Cyber-Security and Fraud Prevention

  • Fraud Prevention, Security

As technology evolves, the number of outlets to share personal information increases, raising the level of vulnerability to ID theft and fraud. Companies now need to reevaluate their fraud prevention measures to make sure those measures are in co-ordinance with changing technology. More importantly, companies need to consider the fact that cyber-security and traditional fraud prevention may need to be treated as different entities. These two issues, while very closely related, do face different obstacles making it essential to examine each one separately. You may be surprised to find that one may need more service than the other, especially depending on the industry and consumer.

In an interview with John Carlson, Background Intelligent Transfer Services (BITS) VP of Cyber-security and Fraud Prevention, he discusses the issues around cyber-security and identity proofing. Identity-proofing, also known as know your consumer (KYC), helps to prevent fraud especially in situations where you never meet the consumer in person. ID verification and authentication play a huge role in ensuring that someone is who they are claiming to be. Increasing these KYC efforts will also help to prevent against fraud, primarily online. As mentioned in Social Payments Pose New Security Threats, security in cyberspace is more important than ever before now with the existence of mobile payments, social media payments, and the use of cloud servers. In addition to these new platforms, constantly changing authentication guidelines, rules, regulations, and requirements make it even more difficult to keep up with fraud prevention.

Collaboration with your third party vendors, in-house security department, and clients is the one of the important variables to remember when re-evaluating your security measurements. Solutions may vary for different consumers, in different industries, using different platforms. Using EVSs ID verification and authentication will support your companys fraud prevention needs in tandem with cyber-security and KYC.