THERE IS a specter that haunts consumers in the Asia-Pacific region: the risk of fraud. These risks are on the rise and most of them are due to credit cards, as they are the most common payment method in the region, according to a report by a data and analytics company.
LexisNexis Risk Solutions Inc.’s recent “True Cost of Fraud-Asia Pacific” study found that the pandemic has accelerated the adoption of online and mobile transactions which, compared to in-person transactions, are exposed to fraud risks more important.
“Credit cards are the single largest payment method and source of fraud losses across much of the region, but digital/mobile wallets and debit cards are also heavily considered,” the report said. .
The report also notes that identity verification is the top concern for potential fraud in online channels.
Challenges that make identity verification tricky include the rise of synthetic identities; a greater shift to digital payment methods; more botnet attacks; inability to confirm place of origin; and limited access to real-time risk assessment data and tools, among others, according to the report.
With the risk of fraud increasing, the study highlighted the need for businesses to implement multi-layered solutions to protect their consumers.
This defense against digital fraud, he explained, must also be accompanied by a single sign-on decision platform that includes near real-time event data, third-party signals and cross-intelligence. -channel.
The report says bot attacks could be mitigated through the use of behavioral biometrics, such as keystroke dynamics and voice identification. A bot attack is the use of automated web requests to manipulate, defraud, or disrupt a website, application, API (application programming interface), or end users, according to a website owned by Fastly Inc.
“This fraud defense strategy analyzes how a user interacts with a device and reliably differentiates user profiles,” the report said.
“As fraud becomes more complex, various risks can arise at the same time without a single solution,” reads the LexisNexis study. “Fraud tools must authenticate both digital and physical criteria, as well as identity and transaction risk.”
The Alpharetta, Georgia, US-based firm’s January-June 2021 Cybercrime Report included the Philippines in the top 10 countries in the world where digital threats originate.
“The growth in attack volume from the Philippines was largely driven by a credit card test attack targeting a payment gateway in March,” the data and analytics firm said.
The LexisNexis report noted that man-made attacks across the world decreased by 9% to 236 million during the period. Most of these targeted mobile users at 54 percent, the rest were for computer users.
Meanwhile, automated bot attacks jumped 41% to 1.2 billion. More than half of them were for financial services.
“High-speed, automated attacks that typically test stolen credentials en masse against a particular use case, from one machine or a series of machines, have flourished in financial services and media organizations. “, says the report.