Online fraud comes in many forms. Between Ponzi schemes and sophisticated phishing attacks, businesses have a lot to watch out for as far as fraud is concerned. After all, in this day and age, you can’t necessarily forgo an online presence. Modern consumers expect companies to maintain a website and several social media accounts. Thankfully, there are ways to protect your digital assets from malicious risks and cyber threats. Online fraud detection has become an industry of its own. In this article, we would be exploring web fraud detection – best practices, as well as common threats that plague online businesses.
What are Common Types of Online Fraud?
As they say, knowing the enemy is half the battle won. This statement is especially true when it comes to online fraud detection. Different types of fraudulent activity require a variety of actionable steps to circumvent and minimize the effect of the attack. Below are a few of the most common forms of online fraud to be wary of:
Phishing scams are one of the most common forms of online fraud companies should watch out for. This type of attack entails using a seemingly official online document to convince individuals to disclose sensitive information to hackers. Phishing attacks might not seem all that effective; however, not all employees are well-versed in cybersecurity and online fraud detection. So long as an email or a web page looks official, many people are willing to surrender their personal and company details.
- eCommerce Fraud
Especially at the height of the recent global pandemic, most individuals have turned to eCommerce for their necessities. It has bolstered an unprecedented boom in the industry. While this development is exciting, the growth provided malicious individuals another avenue for fraud.
Both sellers and buyers are susceptible to eCommerce fraud. Some hackers place large orders on legitimate eCommerce sites and forgo payment. Likewise, some malicious individuals set up fraudulent shopping sites with the intent of scamming buyers out of their money without sending the purchased products.
Similar to how a hijacker hijacks a plane and takes over controls, hijacking in cybersecurity refers to the attack in which a hacker gains control over a network or a website. Depending on the attacker’s intent, there are two ways a hijacking attack can affect an operation. Hackers might only use this threat to gain access to sensitive information. Likewise, they can completely control a network – change the content, reply to queries, or take down the website altogether.
Best Online Fraud Detection Policies for Your Business
According to recent studies, businesses across the globe lose about 5% of their annual revenue to fraud. On average, this amounts to $160,000 in losses each year. This figure might not make a dent in the profit margins of multinational corporations, but it is enough to affect small and medium businesses permanently.
To prevent and minimize the extent of online threats, below are the best ways to protect your digital assets through online fraud detection tactics:
- Assess Potential Risk and Build Fraud Profiles
The first step in online fraud detection is familiarizing yourself with the lay of the land as well as the possible threats that loom over your digital assets. Evaluate past attacks on your network, then qualify these attacks based on the frequency, the extend of damage and entry points. Identifying corporate risks allows your company to prioritize the sectors of your operation that needs fortification. It also provides a means for the business to detect potential threats even before an attack happens.
- Use Address Verification Softwares
One of the easiest ways to spot an attack is by comparing a buyer’s billing address to their bank’s location. An AVS is especially helpful for eCommerce companies looking to minimize fraudulent purchases. An AVS mismatch is a strong sign of fraud since the hacker might not have the cardholder’s personal information.
- Implement Continuous Auditing and Monitoring
One of the biggest hurdles companies have with their cybersecurity safeguards is the inability to monitor the system for attacks in real-time. The goal of online fraud detection is to help identify a threat before it happens or a spell as it happens to either prevent or minimize the extent of the damage. Choosing software that offers proactive threat hunting, continuous monitoring, and real-time reports is crucial to protect your company’s digital investments and
- Communicate your Fraud Detection Policy to the Rest of the Company
Your employees play a significant role in cybersecurity. They are, after all, your company’s first line of defense against fraudulent attacks like phishing. Educating your employees, especially those that do not have significant cybersecurity know-how, is an excellent step in safeguarding your network and online fraud detection. If your employees are educated about what to look out for, they are less likely to be victims of these fraudulent practices.
Does Your Company Need an Online Fraud Policy?
The short answer to the question above is yes, absolutely. If your company maintains digital assets, there is a need to develop a fraud policy to protect your investments. Fraud doesn’t discriminate. Hackers will attack even small and medium businesses if there is something to gain from the exercise.
For your company’s online fraud detection policy to be adequate, specific stipulations need to be included in the guidelines. For one, each type of fraudulent attack that your company is vulnerable to should be defined within the policy. This provides your employees the information they need to identify the threats. Likewise, your employees should be given a list of actionable steps to follow if they suspect fraud. The steps should be clear and concise.
A strong online fraud detection policy is crucial to a company regardless of the scale of its operations. It is always better to err on the side of safety as far as your digital investments are concerned. To truly protect your business from online fraud, finding the right security partner is vital.
Thankfully, you don’t have to look any further.
SecureBrain’s slew of tried-and-tested security solutions can fortify your cybersecurity and online fraud detection protocols. From early detection to continuous monitoring, hackers have no match against your stronghold. Reach out to us today to learn more about the services that we offer.