Identity fraud: The debt collection industry clarifies.

In cases of identity fraud, EOS does everything in its power to help the victim of alleged fraud. Andreas Behmenburg, Regional Sales Manager for EOS in Germany, explains the company’s options.


In what area does EOS use software for identity verification?

We use the RISK IDENT product DEVICE IDENT to protect the logins to our client portal “EOS Space.” It lets us look at such criteria as browser, language setting, keyboard layout and country of origin to check if the login attempt was made from an authorized or approved device. The two-factor method enables us to prevent access by an unauthorized person.

So the RISK IDENT software is not used in pure debt collection?

Correct, because once a case has landed on our desk, it’s already too late. The goods have been shipped, the money has been paid – in short, the damage to the retailer or the bank has been done. Therefore, it is important to conduct the fraud check and the credit check at the moment the transaction occurs, the order is placed, or the loan is granted.
Andreas Behmenburg, Regional Sales Manager bei EOS Deutschland GmbH
We have raised our staff’s awareness of the issue.
Andreas Behmenburg, Regional Sales Manager for EOS in Germany

Let us assume that EOS contacts a supposedly defaulting customer because of an open cell phone bill, but the invoice is the result of identity theft. What’s the legal situation in this case?

That’s a highly current issue. The German Federal Court of Justice issued a ruling on the matter just last October. It decreed that a debt collector acts unlawfully when it writes to presumed customers who have become the victims of identity theft and with whom the collection company in fact does not have a contractual relationship. Whether or not we have erroneously assumed that a contract had been concluded is irrelevant. In other words, collection services would, in theory, have to contact each person by mail or phone in advance to ask whether he or she had become the victim of fraud. Given the large number of cases every day, that’s just not feasible. As far as our industry is concerned, legal clarification is required (see the BGH ruling of 10/20/2021 (ref. no. I ZR 17/21)).

What does EOS do in such cases?

We have raised our staff’s awareness of the issue. If fraud has occurred, the objective is to clear up the problem as satisfactorily and quickly as possible in the interests of the consumers who have been deceived and the companies involved. After all, charges for collection processes should not accrue in connection with fraud. We immediately inform our clients, who then start criminal proceedings if possible. Taking legal steps can at least put impostors on notice.

Want to learn more about how EOS helps victims of identity fraud? Feel free get in touch.

Andreas Behmenburg, Regional Sales Manager bei EOS Deutschland GmbH

Andreas Behmenburg
Head of Sales

Sabrina Ebeling, People Lead Corporate Communications & Marketing at EOS

Sabrina Ebeling
Corporate Communications & Marketing

Phone: +49 40 2850-1480

Photo credits: EOS