Identity theft in the business realm is not just a growing concern but a pressing issue in the digital age. Shocking data from the Identity Theft Resource Centre (ITRC) and the Trulioo survey reveal that 73% of businesses fell victim to identity theft in 2023, and a staggering 79% were affected by business fraud. These statistics underscore the urgency for large enterprises to safeguard their sensitive information, such as names, credit card numbers, and social security numbers, from falling into the wrong hands.
However, if this data falls into the hands of the attacker, it can easily lead to fraud or identity theft. Thus, it becomes crucial for corporations to protect their sensitive information from unauthorised access. Consequently, with the help of the following strategies, enterprises can defend themselves against identity fraud:
Make a thorough inventory of all electronic equipment, such as laptops, flash drives, mobile phones, digital cameras, etc., to determine where your company stores sensitive data. Additionally, categorise the information you have by type and location. Updated antivirus and anti-spyware software installed on workplace computers and laptops can help immensely in keeping malware and spyware at bay. Also, putting firewalls between the enterprise’s network and attackers can help businesses protect their network.
Implement a multi-factor authentication method
Identity fraud is not a static problem; it's a dynamic interplay of patterns, parameters, and human behavior. As leaders in large enterprises, you have the power to shape the industry's resilience to fraudulent activities. By pooling resources and insights, you can create a united front against fraudsters, effectively increasing the industry's overall resilience to fraudulent activities.
“With the rise of stringent security standards and the demand for seamless digital interactions, large enterprises face increasing pressure to combat identity fraud while enhancing customer trust. At Jukshio, we’re advancing the industry by providing real-time, AI-driven digital identity solutions that prioritize security without sacrificing user experience. Our KYC++ solutions use cutting-edge algorithms to perform real-time authentication through face recognition with a secure biometric key, as well as document verification, allowing us to detect and prevent fraud within hours rather than weeks. This approach helps businesses meet regulatory demands, lower operational costs, and deliver a smooth customer journey”, says Dr. Sridhar Tirumala, Co-CEO of Jukshio.
To avoid such instances, it is necessary to implement multi-factor authentication measures, including location-based authentication, which analyzes the user's IP address and geographical location. This information is then used to block a user’s access if their location does not match the allowed list. Adaptive or risk-based authentication is another subset of multi-factor authentication that analyzes additional factors by taking into account contextual and behavioral factors. These values are then used to examine the risk associated with the attempted login. The risk is calculated while checking these questions and helps determine whether the user should be prompted for an additional security factor or not.
Digital identity verification is the method of confirming an identity online. It helps ensure that the people with digital identities are actually who they say they are. It further investigates their reputation to prevent fraud and mitigate risk. Digital identity verification is a quick and reliable way to add a safe layer, and a person’s online identity can be confirmed by using legal information such as a government-issued ID or biometric identification.
‘Companies like ours are focusing on creating a balance where security meets efficiency, thereby protecting the corporate bottom line while delivering a frictionless user journey, Tirumala added.
The growing use of Radio Frequency Identification (RFID) chips has enabled businesses to construct a more secure digital identity verification ecosystem. For instance, a leading Nordic financial institution, Skandinaviska Enskilda Banken (SEB), stores online documents in its Smart-ID app during client onboarding. This app, which uses RFID technology, provides a secure and signed asset embedded in biometric passports and ID cards, offering high resistance to fraud.
Real-life examples of adopting digital Identity methods
Neobanks are among the businesses where digital identity verification is crucial, as they operate remotely. In India, confronting the challenges of the BFSI sector, digital platforms must be equipped with relevant tools and solutions that generate accurate insights and intelligence to streamline onboarding. On these lines, a company in the US named Chime also uses this method by acquiring individuals’ information, such as name, address, and social security number. They first verify these details before granting access to their services. Some organisations have added additional security to this measure for enhanced compliance.
As more people join the online world, both professionally and privately, the opportunities for cyber attackers to steal information are also on the rise. While identity theft is a looming threat, companies can secure digital interactions by taking proactive steps and creating trust, loyalty, and engagement. To protect against identity thefts, organisations need to execute proactive and preventative measures. This vigilance can go a long way toward avoiding security breaches.
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