Page 90 - Security Today, July/August 2019

Gaining Customer Trust In a new era of digital identities, data breaches are growing and here to stay
BRy Christina Luttrell
ecent years have confirmed that data breaches are here to stay. Breaches are growing both in intensity and frequency. According to the Identity Theft Re- source Center, more than 5.9 million records have been breached in 2019 and we aren’t even halfway
through the year.
The effects of these breaches are still unfolding as consumers
and businesses cope with an environment of cyber insecurity where personal information from chronic breaches filtrates the dark web, phishing attacks are common and fraud is a constant. From both a business and consumer perspective, concerns about identity as well as trust are heightened.
IDology’s Sixth Annual Fraud Report revealed that nine of 10 businesses believe recent large-scale data breaches have directly im- pacted fraud in their industries over the last twelve months, resulting in more synthetic identity fraud and customer friction, as well as an increase in compliance and regulation requirements.
Consumers, as expected, are also worried about security, with 84 percent expressing they are highly to moderately concerned about their personal information being at risk due to data breaches, accord- ing to IDology’s Second Annual Consumer Digital Identity Study.
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Some of the key trends we’re observing across industries, as well as consumer segments, are:
Unprepared for the Increase in Mobile Fraud
Mobile devices have become the preferred way for many consumers to manage their lives and conduct business. With this shift to mo- bile first, fraudsters are increasingly turning their focus to exploit the channel’s vulnerabilities, evidenced by a 117 percent increase in mo- bile fraud in 2018 compared to the previous year.1
In the last 12 months, consumers opened more new accounts on mobile devices than on computers, according to IDology’s Second Annual Consumer Digital Identity Study. As mobile preference as well as fraud increase, it’s unsurprising that many companies feel unprepared. In fact, 32 percent of companies stated they don’t feel prepared to detect and prevent mobile fraud.
Companies that are embracing mobile to capture more busi- ness will positively provide consumers the type of experiences they require, but need to also respond to the ever-changing fraud trends by securing those channels to deter fraud without hindering the consumer experience.
CYBERSECURITY
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