Identity Thefts are the reason for most online frauds every year. With the increased potential risk of most consumers on the internet, fraudsters have developed new ways to impact the audience online.
Cyberattacks are getting worse day by day as the stats show an increase in the number of identity thefts. in 2020 304 million users were attacked worldwide with more than 127 new types of ransomware identified. Some more dangerous facts show that almost 10% of households are affected by cyber attacks in the United States!
Has your business also fallen to Online cyber-attacks that compromised the integrity of the systems? In this blog, we will discuss the most effective ways to prevent online fraud and protect businesses digitally, But first, let us broadly understand the concept of Identity theft.
What is Online Identity Theft?
Identity theft is the act of stealing someone’s identity by pretending to act on behalf of someone else to gather the personal resources of a person, business, or organization. The scammer tries to breach user information to gain access to their resources.
Identity theft purposes include:
People often use multiple identities to avail the medical benefits of other users such as free check-ups and medications.
Most users use children’s identities for personal gains, mostly to get close to the minors for exploiting their personal space.
With the advancement of technology, scammers are attempting identity theft to gain access to the user’s digital assets such as cryptocurrencies and NFTs.
How to Prevent Identity Theft Digitally?
Most industries are working to maintain a secure and protected environment to ensure the identity of the customers and businesses. Many checks are performed at different levels with various operations for the purpose of identity verification. Major processes which prevent online identity theft.
KYC Identity Verification
The identity verification service is a very useful method to verify the identity of an organization, business, or client.
Biometric verification is a sub-process of KYC compliance. Most industries are moving towards Biometric verification to ensure the credibility of the user. The biometric process involves fingerprint scanning and other biometrics such as face scans and voice recognition.
To prevent identity theft online, the document verification process is followed for validating a client with the help of legal documents and papers. Document verification is a major part of the KYC Cycle which can prevent identity thefts online.
The Address is important as legal documentation to prove the originality of the user. The address is verified for clients and businesses for real locations.
Two-step authentication is an additional protection layer that can ensure identity protection.
Another major aspect of ensuring identity is the consent verification process. It provides a major check whenever signing new policies and agreements.
As new technology is getting its hands on the digital world, Identity fraud is increasing with new tricks of the attackers to compromise the online system by means of their own. To tackle identity fraud online. Cyber authorities are developing new procedures in order to avoid the risks of identity theft and data leakage.