Authentication Would Have Reduced Loss of Facebook Scheme

  • Internet Fraud

While 10 individuals have been placed behind bars for the recent Facebook phishing scheme, more than 11 million computers have been left compromised and over $850 million has been stolen.The arrests certainly bring partial justice to this major cyber crime, but more than handcuffs are needed to help combat attacks of this nature. Experts in both the security and banking industries agree that stronger authentication is needed to help prevent these types of crime.

The scam all started in the place where people share the most about themselves, Facebook. The fraudsters accessed information by sending out fraudulent friend requests and then sent phishing emails to the accepting users Facebook friends. The scam resulted in a loss of over $850 million before the individuals were arrested. As online security expert, Neil Schwartzman, suggests, banking institutions needs to focus on stronger authentication measures to prevent cybercrime. Both Schwartzman and Jevans state that stronger authentication would have prevented some of the losses of this attack. While other experts go on to recommend two-factor authentication, a recent breach has proved that cyber thieves have found ways around two-factor authentication as well. This is not to say that this method is not effective, but companies should know there are other options as well.

Knowledge-based authentication offers a layer of authentication that standard measures do not. By developing answers to security questions that look and feel like the correct answer, these options will throw off any identity thief regardless of how much personal information they have. These questions are created in a way that only the true identity holder can answer them. Businesses need to be well educated on their online security options before investing in one. As the world continues to moves online, business must devote time and money into protecting their business and end users. Identity authentication will no longer be an option soon, but a necessity and companies will need to choose the option that is best for their name and consumers.

[Contributed by EVS Marketing]