Risk of online financial fraud accelerates pace of digital transformation
An increased risk of online fraud could speed up the digital transformation of the UK’s business community, credit experts have claimed.
As more and more people are working from home during the coronavirus pandemic, Equifax has warned that third person impersonation is rising, and the full effects may not be seen for some time.
The credit checking firm added that Covid-19 is shining a spotlight on sub-optimal online processes such as ID verification and customer onboarding.
“The current pandemic has forced rapid and wholesale changes to our lifestyles and opened the digital doorway for opportunistic fraudsters, escalating threat levels to new highs,” said Keith McGill, head of fraud & ID at Equifax UK.
Read more: Equifax partners with identity platform to digitise fraud checks
“This in turn has accelerated the pace of digital transformation for businesses and a pathway to securer online platforms.
“With unfamiliar business procedures and fast-tracked digitisation, lockdown has been a fraudster’s dream, as they prey on new digital migrants used to more traditional online interactions. As well as malware and phishing, fresh attack opportunities are emerging as housebound consumers grow their digital presence across e-commerce, media streaming and even gaming platforms.”
However, McGill added that the rise of online fraud could trigger a “sea change for identity verification.”
Read more: Treasury launches review into fintech sector
“Greater digitisation is the direction of travel and robust solutions such as biometrics will flourish,” he said. “The old customer experience trade-off between speed and security is fading as biometrics marry the seamless with the safe, and a wave of new interest still points to 2020 as the year biometrics fully take hold in the ID ecosystem.
“Not all businesses are agile, and the pandemic could separate the winners and the losers, but those adopting the safer verification technology will stand the test of time. While higher vigilance than ever is needed right now, a securer landscape is on the horizon.”
Read more: Open banking could play pivotal role in lending amid Covid-19
