Advice on How to Adopt Digital Innovation Without Running the Risk of Account Takeover Fraud and Customer Stress

1. Advice on How to Adopt Digital Innovation Without Running the Risk of Account Takeover Fraud and Customer Stress

2. Customers are seeking more convenient digital services, while at the same time, the quantity and severity of cyberattacks attacking e-commerce and digital services are growing. This paradox affects many online retailers and service providers. Online firms are now in the unfortunate position of attempting to accommodate customer expectations for digitalization while increasing their vulnerability to fraud and other types of cybercrime. Three main drivers are at the core of this puzzle. The existing attack surface is increased by each modern digital service or e-commerce website that businesses launch, offering attackers a bigger target and complicating detection and response. Next, security and fraud teams—which frequently operate in separate silos and infrequently collaborate on cyber strategy or retail fraud 2nd degree or defense tactics—are the groups in most firms that are most concerned with protecting against cybercrime. This makes it more difficult to implement a unified cybersecurity strategy that would limit or block malicious and more swiftly stop fraud and breaches. Finally, and strangely, some consumer habits and actions unintentionally raise the visibility of online retailers and service providers. According to Google data, almost two-thirds of users repeat their passwords and usernames across several websites. Who can blame them, though? Based on a BuiltWith e-commerce utilization distribution analysis, there are close to 33 million e-commerce websites online, and almost all of them demand a username and password to make a transaction. However, reusing credentials frequently causes security holes that can be quickly exploited by fraudsters and their armies of robotic automatons. According to Hacker News, 54% of security breaches result from stolen or compromised credentials, which opens the door for account takeover, or ATO, one of the most dangerous cyber threat vectors out there. Credential stuffing is the process by which attackers carry out bulk automated login attempts using armies of bots to determine which credential pairings are accepted by various login forms.

3. Attackers can take control of accounts, alter credentials to lock out the actual account owner, siphon off funds, and utilize the accounts to carry out additional fraud because a large portion of compromised credentials will also work to access accounts at other websites. According to a study in VentureBeat, ATOs increased significantly in the first half of 2022, increasing 131% over the same period in the prior year. There are actual effects: ATO has affected 22% of American adults, according to the Javelin 2022 ID Fraud Study, and digital fraud losses are expected to reach $343 billion in the corresponding period between 2023 and 2027, as per reports in American Banker. It is apparent that adopting digital innovation raises the risk of cyberattacks and potentially fraudulent loss for many e- commerce and online companies. However, this does not imply that businesses should limit innovation and spending on cutting-edge digital client experiences. This implies that businesses should embrace technological innovation to safeguard their online platforms from fraud and security risks. How to Protect Digital Innovation Organizations can take the following proactive steps to help them reduce risk in their digital channels: Neutralize Harmful Bots: Bots account for more than half of all Internet traffic, and while some (such as chatbots and search engine crawlers) are helpful, the bulk is malevolent. Bad bots scale automated attacks that steal items, hoard inventories, create false accounts to commit fraud, sluggish the performance of websites and apps, and do ATO via credential stuffing. Take charge of bot activity on your infrastructure and websites with sophisticated bot mitigation solutions that automate ATO prevention and employ deep client-side signal gathering, aggregated information gathering, and machine learning to stop bot attacks in real-time.

4. Get Rid Of Manual Fraud: Attackers will get around anti-automation measures with more difficult-to-monitor manual fraud when the ROI is great enough. It is necessary to assess the integrity of users' identities and determine their motivations for detecting manual ATO fraud in digital channels. Still, this work must be done without degrading the experience of real customers. Modern, sophisticated fraud solutions use AI-based algorithms that are trained on human data that has been verified to judge truth and intention to prevent manual fraud on a real-time basis without interfering with the actual customers' customer experience. Without interfering with the consumer experience, reduce fraud: Organizations are in a position to scale back traditional anti-fraud defenses that complicate their customer journey processes if they take steps to mitigate automated bot traffic, implement safeguards against manual fraud, and converge fraud and privacy teams for strong cooperation and more effective response to exploits. To put it another way, when fraud risk is under control, firms may substantially remove tedious CAPTCHA puzzles and other challenge-response tests, greatly improving the user experience for actual consumers while avoiding the introduction of fraud risk into your digital platforms. Conclusion: It's unnecessary to develop your e-commerce sites and other online services to increase your danger of cyberattacks. Powerful bot and fraud mitigation tools will assist you in staying one step ahead of attackers while removing annoying security snags to enhance client safety and the online experience.

5. Source URL: https://tealfeed.com/advice-adopt-digital- innovation-without-running-gkkqw