Need for Keeping Corporate Infrastructure Up to Date

Fraud management softwares and anti-fraud platforms’ approaches are necessary for all businesses to detect and mitigate fraudulent activities causing huge losses.

FREMONT, CA:Fraud is one of the primary concerns for businesses of all shapes and sizes. Some of the main reasons behind this are the significant e-commerce rise and the adoption of online payment methods.

There are more attack vectors than ever, and the landscape is much more complex and continues to hold premises for fraudsters in every digital market sector. Although few economic activity areas are more prone to fraud and scams, every organisation needs some level of protection. The most targeted industries are banking, finance, government, manufacturing, healthcare, energy, and retail. Due to the nature of these industries and the elaborate nature of the fraud schemes that target them, there will be huge losses from just one event.

It is also important to note that different commercial activity sectors have diverse needs and priorities, including anything from ensuring that nobody harms their bottom line to requiring them to follow government-issued regulations for their industry.

 Financial services, including banking, are a perfect example of such a sector as it has to follow certain due diligence requirements by law, falling under fraud and risk management. For example, transaction monitoring indicates transactions over a certain amount of money and identity verification checks are two techniques that banks and fintech companies’ fraud management needs differ from online shops.

Clearly, fraudsters will be directly responding and adapting to approaches introduced over the past few years to keep our operations and customers safe. This increases the need for evaluating and enhancing one's current anti-fraud infrastructure.

The pandemic has exacerbated increasing online criminal activity. More consumers have turned to online shopping as an option but out of necessity. This led opportunists to partake in first-party or friendly fraud targeting various online businesses. Unemployed people in urgent need of money and unable to find new work offline have turned to online platforms and have been involved in reshipping scams or fallen prey to identity theft by scammers presenting themselves as recruiters. Virtually endless media outlets and professionals have named it an epidemic of fraud within a pandemic.

Fraudsters adapt by developing OTP (one-time password) interception bots that intercept and steal the additional authentication factors in 2FA and MFA setups, gaining access to ostensibly safe user accounts. The increased accessibility of deepfake-creation software is another approach stressing biometric authentication methods. Biometrics is also not a safe user authentication technique as it is combined with synthetic IDs and can easily fool organisations into believing they are dealing with a legitimate customer.

To fight these and other emerging threats, companies must develop strong and close partnerships with anti-fraud experts. Either having a fraud analyst team in-house or outsourcing the entire prevention programme, robust fraud detection and prevention software is crucial to any targeted company.