The monetary benefit is among the reasons why cybercriminals commit fraud. Accordingly, because of the monetary nature of the financial industry as well as the e-commerce sector, these have become a primary target among fraudsters.
Criminals are notoriously creative, developing sophisticated techniques and utilizing modern tools to acquire sensitive information or infiltrate networks. They also have various ways to defraud individuals and organizations alike.
Identity theft, credit card fraud, and phishing are among the common types of fraud. Identity theft occurs when bad actors assume their victim’s identity to perform their illicit activities. Meanwhile, credit card fraud happens when criminals use their victim’s credit or debit cards or card numbers to deceitfully obtain money or other assets.
Phishing involves stealing user data such as login credentials or credit card information. Fraudsters pretend to be from a trustworthy organization and use email, text messages, or voice calls to ask their victims for information concerning their account, requiring them to confirm, update, or validate their details on their bank account.
Moreover, with the changes in consumer demand and shift in electronic channels, identity assurance is paramount, especially for e-commerce and financial enterprises operating online. Since these organizations cannot see if the ones registering for or accessing their remote services are legitimate clients, they often rely on their customers’ provided personal information and credentials to verify the legitimacy of their claimed identity.
Thus, companies must employ eKYC or electronic Know Your Customer protocol as part of their identity verification during remote onboarding processes. Consequently, they can also leverage modern identity proofing solutions that adhere to FIDO 2.0 authentication standards for their login procedures. FIDO2 authentication can enable organizations to more efficiently and securely confirm their client’s claimed identity.
Cybersecurity is essential in today’s digital world. This is particularly crucial for protecting digital financial accounts, such as cryptocurrency digital wallet. With FIDO2 authentication, users can replace their password-based authentication credentials with stronger cryptographic login credentials that enable them to seamlessly authenticate into their accounts and securely complete transactions.
FIDO2 login credentials offer real-time fraud prevention as these often require a second factor or biometric authentication to be unlocked. In addition, these on-device credentials are not easily stolen or susceptible to fraudsters’ circumventing tactics. This infographic from LoginID discusses the different categories of fraud and how strong authentication procedures like FIDO2 authentication boosts fraud prevention.
