What Can Companies Do About The Danger Identity Fraud Poses
A study recently released by Juniper Research revealed that if they do not improve their security systems, business enterprises could lose more than $200 billion because of online fraud in the four years from 2020 to 2024. Of course, the financial sector will be the most popular target for these cyber criminals - but it will now be the only one.
According to Proof Point, a disturbing 33% of American citizens have at some or other point become the victim of identity fraud. This percentage is three times higher than in countries such as France or Germany. Even more disturbing: it is twice the global average.
Another worrying statistic, particularly for firms involved in age Restricted eCommerce, is that more than 1.3 million children fall prey to identity fraud every year. However, data from Michigan State University also shows that half of those kids are only six years old or younger - and the average age is dropping each year.
What Are Companies Doing Wrong In The Fight Against Identity Fraud Danger?
For many years businesses have adopted a siloed approach to digital identity management. Different departments on a variety of data structures. Managing and onboarding users often have virtually irreconcilable objectives for managing and onboarding users. The compliance group would, for example, ensure that personal data complies with the myriad of regulations out there. On the other hand, the risk group reduces financial losses due to fraud. And the customer support and product management departments are acting relatively independently and do not always fully realize why digital identity is essential.
Identity thieves are well aware of the debilitating impact these silos can have on building a unified defense against their actions. This can increase identity fraud danger - and that is why they embrace networks in their approach and exploit silos in the firms they attack. Therefore, the future of identity verification technologies seems to lie in learning to think more like fraudsters. This is particularly true in the case of synthetic fraud, which is a rapidly growing identity fraud danger right now.
What Can (And Should) Companies Do About The Growing Identity Fraud Danger?
Fortunately, there is quite a lot companies can do to prevent identity fraud. The list includes:
Legal Requirements
The Identity Theft Protection Act sets out what businesses should do to protect their clients' personal information. The list includes:
- Do not mention the recipient's SSN in any written correspondence unless this is a requirement of federal or state legislation
- Customers should be notified immediately when a security breach might have compromised their data
- When you are disposing of documents that include personal client data, make sure they are shredded or destroyed.
- When you experience a data breach, the Consumer Protection Division of the Attorney General's Office has to be informed.
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Ensure That Sensitive Data Is Protected
Use data encryption. Client data has to be securely encrypted before it is stored or transmitted. This includes Social Security info, bank account details, and credit card information. Even if it lands up in the hands of an identity thief, they must not be able to use it. This is particularly important in an era when age Restricted eCommerce is increasing rapidly.
Update software regularly and use a firewall. A firewall can go a long way to deter hackers. Also, don't neglect to do regular system updates to fix any possible security issues.
Use the latest technology. Relying on technology from ten years ago is an open invitation to identity fraudsters. Instead, use the latest encrypted backup technology, anti-virus software, and DDos applications.
Only use trusted vendors. When sharing sensitive data, make sure that you never put it in the hands of anybody you do not trust 100% or who doesn't have the necessary technology to protect it.
Limit data sharing. Only workers who need the information to do their work shall have access to specific data.
Make Use Of Age Verification and ID Verification Technologies
Age and ID verification are crucial parts of age-restricted online pursuits like gaming or lottery and age-Restricted eCommerce such as tobacco and alcohol sales. However, none of these are, of course, immune to the activities of fraudsters and identity thieves. Therefore, if your business requires age and ID verification, it is crucial to use a digital identity platform that works in tandem, enabling you to conduct an in-depth search of reliable data sources and immediately report issues such as identity discrepancies.
Get Rid Of Personal Information That Is No Longer Needed
To minimize the risk to your staff members and clients if records end up in the wrong hands, the company should have the policy to dispose of data that is no longer needed. As a bare minimum, old documents with personal data have to be destroyed with a cross-cut paper shredder.
When the firm buys new computers, make sure the old hard drives do not fall into the hands of data thieves. Then, after the files have been backed up and transferred somewhere else, use special software to remove all data from these disks. Also, ensure that the same data isn't stored somewhere else, for example, on the firm's local area network. Finally, destroy backup tapes and old computer disks.
Protect Physical Correspondence
Incoming mail should be kept in a locked mailbox. Do not include personal information in an email, snail mail, or faxed documents to clients. Include only part of the recipient's SSN if it is unnecessary to have all of it.
Protect Your Company's Computers Against Identity Fraud
Every firm should have a computer security policy in place. For example, limiting access to computers with multi-factor authentication and strong passwords. Additional security measures like anti-virus software, firewalls, encryption software, and spyware protection software should also be added.
Network activity must be recorded by using data protection software. Also, check audit trails and log data regularly for any dubious activities. Finally, unless it's completely unavoidable, never share or make files that contain personal data via the Internet or any other network.
Who We Are And How We Can Help Your Firm To Prevent Identity Fraud
We're focusing on enterprise-level companies requiring age and ID verification. We continuously study any developments impacting these companies' digital ID future.
The other solution we offer is for employee verification, allowing existing employees of enterprise companies to verify anything from documents, testing, etc. For example, when companies were mandating vaccinations or proof of testing, we created a solution allowing Human Resource departments to track their employee's records tied into their HR systems.
Schedule a call today with a BlueCheck specialist to learn more about our Age & ID Verification solutions.
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Sources:
https://www.idology.com/blog/age-verification-why-simply-verifying-age-is-no-longer-enough-2/
https://ncdoj.gov/protecting-consumers/protecting-your-identity/protect-your-business-from-id-theft/
https://www.raconteur.net/sponsored/the-danger-identity-fraud-poses-and-what-companies-can-do/
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