Fraud is an activity in which someone steals money, assets, or personal information from the victim in the form of fraudulent or unauthorized transactions, lost or stolen merchandise, or false request for a refund, return, or bounced checks.
Criminals have different ways of committing fraud. Here are some of them:
Phishing – This is a social engineering technique where fraudsters pretend to be a trusted entity and convince the victim to open a fraudulent instant message, text message, or email. Fraudsters use phishing to steal user data such as login credentials or credit card information.
Friendly Fraud – this happens when customers falsely initiate chargebacks.
Pagejacking – criminals use this type of fraud to illicitly redirect traffic from the original website to the copied web pages.
Merchant fraud – in this type of fraud, malicious actors set up merchant accounts for a business that appear legitimate. They do this to charge stolen credit cards.
Fraud has long been a problem in different business sectors as well as to consumers. It continues to challenge customers and enterprises, particularly those in the financial industry. Hackers are keeping up with the evolving trends and practices in every sector, becoming more creative with their tactics to infiltrate business systems and steal information and money.
To reduce fraud risks, various organizations now implement electronic Know Your Customer or eKYC procedures as part of their identity proofing measures. Accordingly, enterprises offering financial services or cryptocurrency digital wallet products must leverage modern authentication solutions to further bolster their cybersecurity measures.
They can say goodbye to their inefficient identity verification measures and embrace identity proofing solutions compliant with FIDO 2.0 standards for stronger authentication. Conventional identity authentication methods like typing passwords are not enough to impede fraudsters from accessing user accounts or circumventing systems.
FIDO2 authentication solutions leverage mobile and biometric technology, enabling enterprises to employ more robust cybersecurity measures in their systems and integrate biometric authentication into their platforms.
With FIDO2 login, platform users can opt for passwordless login to conveniently authenticate into their accounts and securely complete transactions. To find out more about the categories of fraud and how to reduce the risks of falling victim to them, read this infographic by LoginID.