How to prevent digital fraud

(Updated: 11 February 2023)

The advancements in technology can be seen as a double-edged sword. On one hand these amazing technological developments make online transactions faster and more secure than ever before. On the other hand, cyber criminals utilize this technology to defraud companies in new and creative ways.

That being said, the need for on-going cybersecurity conversations is paramount as we continue to see an increase in digital fraud throughout South Africa and the world. According to Marketing Edge, digital fraud losses have been projects to surpass $343 billion globally between 2023 and 2027.

Marketing Edge also reported alarming growth in first party and Fintech fraud such as identity theft, data breaches, phishing, web skimming, social engineering, botnet attacks, application fraud, micro-deposit fraud, payment fraud, and account takeover cases.

Digital fraud is an unfortunate reality plaguing the digital space, that shows no signs of slowing down. Anyone can become a victim to digital fraud, so we have put together a couple of useful tips to help you battle digital fraud in its many forms:

Password Security

Your passwords are the first line of defence when protecting your accounts and data from unauthorized access. However, if you are using the same password for multiple accounts then you are placing your data at risk. Having strong, complex passwords and in some cases multi-factor verification can help safeguard your data from unauthorized access.

What additional password security steps can I take?

1. Top-rated password managers can keep your sensitive information secure against cyber threats.
2. Utilising strong passwords that are longer than 8 characters, include numbers, letters, special character can make potential data breaches more difficult than using passwords like 12345#.
3. Practice password hygiene frequently but changing passwords across accounts rather than keeping the same password over multiple years.
4. Do not recycle old passwords as these may have potentially been compromised in the past.

Improve Online Threat Detection

In addition to keeping your passwords safe, you should look at further protecting your online data and mobile devices as these can be a new avenue of cyber-attacks. Having online threat detection in place can help safeguard your business from potential breaches, however, educating employees on the risks of reckless browsing is also vital.

How can I protect my online data?

1. With an increase in fraudulent and unsecure website’s popping up on Google, businesses and employees should be wary when making online purchases. Keep to secure and trusted websites to avoid online shopping scams.
2. Consider using a VPN service to protect your data whilst browsing on the internet at anytime and on any device. This protects your data and browsing from any interference or snooping from anyone trying to access your data via the Wi-Fi connection.
3. Add another layer of security to your devices by having reputable antivirus and malware software

Phishing Scams

Phishing scams are an incredibly popular tactic used by cyber criminals to gain access to your data. This is largely due to the cyber criminals’ ability to make emails or SMS’s look legitimate. These emails may appear to come from clients, fellow employees, or even banks, asking you to confirm certain sensitive information that can then be used to defraud you of your data or money.

We’ve covered how to detect and avoid phishing emails in a previous article, however, here are a few tips on what you should look out for:

1. Identify obvious grammatical errors, one of the biggest signs of a scam email are frequent and obvious grammatical errors.
2. DO NOT open any suspicious attachments in emails you weren’t expecting e.g., if a client sends you an invoice or asks to confirm payment which was not discussed previously.
3. DO NOT click on any links within SMSes or emails from banks asking you to verify your account details, as banks often state that they will never request that.
4. Always check the sender’s email address, more often than not it will be a different email address than the one associated with the recipient.

Additional Security Measures

We’ve covered a few best practices that can help keep your data and personal information safe, however as we continue to change and new software gets released, there will always be the overwhelming threat of cyber fraud. Here are a few additional steps businesses can use:

1. Improve your digital client onboarding process with comprehensive KYC checks and reduce possible data breaches, identity theft, account takeover frauds, money laundering and terrorist financing.
2. Ascertain an individual’s credit history and scoring before extending credit to your debtors and avoid bad payers by getting a consumer credit report.
3. Taking on a supplier or client, get a company credit report and prevent fraudulent activities such as financial fraud and embezzlement from impacting your business.
4. Avoid dealing with suspicious or potentially fraudulent bank accounts by confirming the authentication of the bank account in association with a particular client or supplier.

Conclusion

When it comes to fraud prevention education, there are lots of things to consider and keep in mind when doing day-to-day activities online. As a business owner, having the right partner to help you identify potential fraudsters before they cause financial or reputational damage it important.

At MarisIT, we are committed to protecting South Africans and their businesses from the growing threat of cyber fraud. We offer a range of products and services designed to mitigate cybersecurity risks and keep your online presence safe and secure. For more information, contact MarisIT today.