The threat of cybercrimes from hackers and online fraudsters against enterprises has dramatically escalated in recent years. Technology, fraud methods, and the essential defenses against attacks all progress at an astounding rate. While governments throughout the world struggled to contain a pandemic of a magnitude we had never seen before, fraudsters and cybercriminals were having a field day. They viewed it as a chance where they stood to gain greatly and there was little chance of getting caught.
Digital identities being accessible on mobile devices would simplify the onboarding and authentication processes for digital applications and aid in thwarting account takeover fraud attempts. Once a customer has been confirmed, they can use their digital identity whenever and wherever they want online to sign up for or authenticate with any application.
Consumers and businesses are now more willing to collaborate with non-financial institutions. These businesses have better access to consumer data, which contributes to the creation of an excellent user experience and increases brand loyalty. Although these embedded finance solutions offer opportunity for financiers and value to customers, they also draw the attention of cybercriminals. These fintech applications will get much more intriguing for hackers as they gain popularity because financing apps frequently involve payment transactions and access to bank accounts.
Keep the proverb in mind when you create your annual plans. Security is a journey, not a finish line. We have the resources now to combat fraud in 2023, even though there are some aspects, like AI regulation, where we must wait to see what the final legislation comprises. Because of the prevalence of digital financial services, fraudsters will continue to pay them more attention.
To safeguard users from fraudulent activities, however, multi-factor authentication with biometrics, app shielding, push alerts, digital identity, and multi-factor authentication with digital identity can all be applied.