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Christophe Van de Weyer is the Chief Executive Officer of Telesign. “There’s nothing to fear but fear itself,” Franklin Roosevelt famously once said. However, the digital world is fast becoming an exception, with threats so significant and protections against them so lacking that our anxieties are more than justified.
After all, cybercriminals victimized more than 300 million people in 2023. Additionally, hackers launched nearly 9 million phishing attacks globally last year, tricking unsuspecting individuals into sharing sensitive data. People are anxious about the possibility of fraud as AI ramps up across society.
In a recent survey, the Telesign Trust Index , 58% of people worldwide are more fearful of becoming fraud victims now than two years ago. It’s no surprise given the fact that one in three people globally report being a victim of digital fraud, with more than half reporting the crime occurred in the past six months. More surprisingly, there are still a significant number of Americans who don’t believe AI affects their susceptibility to digital fraud.
This is not just puzzling but concerning when considering the new wave of AI-inspired cybercrime. Fraud Has Major Consequences It would be rational for people to express less fear about digital fraud if they were taking the necessary precautions to protect themselves from it. However, this isn’t always the case.
They still rely on insufficient passwords or don’t follow basic fraud protection protocols, such as securing accounts with strong multi-factor authentication (MFA). Fraud victims don’t just report financial repercussions from digital crime. They report experiencing anxiety, trust issues, depression and stress post incidents.
The Trust Paradox Organizations, too, have an irrational relationship with digital security. On one hand, most know that the digital world only runs well when trust is high. On the other, many organizations haven’t fully implemented data protection best practices.
This is doubly illogical given identity verification methods have never been more plentiful, easy to implement and effective. Data from Microsoft has shown, for instance, that MFA has been inactive in approximately 99% of all successful digital intrusions. Osterman Research discovered that while 90% of organizations believe MFA to be an effective identity security tool, only 5% said it covers every employee and app, even as about 8 in 10 were compromised by identity attacks in the last 12 months.
This is more concerning for organizations when you consider that most people believe that the companies they engage with are responsible for protecting their digital privacy. Many data breach victims stop associating with the brands they hold responsible for not protecting their data. AI And Combatting Fraud The gravity of these concerns underscores the urgent need for effective countermeasures.
Fortunately, there is some good news amidst these challenges. The growing role of AI in fraud attacks has prompted some businesses to turn the tables on hackers and start leveraging AI precisely to improve fraud prevention and cybersecurity measures. In digital identity, AI and machine learning work behind the scenes to preserve trust in our digital world by identifying fraudsters at lightning speed.
It also provides deep insights into how fraudsters think, behave and operate. That intelligence grows over time, meaning we are collectively building the capability to see around corners in order to outsmart criminals. However, effective adoption does not mean ‘out with the old, in with the new.
’ Savvy companies use a combination of MFA, digital identity verification, AI and machine learning and risk analysis to block fake accounts and establish trust with legitimate customers in milliseconds. Striking A Balance Companies must strike a delicate balance between innovation and customer trust. This is especially crucial in the retail industry, where companies need to find ways to combat digital fraud without impeding the customer experience.
To achieve this, many retailers are now seamlessly integrating digital identity verification and AI-based fraud protection into key touchpoints along the customer journey, creating more secure yet customized experiences. This approach aligns well with evolving customer preferences. Contrary to the once-prevailing wisdom that people detest friction in their digital experiences, recent data shows that 8 in 10 consumers now welcome additional security measures to safeguard their digital assets.
Businesses must also prioritize educating their employees about emerging threats and the critical importance of identity authentication. This is important because criminals view any employee as a potential point of access. By combining security-conscious employees with robust digital identity verification and AI-powered fraud protection, enterprises can significantly enhance their overall security posture.
Securing Our Digital Bonds It is my sincere hope that institutions and citizens alike wake up to the urgent need to build greater levels of protection into every digital interaction, if we want our digital world to be a safe place. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?.
