Digital Fraud and How Businesses Can Prevent It
Due to the COVID-19 pandemic, most businesses have been forced to adopt the use of digital technology to keep up with the competition. Those who are still reluctant to adapt risk losing their business to competitors who are more open to providing a first-class digital experience and innovation.
While this innovation has had a massive impact on the way people do business, it has also had an impact on how exposed sensitive data can be to fraudsters. As businesses go online, digital fraud has increased as fraudsters are also becoming innovative.
Some of the reasons digital fraud has increased include:
- More automated botnets
- Cross-border transactions have increased
- More goods and services are sold online
- Sophisticated synthetic IDs
- More transactions being made through mobiles
Fraud Prevention Strategy Through Document Verification
Fraudsters thrive in the digital environment since they are continually developing new ways to attack both customers and businesses. According to the FTC (Federal Trade Commission), in 2020, consumer losses due to digital fraud totaled more than $3 billion. This is alarming. Mobile fraud where fraudsters are able to impersonate a customer or gain access to confidential data is the leading fraud today.
One of the most effective ways to prevent digital fraud is through document verification. Document verification aligns well with the regulatory requirements of ensuring KYC compliance. Most businesses are adopting document verification because it provides accurate information about a customer to ensure their ID has not been involved in some criminal activity or been digitally manipulated.
Online businesses need to create strong trust with their customers and document verification can help with that. Also, when you combine this technology with biometric verification, the system will allow you to find out if an account holder is genuine. Document verification systems are great for businesses that need to ensure their customers’ data remain safe.
How Can You Protect Your Business Against Digital Fraud?
Keep in mind that fraudsters are not only on the rise, but they are also getting smarter. This means that you need to change the way you tackle digital fraud. To protect yourself and your customers, you need to partner with the right company that has the latest tools to minimize the risk of digital fraud.
Investing in document verification systems will benefit you in more ways than just help prevent digital fraud. These systems are designed to simplify the user experience. Additionally, they are not only affordable in the long-term but help to prevent non-compliance which can cost you money in terms of fines.