One of the changes brought by the Covid-19 pandemic is the change in workplaces and work practices. Digital transformation across numerous industries enabled firms to provide remote working facilities for their employees. Although the AI-Powered Identity Verification to Counter Cyber attacks scenario is relatively convenient and cost-effective. It has its share of flaws and vulnerabilities, among which the threat of cyber attacks takes the first place. Since everything is online, it is easier for cyber criminals to manipulate systems as well as employees or customers into believing fake identities.
Cybercriminals have been targeting businesses for data breaches, identity theft, account takeover attacks, and much more. Therefore, firms must understand such looming threats and make an action plan to counter them.
Why Should Businesses be on Alert?
According to the Financial Hardship Survey, Covid-19 was responsible for 31% of all digital frauds, with phishing attacks accounting for 28% of all fraud incidents..
This is only example of criminals cyber attacks who have successfully robbed businesses and abused their digital vulner abilities. Enterprises, therefore, need to consider whether they know their customers with confidence. As compared to a traditional setup, it is much easier to use false identities in the digital space. Since the customers are not physically present. Fintech companies need to be more careful while on boarding customers and opening new accounts using digital interfaces.
- Credential Stuffing
A “Credential Stuffing” attack is another major danger that must be discussed here. Such attacks involve cyber criminals making attempts to gain access to accounts on numerous websites by using AI-Powered Identity Verification to Counter Cyber attacks passwords and usernames leaked in other major data breaches. Many organizations have come to realize that threats like credential stuffing and account takeovers have been on the rise since the onset of the pandemic. These attacks assist fraudsters in gaining unauthorized access to user accounts which results in incidents of ransomware attacks and data breaches. Botnets and automated software play a crucial role in executing these attacks.
Cyber criminals utilizing Artificial Intelligence software for carrying out advanced attacks is not a new concept. These attackers are capable of manipulating AI algorithms and data sets to achieve desired results. This demands a need for stronger identity verification procedures.
AI-Powered Identity Verification
According to Research and Market’s report, the global Identity Verification Market Size post-Covid-19 is forecasted to grow at a CAGR of 15.6% between the years 2020-2025, with the value rising from USD 7.6bn in 2020 to USD 15.8bn by 2025.
Businesses must adopt fully-automated (Know Your Customer) identity verification software for accurate customer identification and verification to deal with the growing cases of cyber attacks. Here are some verification services of AI and machine learning in this field:
- Video KYC (Know Your Customer)
- Face Verification
- Document Verification
- Address Verification
- Consent Note Verification
- 2-Factor Authentication
- Facial Biometric Authentication
Apart from taking advantage of these automated systems for verifying customers. Companies should also establish minimum KYC and AML (Anti-Money Laundering) procedures to stay in compliance with global regulations. By leveraging AI and machine learning for implementing Customer Due Diligence (CDD), systems will enable threat detection on time while also fulfilling regulatory obligations.
Additionally, securing sensitive information with biometrics and multi-factor authentication makes it difficult for hackers to penetrate through high-level security systems. Facebook is the company that recoganised the value of automated verification. If the account’s identity or behaviour appears to be suspicious. The profile will be blocked until the account owner identifies themselves via Facebook’s Page Publisher Authorization Process..
Many companies are moving to automated digital identity authentication solutions to provide the best security for their customers. AI-driven verification resources to fight digitally empowered cyber criminals for as long as the remote working process is expected to last.