The pandemic has forced individuals to opt for digital transactions over face-to-face interactions. Unfortunately, the proliferation in digital transactions has led to an alarming rise in online identity fraud, often executed by fraudulently taking over a consumer’s phone.
A report by Atomik Research found out that 74% of financial institutions in the UK and the US experienced a surge in cyberthreats linked to COVID-19. About 37% of them believe their customers are now at greater risk of cybercrime or fraud. Identity theft, account takeover, and online fraud are forcing financial institutions to implement more stringent identity verification and authentication practices. However, strengthening fraud prevention leads to a high number of false positives, resulting in poor onboarding experience and customer service. |
