Hiscox publishes its annual Cyber Readiness Report today, offering a best practice blueprint for businesses to counter the growing threat of cybercrime and fraud. Without investment in prevention, detection and training, firms risk exposing themselves to costly business interruptions and brand impairment.
A number of large-scale cyber-attacks have grabbed media attention in the headlines in recent years. But to protect against all cyber threats and comply with the latest regulations, companies in the commercial and financial sectors (including Fintech and eCommerce) also need to be on the lookout for online fraud, a more subtle type of cybercrime that costs UK citizens £1.4bn a year.
But recent advances in mobile tech are facilitating the process of verifying identity, which makes fraud detection and compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations much easier. Anti-fraud doesn’t have to be cumbersome.
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This enables companies to ensure that only legitimate customers are on-boarded from the start, significantly reducing the risk of fraud. It is also changing the game for sectors that find it challenging to meet KYC compliance requirements due to limited data access and availability.
Stephen Ufford, CEO of Trulioo, comments: “With a growing number of financial transactions made over the internet, fewer interactions than ever are carried out face-to-face. It is often difficult for companies to tell who exactly their customers are online, which poses a serious security and compliance problem.
“This kind of threat requires a risk-based approach from companies to identify and understand the risks they are exposed to, and take the appropriate measures to verify that individuals are who they say they are.
“But the proliferation of smartphones across the world offers a solution to this. Two-thirds of the global population own mobile phones, giving a digital identity to an increasing number of people, including unbanked individuals.
“New mobile technologies are allowing payments companies to leverage smartphones as a way to detect fraud and verify identity during account creation.
“This adds an extra layer of security to identity verification, enabling successful compliance with rigorous KYC and AML regulations, whilst ensuring a secure experience for the end-user.
Stephen continues: “MNOs have the ability to offer enhanced coverage and convenience for identity matching and fraud prevention.
“Perhaps most importantly, Mobile Network Operator data signals a leap forward for financial inclusion, making it easier for individuals and organisations all around the world to safely and securely transact on a global scale.
“This kind of capability is key to mitigate the ever-evolving risk of cyber-fraud, in a world where interactions are made between screens rather than face-to-face. Now digital identities can be verified through the swipe of a phone.”