Patching Problems Perpetuate Fraud Challenges
Online fraud is a complex problem requiring a sophisticated solution. We all know it’s on the rise. But there’s no single, definitive cause. Instead, a confluence of factors including digital transformation, the rise of dark web sites, credential stuffing tools and more have come together to create a unique challenge for organizations. Poor enterprise security ranks high on this list.
The bad news is that it’s showing no signs of improving, perpetuating downstream fraud and making the case for investments in advanced risk decisioning tools even stronger.
The Problem With Poor Security
Retail and finance businesses are among the worst at updating their computer systems to the latest operating systems. Why is this important? Because older platforms like Windows 7 don’t receive the vital security updates, or patches, that organizations need to keep themselves safe from attackers. If hackers discover new vulnerabilities in these platforms, IT security teams must put in place extra mitigations or risk suffering a potentially catastrophic attack. Apart from this, older platforms may have fewer built-in security features, again giving an advantage to the bad guys, who are always on the lookout for “low-hanging fruit” to target.
It’s not all about patching, as important as this is. Security gaps could also appear in organizations if cloud storage accounts are poorly configured. Or if poor staff training and limited endpoint security lead to privileged account holders being phished or otherwise compromised.
The end result is the same: hackers get access to huge stores of customer data.
The Same Coin
Why does this matter? Because corporate IT security and fraud prevention are two sides of the same coin. Poor enterprise security leads to massive data breaches. This data, whether PII or account log-ins, ends up on the dark web where it is sold to fraudsters who use it to impersonate victims online. If all organizations were to follow best practices in IT security, it would reduce the pool of available data that is fuelling the modern fraud epidemic. It would make the job of the scammers much harder.
Unfortunately, that doesn’t seem to be happening. Despite the introduction of new data protection legislation such as the GDPR in Europe and mooted similar laws coming in the US, security is often treated not as a strategic business imperative but a block on innovation and growth.
This makes it more important than ever that organizations find advanced, adaptive fraud prevention platforms to tackle the rising threat to the bottom line and corporate reputation. But not all solutions are created equal. Organizations need platforms that can effectively process large volumes of data from various sources; have capabilities to empower fraud teams to write and implement manual rules quickly and easily; and have machine learning to detect complex patterns human eyes might miss. Crucially they need to adapt over time as fraud continues to evolve.
This is the value of Simility’s Adaptive Decisioning Platform. It helps offer firms the peace-of-mind that – even as data breaches continue to fuel downstream fraud – organizations will be well placed to help minimize associated losses, while reducing operational costs and eliminating customer friction.
To learn more about how Simility’s Adaptive Decisioning Platform can help your organization fight evolving fraud, schedule a demo now.
Latest posts by Hassan van de Riet (see all)
- Patching Problems Perpetuate Fraud Challenges - November 1, 2019
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