In recent years, there has been a significant increase in online fraud and cybercrimes. Despite the fact that technology is improving every day, fraudsters have been even more careful in defining new schemes to hack into the systems. According to studies, online frauds have cost around $2.4 trillion to different online businesses in 2018.
Many organizations are still under risk of threats and frauds and it can only be prevented after having a clear idea of the techniques and technologies that fraudsters employ. Once you have a clear knowledge of the ongoing fraud trends, then it is easy to take preventive measures. Here are some top digital fraud trends that have put the reputation and security of small as well as large-scale organizations/businesses.
Massive Data Breaches:
With the advancement of technology, hackers have become more sophisticated and intelligent to break into secure systems resulting in higher frequency attacks and that too on large platforms. Last year, there was a facebook massive breach scandal in which around 87 million records were breached. This scandal didn’t only affect the shares, reputation, and credibility of the company but it was also bad news for the users whose information was accessed by the hackers making them vulnerable to a different kind of fraud.
Chargebacks Plaguing E-commerce:
The most common fraud trend that E-commerce business or sites face is Chargeback. Just keeping the database secure doesn’t mean that they are safe from chargebacks. According to a study, e-commerce business loses around $80 billion annually. Coping up with the pace of new technology trends, every day millions of new customers purchase something online. No doubt it has made E-commerce sites one of the leading businesses across the globe. But on the other hand, it has also opened more ways for criminals and fraudsters.
From the last few years, cryptocurrency and online wallets have slowly started taking over the traditional banking process and techniques to make the financial instructions quick and easy. Due to this reason, most of the identity and documents verification isn’t done physically which makes the business vulnerable to fraudsters attacks and they can easily enter the fake or spoofed if to make the account.
How to Prevent:
Protecting the data is essential for the companies no matter if the data is of one user or million users. Most of the time the hackers use phishing emails to get the information from the employee of the company. So, these types of fraud can be prevented by applying penetration testing and security audits; most importantly training the staff properly about social engineering methods that how hackers phish their information without their knowledge.
The businesses need to understand that not all the chargebacks are valid one some can be termed as friendly frauds which means that the actual cardholders claim chargeback in the greed of free incentives or due to some misunderstanding. It can only be prevented using Proper KYC verification services for E-commerce websites. KYC services come up with different verification techniques e.g. face verification, ID verification, address verification, etc. which limits the fraudsters from accessing the website and claiming chargebacks in real-time. Not only for e-commerce but KYC services are best to for any financial sector to verify the real users.
No matter how much technology improves, the fraudsters always find a way to cheat your security protocols. In order to prevent them from causing harm to your business, it is important to keep checking the latest fraud trends and their preventive solutions available in the market.