Top 3 Digital Fraud Prevention Trends for 2022
2021 has been another memorable year. Organizations that have implemented remote processes in response to the pandemic have spent the past year optimizing and strengthening their systems to ensure a positive and secure customer experience.
However, with identity theft, payment fraud, phishing and other financial crimes at an all-time high, the job of digital security is never done.
In this article, we have collected the three predictions that will shape the security landscape in 2022.
1. Digital identity initiatives will increase for governments, states and the private sector
Governments around the world are launching digital identity initiatives that allow users to access a range of services through online or mobile applications.
Singapore, the United Arab Emirates and Australia have already released a digital identity system, and the EU is also moving in this direction with the revision of eIDAS and the announcement of the European digital identity.
The availability of digital identities on mobile devices will facilitate onboarding and authentication to digital applications and help combat fraudulent account takeover attacks.
Once a consumer is verified, they can use their digital identity anywhere, anytime online to onboard or authenticate to any application using digital identity verification.
Any application dealing with digital identities will need to adapt and support new government digital identity schemes in order to be relevant in the market.
Examples of sectors include energy suppliers, banks, postal services and telecommunications operators.
Furthermore, the use of qualified electronic signatures will become more relevant as citizens will be able to use their digital identity to legally sign contracts online.
This was further developed in our webcast discussing the “The role of digital identity in account opening and onboarding”.
2. Security measures for integrated financing offers
Non-financial businesses are able to offer financial products tailored to their community, such as payday loans for easy and reliable access to credit or specialized digital platforms for truckers offering credit for fuel financing or trucking. vehicle insurance.
Analyst firm Juniper Research expects the value of the integrated finance market to exceed US$138 billion in 2026, up from just US$43 billion in 2021.
Consumers and organizations have become more open to working with non-financial institutions.
These companies have greater access to consumer data, which helps provide an optimal user experience and leads to greater brand loyalty.
However, while these in-app financing offers present value for consumers and opportunities for financiers, they also attract the attention of cybercriminals.
Since funding apps often include payment transactions and bank account logins, these fintech apps will become even more attractive to hackers as they grow in popularity.
Security will play a key role as the market matures. Only companies that combine a frictionless user journey with a secure environment will stand out.
Functionality and usability will certainly be important, but organizations that fail to protect their websites and mobile apps will quickly lose brand reputation and customer base.
3. Cryptocurrency fraud will skyrocket
Crypto exchanges have grown very quickly from open source without taking their security ecosystem or fraud management seriously.
Since the platforms are neither regulated nor secure, there is no guarantee that customers will get their money back after a hack.
At least 32 incidents of hacking and fraud have already taken place in 2021, with a total value of nearly US$3 billion.
Undoubtedly, the number of cryptocurrency hacking incidents and fraud losses will break records in 2022.
The most common types of cryptographic hacks are phishing and social engineering attacks, although the technology to protect customers against these attacks has been around for years and is used by traditional banks.
Push notifications instead of one-time passwords sent via SMS can prevent SIM Swap attacks. Also, app shielding can protect wallet apps from cloning and stealth mining.
The only way to mitigate these attacks is to introduce more regulations and rules, such as PSD2 and the requirement for strong customer authentication.
For clients, on the other hand, it is essential to select a trading platform that offers premium security capabilities.
Learn about top digital fraud trends and predictions from OneSpan here.