Categories of Fraud
In this digital era, cybersecurity is paramount, particularly when protecting digital financial accounts or cryptocurrency digital wallet that hold crypto assets. And there are various ways in how financial organizations can bolster their cybersecurity measures and reduce their fraud risks.
Staying informed of the latest fraud types and techniques used by cybercriminals is one of the ways they can reduce their fraud risks. As companies become more functional and connected with their customers online, malicious individuals develop sophisticated techniques to get private information, circumvent networks, and steal money.
Two of the most common types of fraud are phishing and identity theft. Phishing happens when fraudsters pretend to be a reputable entity and convince recipients to open fraudulent text messages or emails. This leads to malware installation, freezing the system, or disclosing of sensitive information, such as the victim’s login credentials and credit card information.
Meanwhile, identity theft is the type of fraud that involves using a victim’s personal information to steal money or conduct other fraudulent transactions.
Moreover, organizations can also implement more robust identity proofing processes to reduce their chances of fraud further. They can employ eKYC (electronic Know Your Customer) guidelines to prevent malicious individuals right at the beginning of the onboarding procedure.
They can also leverage more robust authentication solutions to bolster the security of their accounts. Passwords and PINs are no longer enough to keep fraudsters at bay. In fact, these conventional authentication methods are easy targets for cybercriminals.
Financial institutions can replace these ineffective authentication measures with FIDO 2.0 compliant login solutions that leverage mobile and biometric technology. Adding biometrics as part of their identity authentication procedure enables them to enhance their network’s security and confirm that the individual trying to access their services is their actual customer. In addition, biometric authentication allows users to opt for passwordless login. This enables them to access their accounts seamlessly and complete their transactions securely.
Knowing more about fraud and how they happen can help organizations prevent falling victim to them. In addition, enterprises conducting their business online must also employ more robust cybersecurity protocols to further prevent fraud in their networks. Here is an infographic from LoginID that discusses more on the matter.