The arrival of the digital age has brought with it a large number of advantages for all of humanity, such as the internet or cryptocurrencies. However, it has also allowed the evolution of criminal strategies, and thus, fraud attempts that moved from analog to digital.

It’s because of this new reality of online crime that, today, we will talk about four tools to prevent digital fraud. We hope that you’ll use them to unlock borderless growth in the safest and most reliable way possible.

 “If your company spends more on coffee than on cybersecurity. It will most likely be hacked…” Eric S.Raymond.

What is digital fraud?

Let's start by laying the foundations on what experts have defined as digital fraud, and then provide you with the necessary tools in order to prevent it. Well, with an issue as important as cybersecurity, understanding what’s the danger in order to really find a solution is essential.

In a nutshell, digital fraud is nothing more than the use of a computer, and the various means available on the internet, by criminals to deceive or harm a company, or person, in order to obtain monetary gain.

And we are not talking about little things, because according to data from the Association of Certified Fraud Examiners (ACFE), 5% of all income in the business sector was lost due to online fraud in 2020. In addition, an average of $145,000 was stolen during the period, according to ACFE.

So, it seems like a good option to start investing more in cybersecurity for your business and end user – and a little less in coffee, right?

What are the types of online fraud?

With this in mind, the next question that we might ask is this: What methods do criminals use to perpetuate online fraud?

Unfortunately, there are a myriad of types of digital fraud. And as technology rapidly progresses, so do new methods for hackers and criminals to try to get past business security barriers.

Among the most common, we have:

  • Phishing: The identical copy of emails, text messages, web pages created by criminals to obtain private data, corporate secrets, keywords, bank accounts and more.
  • Identity theft: The use of false or edited IDs to create fake accounts, apply for loans, or use a company's services for criminal purposes.
  • Theft of end-user information: By convincing victims to provide their passwords, criminals log in and steal money or information from unsuspecting users, such as credit card numbers and social media passwords.

(That's how easy someone can steal information from your business or end user)

The numbers of Digital Fraud keep growing

But, that’s not all, since the number of digital frauds hasn’t stopped increasing year after year since the internet’s arrival in 1990. According to a PwC survey, 51% of 1300 firms surveyed in 53 different countries had lost money to digital fraud in 2020, while in 2021 that number rose to 57%.

Hackers and unsuspecting customers are the main sources of digital fraud. Are you ready? Source: PwC Global Economic Crime and Fraud Survey 2022

Yet, the United States Federal Trade Commission (FTC) received 1.4 million complaints for identity theft and 2.8 million for digital fraud in 2021, for nearly $42,000 million dollars of lost capital.

Investing less in coffee seems more and more tempting, doesn’t it?

Four tools to keep your users, and business, safe

We have finally reached the main topic of this content. Nevertheless, without presenting the monetary fraud problem and its impact as a whole, these four tools could’ve gone unnoticed. Now, however, we are sure that this won’t be the case.

1) Identify weak spots:

Things that digital fraudsters can use in your business products and cause monetary or legal damage to your customers or company.

For example, from the information provided in this content, you know that a large part of the cyber fraud attempts will come from the same users to whom you give access to your platform.

Do you have the tools to check if your users are trusted people, that their documents are not false and that they are using their true identity?

2) Consolidate and centralize your customer data:

One of the most common problems with firms that make the decision to verify their users manually and on their own is the inability to track their user’s behavior and generate alerts quickly enough to prevent online fraud attempts.

Therefore, it’s important to have an ally that not only evolves as fast as the methods that criminals use, but one that also gives you the opportunity to scale in the same proportion as your business needs, and not the contrary.

3) Grant a safe login for your users:

As stated above, the method most used by criminals is to steal access codes from end users.

So, it’s recommended to use logins with biometric technology. With this, no matter who has a user's access codes, if their face or fingerprint doesn’t match your records, you will have nothing to worry about.

4) Know your customer:

When you know perfectly who your user, client or worker is, many headaches disappear. In addition, you’ll have more time and resources at your disposal that can be invested in further product development.

Although it may sound very cliché, one of the main actions is to ensure that the people who work with you, or potential new customers who will use your products, are really trustworthy people. That’s why it’s important to verify their criminal record, check that their phone number or email doesn’t pose a risk of fraud and if their IP and GPS location match.

"My message to companies that think they haven't been targeted by fraud or hackers is: You're not looking hard enough" – James Snook.

All in one tool?

Fraud prevention has to be taken seriously as the digital world continues to accelerate towards growth and progress, and fintech, cryptocurrency, lending and even banking companies are increasingly part of the daily lives of hundreds of millions of people.

In addition, in an increasingly globalized world where a solution developed in Mexico can be used by people from Argentina to Spain, surges a complicated and labyrinthine underworld of regulations and compliance issues to become another factor of headaches for most companies, regardless of their size.

However, with MetaMap you will have everything in a single tool, not just a solution that will help you fight digital fraud or scam attempts against your business, such as the following merits:

  • Location Intelligence: Through GPS technology and IP verification you will be able to know the exact location of your user and limit access to your business by geographic zones.
  • Biometric Verification: With this merit you’ll not only be able to verify that your user's face matches their identity documents, but also compare it with government data sources.
  • Document verification: Make sure that the documents uploaded by your users are true and haven’t been modified. Also, verify that they’re not on any watchlist worldwide.
  • More than +25 fully customizable merits to meet your business needs.

At MetaMap, we have the experience and all the necessary tools for your business to comply with KYC and AML regulations, both locally and internationally, depending on the countries where you want to provide your services.

As we’ve said before, MetaMap is that ideal ally that allows you to centralize all the identity verifications that match your business’ needs and scalability goals. What are you waiting for to join Binance and Allianz to unlock borderless growth?