Outsmarting Cybercriminals: Striking the Balance Between Customer Education and Fraud Technology

Online fraud has become an intricate web of deception, designed by fraudsters who are constantly pushing the boundaries of criminal ingenuity. It is like a game of cat and mouse, with these cybercriminals always on the prowl for new ways to catch their prey.
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Online fraud is the bane of businesses worldwide, costing them millions of dollars each year. The danger with modern online fraudsters is not just that they have access to sophisticated tools and technology, but that they are also highly skilled at exploiting human psychology to fool unsuspecting victims – making them one of the most elusive threats to online security.

As such, online fraud and scams are a global problem and even in the ASEAN region, we have seen these online crimes rise significantly over the years. For example, since 2020, over RM5.2 billion have been lost to fraud in Malaysia, the majority of which involved online scams. In Singapore, scams have become so rampant that it has overtaken most typologies, translating to a total loss of around S$1.3 billion in the past 2 years.

According to Singapore Police Force’s latest figures, the most common types of reported scams include:

• Phishing scams (7,097 cases, an increase of 41.3%)
• Job scams (6,492 cases, an increase of 29.9%)
• E-Commerce scams (4,762 cases, an increase of 74.5%)
• Investment scams (3,108 cases, an increase of 26.0%)
• Fake Friend Call scams (2,106 cases, an increase of 207.0%)

A similar trend can also be seen in the Philippines, where the top fraud threats reported last year include phishing, card-not-present fraud, and identity theft, which could lead to account takeovers and unauthorised transactions.

With stolen information readily available on the dark web, today’s fraudsters have access to a vast amount of personal data that they can use to commit various types of fraud, such as account takeover and synthetic ID fraud. Many of these fraud techniques leverage sophisticated techniques that can be very difficult to detect. As such, businesses must take serious measures to protect themselves and their customers from the potentially devastating impact of online fraud.

Education Is Crucial, but Not Enough!

While customer education is an important part of the solution to combat online fraud, it is not enough. On its own, customer education is like building a fortress with an unlocked gate. No matter how robust the walls are, if the gate remains open, it is all for nought.

Stopping fraud requires a dynamic approach that combines the best of both worlds: customer education as well as intelligent and reliable fraud detection technology. On one hand, education can help individuals understand the risks and make informed decisions, but it is not enough to counter the evolving tactics of cybercriminals. On the other hand, fraud detection technology can scan for fraudulent activities and halt them in their tracks, but it can only do so much without the support of customer education to strengthen the human element of security.

By combining the two, businesses can create a comprehensive security strategy that is capable of detecting and preventing fraud in real-time, while also empowering customers to protect themselves against potential threats.

Getting the Technology Portion Right

The question is, once your organisation has done all that it can to educate and inform customers, how do you ensure that your business is adequately protected from a technological standpoint?

As a global leader in digital identity verification solutions, Ekata believes that accurate and seamless digital identity verification and fraud prevention are key.

Being able to verify the identity of customers and ensuring that they are who they claim to be, empowers businesses to establish a higher level of trust and confidence in their online transactions, thereby significantly reducing the risk of fraud. At the same time, advanced fraud detection technology enables them to quickly identify and flag suspicious behaviour, so they can take proactive steps to prevent fraud before it occurs.

Ekata Identity Engine is a great example of the former. By leveraging sophisticated data science and machine-learning, Ekata Identity Engine utilises two proprietary datasets, the Ekata Identity Graph and the Ekata Identity Network, to transform core identity attributes into valuable insights that give businesses the ability to make accurate and informed decisions about their customers.

With its cutting-edge technology, Ekata is revolutionising the way businesses approach identity verification, fraud detection, and risk assessment, helping to create a safer and more secure online environment for all. To date, Ekata has over 2.5 billion digital interactions globally against fraudulent activities.

Do not let fraudulent activity harm your business. Take action today and click the link to learn more about how Ekata can help protect your business from online fraud.