3 Forms of Digital Fraud Predicted To Be Trending In 2018
The fundamental of the fraud scheme remains the same, yet, current advanced technology changes the way fraudsters perform their actions. The rapid development of technology opens more opportunities for fraudsters. Therefore, it is important for fraud examiners to know the latest fraud techniques in order to design cutting-edge prevention schemes. Here are three trending forms of digital fraud that we summarized from various sources:
The appeal of virtual currency to the fraudsters lies in anonymity and lack of oversight by traditional financial institutions, such as banks. In addition to bitcoin, now appears various other alternatives, for example dash. This virtual currency previously named darkcoin offers more privacy than bitcoin. Dash uses a decentralized network server to redirect transactions and hide the identity of the user while simultaneously encrypting senstitive data as another anonymous. That way, investigators will have difficulty tracking user transactions.
This kind of fraud is done by utilizing social interaction usually through email, social media, and instant messaging to hack, spy or compromise sensitive data – identity theft. In fact, this type of fraud already exists, which is usually done via email.
For example, emails contain malware links that use the name of a reputable company /organization so as to make it believable. If the email recipient clicks on the link, then the malware is embedded in the device. Through the malware, the fraudsters can monitor and steal important data and personal users.
The presence of social media makes it easier for the perpetrators to commit this kind of cheating. The more information that is posted on social media, the more vulnerable users are from data theft and cheating of social engineering. Many businesses suffer losses due to hacking, corporate espionage and data breach. There is no other way than continuing to educate employees and consumers awareness about this kind of fraud and invest in an effective security system.
In 2018, the use of mobile payment is predicted to increase. Unfortunately, vulnerabilities in the mobile payment application are still not fully resolved, allowing players to move a step ahead in applying their fraud techniques. Mobile wallet apps are the most worrying because the identification and verification procedures are heavily dependent on the form of vulnerable authentication.
Fraudsters can steal mobile wallet user data and use it to transact. Inevitably, payment merchants and e-Commerce should improve their authentication procedures. One of them is by using behavioral biometric. Continuous authentication procedures using behavioral metrics provide enterprise security and user-friendly solutions to avoid mobile payment fraud.