Technology has become essential to our daily lives in this digital era. Mobile security is more critical than ever to safeguard digital transactions. Due to the convenience of mobile devices, it is easier to connect to the internet, make payments and shop online anywhere. Given our growing reliance on mobile devices, our digital transactions must remain safe. Financial institutions will likely suffer significant financial losses and reputational harm due to the recent surge in digital frauds and cybercrimes, expected to top $10 trillion annually by 2025, as per research conducted by Cybersecurity Ventures.
Fraud related to the legacy technology of usernames and passwords has drastically increased, so companies must implement robust security protocols and monitor suspicious activities to ensure customer safety. Various Social engineering techniques can be used to commit Account takeover frauds (ATO) caused due to password fatigue and leaked passwords due to data breaches. Customer loyalty and brand reputation are at stake due to such scams. Synthetic identity fraud cost businesses nearly $2.5 billion in 2022, and research by Forbes suggests that the number could double to almost $5 billion by 2024. Malware, viruses, phishing, and other cyber risks can all infiltrate mobile devices. The damages from these exploits are dismaying – but not lesser than the thought that they might have been prevented with a more robust Identity Verification Process.
The introduction of 2FA with OTPs was able to reduce the fraud caused due to inefficient username and password authentication mechanisms. However, it had its limitations. It could not identify if there were any impersonations as it was only dependent on OTP being successfully delivered and validated post input. Possession of the Sim card with the legitimate owner is essential to complete the authentication process accurately. Due to attacks like SS7 interception and re-routing of OTPs to fraudsters, this solution could not provide the accurate security measure for Account takeovers (ATO). As per Sift, a spike of 131% YOY was observed in account takeover frauds, affecting fintech and marketplaces.
An individual’s mobile number is a ubiquitous identifier. Every digital transaction uses a mobile number, including online registrations, banking, purchases, and bookings. Imposters can fake identities, obtain critical information from a Mobile Number, and execute frauds.
The need for enhanced security against digital fraud is ever-evolving. Fraudsters can find loopholes in enterprises’ security measures to safeguard their business. Human error is also a significant security risk for companies, accounting for 80% of data breaches, according to a report by Verizon. Imposters use phishing or other social engineering methods to convince individuals to give out sensitive information.
The best solution to address the weaknesses of usernames and passwords and 2FA with OTP is to implement a multi-layered mechanism based on possession and identity factors like the user’s device and SIM card by providing MFA (Multi-Factor Authentication) and providing the reputation associated with a Mobile Number. Ring-fencing methods can also be implemented, providing another layer of protection. Moreover, Organisations can validate data while enhancing security using QR code authentication.
TruSense, a Route Mobile company provides a secure way to authenticate a user and gives a reputation against an individual’s mobile number to effectively circumvent account takeovers, identity theft, phishing, and smishing attacks. These solutions offer a competitive advantage over more established technologies since they work to prevent phishing attempts by empowering end users and enabling businesses to create a safer digital environment.
We envision a world free of digital fraud and thrive to protect consumers and enterprises from fraud across the digital user lifecycle using market-leading mobile-first technologies.
Author: Rajdip Gupta, MD & Group CEO | Route Mobile Ltd
Publication: Voice & Data : Secure Mobile Identity: The need of the hour