Don’t let the fraudster steal your Christmas!
As saddening as it is to say this, but as the technology advances, so does internet fraud. It’s like a never-ending competition between the good and the bad. Fraudsters continuously learn new anti-fraud techniques to come up with ways to bypass the system. However, those combating fraud must think like fraudsters to outsmart them!
Here’s another truth about our everyday lives – fraud on the internet is everywhere! Even if you haven’t thought about it, it’s true. Some people just pay more attention to it. For example, the people at Lendiscore, a Latvian fintech. Lendiscore operates within the realms of big data, machine learning, innovation, and predictive analytics. They provide to companies of various areas services like credit scoring, portfolio monitoring & analysis, tailored limit assignment, a variety of risk assessment models, and, of course, tailored fraud prevention models.
Fun fact about the Lendiscore team – they absolutely love Christmas! They want everyone to have a magical holiday, which is why they’ve prepared tips to safeguard against fraudsters ruining your Christmas! You will find this information useful if your company wants to make better informed decisions or if you’re an individual who is looking to heighten their data safety!
The best part? These tips will remain relevant even after Christmas!
But first! Why should you trust Lendiscore’s tips?
Just like fraud on the internet is multifaceted – the solutions to fight it must consist of not one, but of layers of sophisticated fraud prevention processes. But enough with the theory, let’s look at some real-life practice taking the financial sector as an example. How does Lendiscore make sure their clients, particularly lending companies, issue loans safely to real people, not fraudsters?
Face biometrics – Lendiscore employs cutting-edge technology to verify customers’ identities by analyzing facial features, ensuring loan applicants are genuine.
Digital persona analysis – combines device intelligence, email intelligence, and social network lookup to fortify the security measures for loan applications. With this method the user’s device is being checked for usage anomalies, email addresses are being validated and cross referenced, and social media accounts analyzed thus creating a digital persona that enhances fraud detection capabilities and serves as a more comprehensive assessment of loan applications.
Automatic information extraction – to reduce the risk of manual errors and to ensure accuracy in customer profiles advanced algorithms scan and extract relevant details from documents.
Income verification tools – these tools enable access to customer’s banking data, helping lenders verify income, expenses, and overall financial behavior. This is an extremely important tool not only in fraud prevention but also in risk underwriting. For instance, if the data suggests irregular financial behavior, it raises a red flag for potential fraud. Simultaneously, it helps in determining the customer’s creditworthiness.
Maybe you already know this, but it’s never a bad thing to repeat old knowledge, so here goes. Number one thing to do for building a bulletproof fraud prevention system is getting the best-in-class specialists! These people will be the bricks and the stones of the company’s anti-fraud foundations, they will set up the perfect system, they will monitor transactions, analyze patterns, stay ahead of the ever-evolving fraud techniques, and instantly notice when it’s time for improvements. If you have people like this on your team, firstly, never let them go, and, secondly, rest assured because your company is secure.
Another crucial aspect of a robust anti-fraud system is maintaining a continuous state of curiosity and adaptability. The best fraud prevention systems leverage the latest, cutting-edge tools. Technology in fraud prevention is constantly evolving, with new and advanced innovations emerging almost every minute. Proactivity in staying abreast of the latest developments ensures your company remains resilient against the latest fraudulent tactics.
While busy at employing great specialists and looking for the latest cutting-edge technology, don’t forget to be an active member of the anti-fraud community, too. Gatherings like conferences and industry events provide an opportunity for professionals to share insights, discuss the latest trends and learn from other experiences. The outcome of this networking activity will be two things. First, your company will be informed about the industry best practices. Second, you will help boost the financial sector’s collective capability to combat fraud effectively.
If you’re an individual that just wants to be safe
- Protect your personal information: be cautious about sharing sensitive data online, especially on social media platforms. Refrain from sharing your full address, phone number, date of birth, or financial information unless absolutely necessary!
- Be creative with your passwords: create unique and strong passwords for your online accounts, and avoid using the same password across platforms.
- Two-factor authentication: whenever it’s possible, enable two-factor authentication for your accounts to add an extra layer of security.
- Say “no-no” to public Wi-Fi: as tempting as it may sometimes be to connect to a public internet connection you should always bear in mind the risks that this might bring. Your data might get stolen! But if you really must use that public internet, then at least avoid conducting financial transactions.
- Phishing: be skeptical about strange emails, messages or phone calls asking for personal data. Don’t click on random links! If someone asks for data, verify the legitimacy of the communication by contacting the organization directly via official contact details.
- Keep track of your financials: keep a close eye on your bank and card statements. Report any unauthorized transactions to your financial institution!
- Secure your devices: use passwords, pins, or biometric authentication to lock your devices.
- Beware of public charging stations: avoid using public charging stations or USB ports as they can be vulnerable to data theft. Carry your own charging cables and use wall outlets when possible.
Following these tips will ensure that some online fraudster will not become the Grinch that ruins your Christmas! Ho-ho-ho!