No one can say for certain what the “new normal” will look like. However, one trend is surfacing: the world will be more digital tomorrow than it was yesterday.
In a conversation on “The Download,” Daniel Cohen, Head of Anti-Fraud Products and Strategy, RSA explained that future digital innovation will normalize FinTech and mainstream digital payments. While this trend will enhance end-user convenience, it will also increase the risk of digital fraud and cyberattack risk. As organizations begin to think about their future state in the new normal, it will be essential for information security, risk management and fraud prevention teams to work together. As fraud expert Neira Jones writes, “the failure to address cyber risk invariably leads to fraud.”
We see this challenge unfolding amid the current business disruption. Cybercrime is taking form in a number of ways and threatening both consumers and organizations at a rapid pace. From phishing to account takeover, social media fraud and more, cybercriminals are exploiting fear and urgency to exploit their victims.
The key to managing fraud risk today and tomorrow is through an omni-channel approach. Organizations operate across an increasing number of digital channels, with users logging in and transacting from many different places and devices. The multitude of people, points of access and transactions creates an attractive target for cybercriminals. Fraud prevention teams burden the challenge of determining legitimate transactions from fraudulent ones.
Cohen describes a popular cross-channel fraud scenario in which cybercriminals acquire account details from an organization’s call center and then use those stolen credentials to log into an account. Unless an organization can connect the point of the breach to the login, fraud prevention becomes unfeasible. The ability to cross reference data and identify fraud in real-time is one of the fundamental issues facing businesses during this disruption and will become an even greater digital risk in the future.
According to Cohen, over the next six months, organizations need “to think long-term” about their fraud prevention strategy and ensure that it’s built to address the risks of an omni-channel world. If Digital Transformation 2.0 is the future, then the number of digital channels available to consumers will proliferate at an unprecedented rate. The key for organizations is adapting to the changing world and preparing the business now for a more digital future.
Amid the changes that this disruption will bring, don’t let your fraud prevention strategy go untouched. Evolve and adapt now for whatever the “new normal” holds for your business and consumers.
See how RSA Adaptive Authentication can help your organization manage fraud risk in an omnichannel world and how RSA Adaptive Authentication for eCommerce can help protect online and digital transactions.
Category: RSA Point of View, Blog Post
Keywords: Fraud, Anti-Fraud, Digital Risk, Digital Risk Management, Omnichannel, Fintech