertaken fraud consulting engagements with companies in multiple industries and in over 80 countries, providing them with best practice approaches to minimizing exposure, centralizing fraud intelligence and creating fraud centers of excellence, while ensuring a balance with customer centricity.