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Experts have also observed that fraudsters are now in the FinTech industry, even running their FinTech businesses. Hence, users must be careful. In 2021, 85% of financial institutions worldwide experienced fraud in the process of account opening. Stories exist where scammers steal people’s personal information and credit details by breaking the anti-fraud system, using the victim’s bank account and online wallet to buy an existing account on the black market. Another form of cyber fraud is called “social engineering” where attackers manipulate their victims into releasing sensitive details. For instance, attackers might send interview invitations designed to look like well-known companies to their victims. Victims follow phishing links that grant the attacker access to their devices or submit their data through a questionnaire that looks like an HR website but is a payment system. These days, cyber fraudsters are employing the use of more sophisticated technologies like deep fakes. In this article, I discuss five effective ways to prevent fraud in FinTech.
Employ Liveness Detection Technologies
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There have been cases where criminals use stolen selfies, wax figures, and other mediums to gain access to user accounts. On the other hand, with a liveness detection request, you can ask users to make real-time actions such as asking them to make a circle with their heads to authenticate real, present people.
Monitor Customer Behavior
Employ Biometric Security
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Furthermore, with biometrics, for example, fingerprints, you can easily monitor your client’s login patterns and spot unusual behavioral patterns. For instance, a user in Nigeria might order a large piece of furniture from a large online marketplace and on the same day make a large purchase from China. This is very suspicious. Moreover, there is a list of countries with a high risk of fraud, so it’s useful to keep an eye on the IP location with the help of AI.
Basic Web Safety
- Opening digital wallets by connecting to public WiFi
- Clicking on unfamiliar links
- Leaving cards exposed
- Trusting well-known companies that send job offers in return for a registration and personal data submittal
Choosing The Right Partner
Final WordsClients are more comfortable when they enjoy seamless and secure services through your FinTech apps. Therefore, FinTechs that invest greatly in cybersecurity will win the confidence of users and cause more financial inclusion across the board. Featured Image Source: Built In
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