Online Fraud Prevention Steps That Businesses Can Adopt

6 Steps of Online Fraud Prevention for Businesses

With the rapid development in the online retail industry and banking industry, there is an increase in the fraudulent activities accordingly. New and emerging technologies are on one side serving the businesses in multiple ways, but on the other side, they are giving them a tough time. Fraudsters find loopholes and vulnerabilities in the system and exploitation allows them to perform malicious activities. These activities result in heavy fines and risks.
A huge amount is spent on online stores. According to a study, global e-retail sales amounted $1.9 trillion in 2016 which is estimated to rise to $4.06 trillion in 2020. Fraudsters have endless opportunities in the face of online stores and businesses. The businesses failed to comply with the security measures are prone to the cost of loss. Every $1 of the fraudster orders cost an additional of $2.62 to online stores and $3.34 in case of transaction done through mobile phones. The countries which issue cards are 2-3 times more affected by online fraud than the ones who do not. Credit card fraud is the most common. Fraudsters use fake credit card information and perform online transactions which at the end costs the online business.
How can online businesses prevent themselves? What steps should be taken into consideration? The techniques of fraudsters are getting advance. Therefore, the pace of online businesses to introduce betterment in the system should also increase. For any business, it is important to take serious steps in order to prevent themselves from online payment scams and credit card fraud.
Following are 6 steps that can ensure safety in their customer onboarding process:

Need of Online Fraud Prevention System


Need of Online Fraud Prevention System

54% of businesses are somewhat confident about the security of their system. Only 40% are confident, who say that their system is unaffected by any attack or bad activity. The reason is that most of the businesses give more importance to conveniency than security. These businesses then face heavy loss which costs much more than the cost of security adoption.

Customers need Protection

66% of the customers want a secure online Fraud Prevention System. They want their identity and personal information to be protected and not to be used in any malicious activity. These concerns demand online marketplace to take serious measures in order to prevent the data and money of their customers.

Prevent Money Laundering and fraudulent transactions

67% of fraudulent transactions remain undetected. Who belongs to these transactions? What is their identity? These questions should not remain unanswered as they carry a heavy cost. For money launderers, the online marketplace is an attractive target which can help them in money laundering.
There should be proper AML checks in the system which catches them on the spot and suspend their activities and transactions.

Conclusion

Fraudsters activities fluctuate with respect to time and behaviours. These activities must be monitored actively and so the adoption of updated technology should be ensured. The above steps are the primary ones which need to be the part of any online business. The need for security measures varies according to the business type and fraud potential risks associated with it. To mitigate these risks, a proper protection curriculum should be shared in the business environment. This can help in remarkable business development with respect to both revenue and reputation.

Looking for Online Fraud Prevention Here Is What You Can Do

Looking for Online Fraud Prevention: Here Is What You Can Do

In an increasingly digital world, it is extremely important for online businesses to identify fraudulent activities happening in their system. In an online marketplace, a large number of transactions take place every second. Among those, 67% of fraudulent transactions remain undetected which results in heavy loss. According to the end 2018 record, online fraud has reached a loss of $6.4 billion. Fraudsters are always in search of the vulnerabilities in the system, they exploit the entry points and perform malicious activities. Online businesses if on the side focus on the better user experience in customer onboarding, on the other hand, they lack the security measures need for Online Fraud Prevention. It is a crucial need for banks, financial institutions, and online marketplace to reduce the risks of online payment scams and introduce high-level security in their system.
xOnline frauds are of different types. The purpose and intention behind each fraud could be the same only the way is different. Some common types are:
Identity Theft: Cybercriminals attack the system to get the personal information of the people and use them maliciously be assuming it to be someone else’ identity.
Credit Card Fraud: Fraudsters make a purchase into the weak website, enter all the essential information and fool the system using the credit card they have stolen.
Email Phishing Fraud: The fraudster sends an email to the victim (could be a bank employee) which appears to be an official email from some financial authority. This email contains the link which redirects the other person onto a login page of the bank appearing to be exactly the same as their official website. Once the employee enters all login credentials, the scammer gets all the personal information and uses the account for malicious activities.

Industries Affected by Online Fraud

63% of industries have experienced fraudulent online losses. With industrial digital transformation in both front-end and back-end operations, there is a need to take high-security measures against online fraud prevention. 75% of online businesses want a secure online system. For this to achieve, online businesses require solutions that enable trust within and out of the organization. Some of the major industries who faced online fraud are:

Online Retail Industry

In 2019, e-commerce sales are expected to account for 13.7% of retail sales worldwide. E-commerce sales are estimated to be increased by more than 240% which is $4.48 trillion by 2021. If on one side, this massive amount shows the demand for e-commerce on the other side, there is a record of 6% online frauds in the retail industry. The transactions happening in bulk are the great opportunities for the fraudsters to enter into the system. In the retail industry, the highest fraud is inventory fraud and due to a fake credit card. It is necessary for the online retail industry to secure its system in order to prevent online fraud.

Gambling Industry

Today, the gambling industry is generating a huge revenue which was $44 billion in 2016 and is expected to be $81 billion by 2022. The gambling industry is a very tempting platform for money launderers and cybercriminals. A recent report shows an $82 billion loss in the gambling industry due to Card Not Present (CNP) attacks. Also, 3.5% of all online payments that take place are fraudulent. The gambling industry needs to implement AML and KYC based checks back in their system to prevent cyberattacks and money laundering activities.

Healthcare Industry

The healthcare industry holds sensitive information regarding patients and hospitals. This information needs to be stored in a secured database in order to prevent data loss due to Online Fraud Prevention. In 2018, a report shows a $2 billion loss due to online fraudulent activities. This loss merely is not only associated o the bill healthcare industry paid but also the lives of several people were affected. The data of patients which includes insurance details, medical history, and personal information is stolen. Fraudsters use it to do money laundering, track their insurance details and blackmail them. For the healthcare industry, it is important to secure their data with significant security measures in order to prevent their system and patients from the heavy risks.

Online Fraud Protection

Online businesses should adopt serious security measures to mitigate the risks of online fraud. For this, identity verification and authentication are compulsory. Each identity entering into the system should be verified under certain AML and KYC regulatory compliances. The banking industry and financial institutions can prevent their system from cyberattacks using KYC compliance. This will reduce the risks of credit card fraud and online payment scams. Biometric verification (fingerprints, iris scanning, facial recognition, etc.) can help in customer verification. There are multiple other ways to verify and authenticate users. Below is a chart that shows the percentage of verification methods adopted by multiple online industries:
Online Fraud detection and prevention methods businesses

Regulation Governing online Fraud Prevention

GDPR

General Data Protection Regulation (GDPR) is the EU’s most vital regulation for privacy protection. GDPR presents certain rules regarding how the data of people should be gathered, used, manage and protect. For any online business that holds any sensitive information are obligated towards the regulations defined in GDPR.

BaFin

BaFin is the financial regulatory authority for Germany. On the basis of European supervisory standards, BaFin takes risk-oriented security approaches that are appropriate for industries and online businesses. It ensures reliability in the financial market and introduce policies accordingly.

PSD2

PSD2 in the EU forms regulations that support forms of payment institutions, introduce interaction methods and facilitate open banking. Under these regulations, online businesses map their systems and provide their customers with several services.

eIDAS

EU’s regulation that defines policies for trust services and electronic verification of customers. These services help in the identification and verification of individuals online and through electronic documents. Banks and financial institutions can implement ceratin functionalities based on the regulation of eIDAS in order to prevent online payment fraud.

Conclusion

For any online business, along with better user experience, the implementation of security measures is equally important. The cost businesses pay with vulnerable systems not only affect the economy but also result in inevitable damage to business reputation. Adoption of secure technological solutions can lessen the risks of heavy fines and business fall. Also, this helps to fulfill the previous loss by encountering them in the future.

Protect For Charity Against Fraud

Know Your Customer Verification for Charity Organisations

They say no good deed goes unpunished, if we were to take a look at it literally the frauds that happen to legit charity organisations are the perfect example. It is hard to believe that scammers would do such a thing, but sadly it does happen. As is with most charity organisations they don’t think that someone would do such a thing with them, but the truth is far from it. Besides the threat of fraud, charities also need to be aware of individuals or companies that might use the platform of the charity organisation to launder money.

 In this blog we will look at the warning signs that charities need to be aware of and what role Know Your Customer Verification (KYC) can play in protecting these organisations from fraud. We will also look at how charity organisations can prove themselves credible. Fraud prevention is not just limited to charity organisations as the opposite is also a concern, where the hard earned money of good people is swindled by fake charities.

If you are a charity organization looking for ID verification you’ve come to the right place. Apply now for free ID verifications.

Volunteer fraud in a crisis situation 

Volunteers are one of the primary sources of fraud. Especially when organizations have to hire numerous volunteers in a crisis situation. The risk of onboarding thieves/criminals using fake identities is high. Especially when it comes to handling funds and performing door to door operations. Often fraudsters onboard a charity organization and utilize its name to manipulate funds or loot the people in the door to door relief activities. 

This fraud causes monetary and credibility loss for the charity organization. In-depth identity screening of volunteers is necessary.

So How Do Donors Cheat a Charity Organisation?

There are two main ways that charity organisations are cheated by fraudulent donors. Although there are other ways as well. Also fraudsters are always concocting a new way cheat people an organisations. The first one involves the use of a fraudulent check. In it a donor reaches out to a charity organisation and shows their willingness to donate a large sum of money. After the initial contact the donor mails in the check for the large amount. After a very short time, the donor contacts the charity requesting a full or partial refund of the donated amount. The reason that is given is usually a very severe or emotional one, such as expense for a sick person or other emergency case. If the charity in concern refunds the amount before the bank gets back to them regarding the fake check, the charity is at loss. They will also be responsible for any bank related fees and charges.

The second way fraud is done against charities is through the use of credit cards. A donor approaches a charity organisation and requests to donate a large sum of money but with a condition. The condition being that a percentage of the amount will be donated to another foreign charity organisation. The foreign bank account of this charity organisation is actually the account of the donor. If the charity accepts the condition then they going to lose a lot. As in this case, the credit card used to make the transaction is usually stolen. The charity will solely be responsible for any chargebacks and it will have unintentionally partaken in a money laundering scheme.

Money is a powerful motivational factor and seeing a lucrative amount charities like other organisations are tempted to accept weird conditions. If only a simple identity verification service had been used; it could have thwarted these attempts. We’ll elaborate how later in the article.

So What Should Charity Organisations Look out For?

  • Large one-off amounts or a number of smaller amounts that are donated and no source can be checked by the charity.
  • Conditions where the charity is required to do something such as transferring of a certain amount to another charity.
  • If the charity is asked to keep a large amount/donation for a specified time period. After the short period the amount is to be returned to the donar. Usually charities find the attraction of keeping any interest that is earned while they are in hold of the money.
  • If the donation being made is in a foreign currency and there are conditions attached with the donation that the original sum is to be returned to the donor in a different currency.
  • if the charity is asked to provide privileged services and benefits to the donor and or a person or organisation nominated by the donor.

So how do Know Your Customer and Other Identity Verification Services help fraud prevention for Charity Organisations?

As mentioned previously a simple identity verification can thwart most fraud attempts. The simple fact is that when all credentials are verified and a proof of identity is asked to confirm that the donor is actually who they say they are. Most fraudsters back off out of fear of being caught. This verification is an integral part of the Know Your Customer policy that financial institutions such as banks follow. Some charity organisations argue that the system is workable for walk-in donors and not for their online donation platform, hence, it is not an effective fraud prevention process. The truth is far from it; there are 3rd party platforms that allow for online verification. The software can easily be integrated with any existing system. Using the webcam or even the smartphone camera of the donor the system can verify the authenticity of documents that are used to prove identity. It includes face matching and checks for any tampering and forgery. If something negative is detected the charity will know about it immediately. At the heart of the system is an advance AI that carries out the checks and then the result is reverified by Human Intelligence, whereby people check for any false positives. The entire process takes less than a minute.

Great! But how does Identity Verification or Know Your Service add Credibility to a Charity Organisation?

Good question, as we discussed the opposite is also true that there are fake charities that swindle good people out of their money. In fact this type of fraud is also quite high, charities collect the money and then pull a disappearing act. They are never heard from again and the cause for which they collected is never addressed. So people are also look out for warning signs regarding charity scams.

One thing that is common with charity scams is that they really don’t care where the money is coming from. They just want the money without concern for the source and would not definitely think about investing money in a verification solution. When a charity comes along with a 3rd-party Know Your Customer service it immediately tells the donor that this charity is serious about their donors and the money they are getting. Plus the simple fact that a charity is spending from its pocket to ensure compliance with Know Your Customer rules and for fraud prevention shows that it is there for the long haul.

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Infographics

To develop a simple and easy understanding of e-KYC and the role played by Shufti Pro’s digital identity verification services in online fraud prevention, head over to the infographics. Shufti Pro caters to a diverse range of use cases, some of which are pictorially represented for visual aid and understanding.

KYC Infographics

KYC Crypto World

PriceFor Shufti Pro

Prices for Shufti Pro’s® Digital Identity Verification Service Positively Stir The Public

 

Heads turn towards the appealing announcement of their pricing plans; path to online fraud prevention and digital identity verification never looked more feasible and affordable

BATH, United Kingdom – November 2, 2017 – Shufti Pro®, one of the emerging connoisseurs in the online ID checking and digital KYC sphere, broadcasted their pricing plans for public knowledge earlier today. They took a step further and announced that their services will be available for startup ventures well. Rest assured, Shufti Pro’s® services and prices are definitely set to be popular with the new entrants in the industry.

The corporation came forth with their pricing not long after they got officially registered in the UK on October 31, 2017. With such strategic planning and flawless execution, it is not a wonder that many companies were waiting to come on board with them right after their enlistment.

According to the information released by the company, Shufti Pro’s® pricing list includes 3 different packs:

i) Starter Pack ($1.20 per verification, with $2500 for the one-time setup fee)
ii) Standard Pack ($0.75 per verification, with $2500 for the one-time setup fee)
iii) Premium Pack (pricing is negotiable and discussed when the established businesses contact Shufti Pro® for their KYC needs)

“We have set our rates such that they are affordable by those who require a quick and accurate KYC identity verification  services, yet don’t want a major chunk of their annual budget slashed off for these services. We understand the clients’ needs and have tailored our services to meet them as best as we can.”, says CEO, Shufti Pro®, “Also, our decision to support startups with e-KYC solution was sourced from the need to make the online businesses secure and safe from fraudulent customers/imposters. If they are careful from the beginning, they can spend more of their time and resources on their business and growing it from scratch, rather than worrying about meagre potential scammers or risks to their venture. Shufti Pro® is here to take care of that at very reasonable prices.

With such a heralded entrance into the market, Shufti Pro® is set to leave its competit
ors behind in not a long time. Its attractive pricing packages have raised an excited buzz in the industry. That is sure to push them steps ahead on their ladder of success.

e kyc services establish uk

Shufti Pro’s® e-KYC services establish in the United Kingdom

 

Months of hard work and diligence in the fraud protection services resulted in Shufti Pro’s® setup in the UK as a registered company; scores of online businesses look forward to enter the realm of fast and secure e-KYC with the newly instated institute

BATH, United Kingdom – October 31, 2017 – Shufti Pro®, an emerging name in the e-KYC and digital identity verification milieu, got officially enlisted today at Bath, UK. Over the past few months, the venture had been striving to acquire registration.

With numerous clientele already pouring in, and customers looking forward to explore Shufti Pro’s® services, the SaaS had developed a relatively strong and deep-rooted foundational grounds before beginning to build their business up. They made sure their digital identity and document verification services were made up of state-of-the-art technology involving artificial and human intelligence. The SaaS performs real-time verification in the least time recorded across its competitors.

The quick, accurate and efficient process was well recognized by the concerned audience and earned Shufti Pro® the credibility and legitimacy before it got officially registered earlier today.

CEO, Shufti Pro® expressed his joy when he said:

“It is an exhilarating feeling to see months of uphill struggle finally bear fruit in the form of official registration in the UK. We set out on this journey with this very goal in mind and extended our aims way beyond this as we took the steps towards the being the best identity theft protection service. To see our basic goal achieved is merely an indication that we’re on the right track. It truly serves as a beacon of hope that our future goals are not difficult to attain as long as team work and working for the company, rather than for an individual or oneself, remains our primary strategy.”

With the excitement buzzing through the conglomerate, it is sufficient to bid best wishes to them. Shufti Pro® is definitely on its way to become a hallmark in the field of e-KYC , online ID verification and building a trusting client-customer relationship by putting their needs first. Being the most customisable and accurate software as a service in the market, Shufti Pro is set to break the barriers of technological advancements in online fraud prevention and making the global virtual market a safe and secure place for future trades and transactions.