Just last year, the Huffington Post reported that identity fraud had reached epidemic levels, with four out of five (83%) of those thefts taking place online. “Epidemic” might sound like an exaggeration, but it really is an apt term to describe how broad the issue is and how much damage it does to businesses and individuals.
In fact, identity theft has been estimated to have cost US business $107 billion between 2011 and 2017. Again, while that number seems almost surreal, it is worth remembering that it is often small and medium sized businesses that bear the brunt of this cyber-crime.
Securing our own devices important
Of course, it is often pointed out that the most important way to stop online fraud is by taking steps ourselves. We have a duty to our own online protection by implementing safeguards, most of which cost little time and no money. Indeed, despite so many warnings, we still continue to make simple mistakes like creating passwords from words and combinations that fraudsters can easily retrieve.
But, even if we follow the steps to protect our online data, fraudsters have still demonstrated that they can still strike should they see the slightest chink in our armour. Take a moment to consider the wealth of information that could be found from someone through social media – names, addresses, dates of birth, mother’s maiden name and so on.
Social media faces unprecedented challenge
Indeed, tracking of social media has been cited as a way for businesses to combat fraud, with banks and organisations checking Facebook and Twitter to see if the person in question is ‘real’. But, it has become something of an understatement to say that fake accounts are easy to make. For example, Facebook is estimated to have deleted up to 583 million fake accounts in the first three months of 2018 alone.
The good news, however, is that the technology created should always stay one step ahead of criminal activity, but only if it is wholly embraced by businesses and individuals. Increasingly, financial institutions are turning to solutions like au10tix ID verification for ID auto-recognition, allowing them to protect the companies and their clients from fraud.
Facial recognition technology will soon be everywhere
Certainly, you’ve probably seen similar tech to that used with AU10TIX before, with facial recognition and other biometric solutions now being more common in smartphones and computers. Smaller businesses are being encouraged to incorporate these measures into their systems, with anti-fraud measures such a key part of customer safety.
There is a massive push by banks to use these types of biometric-style identifiers to ensure that money laundering and fraud is combatted effectively. Moreover, one can argue that the benefits of embracing biometric and facial recognition software can have tangible benefits that go above and beyond security. Take, for example, the 2014 report by Centrify that concluded businesses lose $420 per annum per employee due to time wasted over lost passwords.
There are, of course, so many other ways that tech is combatting fraud, including predictive analytics, image verification and AI risk technology. It’s all part of a drive towards living in a smarter, safer society, one where business can thrive in efficiency to enrich our lives. Knowing your customer has always been at the heart of business safety and success; the digital age is embracing that mantra in new and innovative ways.