With another year down the calendar, volatile economic markets, uncertainty, supply chain snarls, and inflation are still making headlines. Similarly, the chances of cyberattacks and other fraudulent activities are sure to become more frequent. As technological advancements are opening doors to progress and economic uplift, industries are becoming vulnerable to criminal threats such as synthetic identity fraud, financial crimes, and others.
Where criminals are employing advanced techniques to avail maximum profitability and benefits illegitimately, industries need to integrate ID verification solutions. Furthermore, the need for efficient fraud controls is increasing. Considering this, AI-powered authentication of ID provides robust solutions to combat criminal activities. The blog sheds light on top fraud risks that require robust IDV checks.
Identifying Fraud Risks Businesses Anticipate with Identity Verification Services
With over 847,370 complaints, there has been a significant rise of 7% in cybercrimes. Moreover, the patterns and trends industries might anticipate are predicted to be different from the ones from past years.
Digital transformation is fueling the growth of fraud attempts by empowering criminals with various advanced techniques to breach the validation of identity. Furthermore, cyber bad actors are using sophisticated tactics such as extortion, phishing, synthetic identity fraud, and much more.
To combat these criminal activities, industries require robust identity verification services. With tools like real-time identification, robust validation, and biometrics, these solutions can safeguard businesses against fraudulent attempts. The next sections lines up prevailing fraud trends industries might have to face;
Cyberattacks on Networks
Network attacks are an advanced type of cyber crimes where bad actors target industries' websites. They escape digital ID checks and commit hacking attempts. Furthermore, with technologically advanced software at their disposal, criminals easily breach the network’s defence system. However, with robust identity verification in place, industries can mitigate the chances of cyberattacks. This category of fraud trends further includes the following;
Ransomware
An advanced type of cyber-extortion, ransomware refers to the process where attackers infect a particular system with malicious viruses. This helps them gain access to the system, after which they either encrypt the data or black access official to it. In order to release information, respective users, company owners, or other personnel pay a hefty cost as ransom.
Industries need to leverage identity verification services to ensure no unauthorised personnel are accessing their records or databases.
Mobile Malware
A kind of data scraping, mobile malware brings extended and adverse effects to industries across various regions. Furthermore, the absence of efficient identity verification mechanisms further makes room for cybercriminals to perform this malicious activity.
Fraudsters target electronic devices such as tablets, mobile phones, and smartwatches to steal confidential data. Therefore, industries require online global ID verification services and independent audits to ensure their information is not compromised.
Social Engineering Scams
These scams are the most common, however, the ways fraudsters carry them out are more likely to evolve. Criminals obtain information about individuals from the dark web or either through data breaches. They then use it to pose as legit bank representatives or officials of any organisation. Ultimately, fraudsters convince the user to make a payment or share account details.
Businesses need to integrate efficient identity verification services to track the activities of customers and in case of suspicious transactions, report regulatory authorities instantly. The AI-powered digital ID checks help finance, healthcare, and other sectors secure their operations against this type of fraud.
Synthetic Identity Fraud Attempts
Criminals commit data breaches and use stolen information to create synthetic identities. They then escape digital identity verification for fiance checks. Fraudsters leverage different forms of this type of fraud such as voice change, deep fake, and spoofing attacks. Hence, establishing effective biometric identity verification services serves as industries’ combatting measure.
External Data Breaches
Similar to the rest of other trends, data breaches are also seen rising at damaging levels. However, this concept is not new; criminals are getting sophisticated and making hard-to-detect efforts. Data breaches provide fraudsters with ways to steal confidential customer information and sell it on the dark web.
Criminals deploy several techniques, including document forgery, to illegally onboard business platforms. They later avail unauthorized access to confidential accounts and emails by passing digital ID checks. This further helps them obtain information regarding owners, stakeholders, employees, partners, and other affiliated entities to defraud the business.
Investment Fraud
Investment scam is one of the most alarming types of fraud. Criminals target highly volatile or flexible platforms such as crowdfunding, cryptocurrency, third-party payment service providers, and others to invest their ill-gotten funds. Due to the lax authentication of ID checks, industries are unable to detect these attempts.
Summarising the Facts
Industries are in dire need of integrating robust digital ID checks to place restrictions on fraudsters. The AI-powered solutions are streamlining industries’ operations by providing extra layers of accuracy and security. By deploying identity verification, the finance sector can monitor transactions, crypto exchanges can ensure secure trading, law enforcement will be able to safeguard confidential records, and much more.
