First the demonetisation and then the Covid-19 disruption have pushed India towards a less cash economy through adoption of fintech platforms. However, as the technological advancements make digital transactions easy, cyber criminals are also taking advantage of the same technology to defraud people with innovative techniques.
Even as regulatory authorities are taking various measures to make digital transactions secure; the instances of cyber frauds continue to surge.
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Ranjan Reddy, CEO and Founder, Bureau gives his views on 2023 outlook for identity fraud verification and cyber security:
Surge in Cyber Fraud Cases
The year 2022 has witnessed many untoward incidents – crypto meltdowns, synthetic ID fraud, phishing, fraud rings, UPI fraud, money laundering, collusion, OTP theft, and referral abuse, to name a few. With the attackers constantly evolving their techniques for maximum benefit there was a spike in online fraud, resulting in financial and reputation loss for businesses across industries. Gartner states that 45 per cent of organisations globally will witness attacks on their software supply chain in 2025, showcasing a threefold increase from 2021.
Growth of Digital Transactions
In the last few years, innovation in the payments landscape, regulatory support, and an increase in mobile internet penetration has played a vital role in the rapid growth of digital transactions in India. However, adopting these advanced payment options has also generated unprecedented opportunities for criminals to perpetrate fraud by exploiting system loopholes and human vulnerabilities.
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To prevent digital fraud from weakening India’s momentum in becoming a $5 trillion economy, creating a robust digital infrastructure to protect user data is the need of the hour. In 2023, businesses must look beyond traditional approaches and opt for digital-first technologies that combine AI, machine learning, behavioural biometrics, and device intelligence. Going forward, KYC/KYB processes will play a vital role in preventing and identifying unlawful activities such as money laundering and terrorism financing. Another key aspect will be the collaboration between all stakeholders to create a pro-privacy data infrastructure which will be crucial in preventing digital fraud.