Category: General

SSN (Social Security Numbers) data breaches have become common, and they expose the victims to cyber-attacks and identity theft. Social security numbers are one of the most sensitive pieces of personally identifiable information, leaving the victims vulnerable to all kinds of frauds.

How Does an SSN Data Breach Happen?

Recent data breaches highlight vulnerabilities in public and private institutions. Fraudsters work relentlessly to find a weak point in the system to exploit. Fraudsters rely on multiple methods (phishing scams, unpatched software, identity theft) to access confidential databases. 

In most cases, the data breach isn’t discovered until significant damage is done.

How to Check If Your SSN Was Leaked?

Users can easily check if their SSN has been leaked. Some simple steps include:

• Contact organization involved in the breach: If you believe your SSN was leaked in a data breach, the simple thing to do is to contact the organization involved in the breach. Organizations that go through a data breach generally keep updates on all impacted individuals.
• Use government resources: There’s a government website you can use to keep track if your SSN and other information has been leaked. Check your information on identitytheft.gov. 
• Lookout for suspicious activity: If you suspect your information is missing, you should pay extra attention for suspicious activity on your account.

Tools You Can Use to Verify Your SSN after a Data Breach

There are a couple of ways you can verify your SSN after a data breach. Steps you can take:

• Credit monitoring services: Companies like Experian, Equifax, and TransUnion offer free credit monitoring services for users who are affected by data breaches. 
• Dark web scanning tools: Some identity protection services scan dark web if your SSN is up for sale.
• Fraud alters: You can set up fraud alerts through your bank or credit card providers to help you spot fraudulent activities.

Steps You Should Take if Your SSN Was Leaked in a Data Breach

If you have been unfortunate and your SSN was leaked in a data breach, then there are a couple of steps you can take to secure your SSN.

1. Report the Breach: Use the Identity Theft website to file a report with the Federal Trade Commission (FTC).
2. Request a Credit Report: Get your free credit reports annually from your banking provider.
3. Notify your Bank: Set up fraudulent alerts at your bank and ask them to notify you if there’s any suspicious activity.
4. Secure all Online Accounts: Make sure you update all your passwords and enable multi-factor authentication for your accounts to keep fraudsters away.
5. Freeze your Credit: Contact all 3 major credit bureaus (Equifax, Experian, TransUnion) to freeze your credit. This prevents fraudsters from opening any new accounts in your name. 
6. Credit Fraud Alerts: Place a fraud alert on your credit file to notify lenders to be extra vigilant while verifying your identity.

Long-Term Protection after an SSN Breach

1. Using Credit Monitoring Services

You can set up fraud-related alerts for any changes that happen to your credit file. This means you will be notified every time there’s a change to your credit file (opening a new account, address update, mobile update, etc). A lot of services also offer ID theft insurance to cover costs related to fraud recovery.

2. Regularly Check Credit Reports

Another way to keep yourself protected is by reviewing your credit reports regularly to look for any red flags. If you want free credit reports, you can get annual reports from annualcreditreport.com.

How to Protect Yourself From Future SSN Breaches?

1. Secure your SSN with MFA

Multi-factor authentication is an incredible tool to keep yourself secured from fraud. Add multi-factor authentication (MFA) to your bank accounts/credit cards, etc. MFA offers an extra layer of security, which requires you to enter a code to access an account/service. 

2. Limit sharing your SSN

As a rule, you should try to limit sharing your SSN with an account/service provider unless necessary. Also, ask questions about why your SSN is being requested and if alternative identification is needed. 

FAQs

What is an SSN breach?

An SSN breach occurs when Social Security numbers (SSNs) are exposed or stolen due to data leaks, cyberattacks, or insider threats. This can lead to identity theft, fraud, and financial loss.

How does an SSN breach happen?

SSN breaches typically occur through:

• Phishing attacks – Scammers trick individuals into revealing their SSNs.
• Data breaches – Hackers infiltrate databases of businesses or government agencies.
• Malware & spyware – Malicious software steals personal information.
• Physical theft – Lost or stolen documents containing SSNs.

What are common ways to protect yourself after an SSN breach?

• Monitor your credit reports – Check for unauthorized activity.
• Place a fraud alert or credit freeze – Prevent new accounts from being opened.
• Use identity theft protection services – Get alerts for suspicious activity.
• File an identity theft report – Report fraud to the FTC and authorities.
• Be cautious with personal information – Avoid sharing SSNs unless necessary.

Data breaches have become incredibly common in recent years and they keep businesses on their toes. Businesses need to know what a data breach is, how to prevent it and keep sensitive information safe.

In this guide, we’ll dive deep into what is a data breach and tips to prevent it.

What is a Data Breach?

A data breach happens when someone (most likely a fraudster or a bad actor) gains unauthorized access to sensitive/confidential information. The information can be:

• Credit card & debit card numbers
• Social security numbers
• Personally identifiable information

The most common ways for fraudsters to gain access to this information is by hacking, phishing, or gaining access to a physical device (laptop/mobile). The impact of a data breach can be massive, leading to severe financial and legal consequences. 

Data breaches shake businesses to their core. They’re not just an IT department problem, they impact every vertical of the business. In just the first half of 2024, the number of data breach victims crossed more than 1 Billion.

Businesses that handle large corpus of sensitive information (banks, FIs, data banks), need to know how data breaches happen and how to prevent them. 

Common Types of Data Breaches

Having a clear understanding of types of data breaches can help businesses figure out how to prevent them. Here are the most common types of data breaches:

1. Phishing Attacks

Phishing scams are super common and thousands of businesses are impacted each year. A fraudster sends fake emails or messages that mimic a trusted source (bank, FIs, service provider). The fake email/message aims to push users to share sensitive information. 

Most users often have no idea that they’re giving up their information to a bad actor. When they do, it’s way too late.

2. Malware and Ransomware

Malware-based attacks involve using malicious software to gain access to a closed or unauthorized system. Ransomware is another type of software-based attack that locks up a victim’s device & data. The fraudsters then ask for payments to unlock the device. 

If a business is attacked by Ransomware, it can shut down entire businesses, causing significant downtime & financial loss.

3. Insider Threats

Some data breaches are caused by internal parties. It could be intentional or unintentional. Internal threats can involve employees, contractors, or business partners with access to sensitive information. These parties can misuse the sensitive information, or share the information with someone bad actors. 

4. Physical Theft

Data breaches can also happen via physical methods. As we mentioned earlier, sometimes fraudsters steal physical devices (laptops, USB drives, phones, paper records). Businesses need to follow safeguards that protect these physical devices from falling into the hands of the wrong individuals. 

5. Credential Stuffing

Credential stuffing is objectively a new type of fraud, it’s where the hackers use stolen user credentials to break into accounts. 

Credential stuffing works well as individuals tend to reuse the same passwords across multiple websites. The way to prevent this is by using a combination of unique passwords. A password manager is a great way to prevent this type of data breach.

Data Breach Prevention Strategies

Preventing data breaches requires a combination of technology, policies, and awareness.

1. Strong Password Policies

One simple method to prevent data breaches for businesses & individuals is by enforcing strong password policies. Individuals should use a mix of strong passwords by combining letters, numbers, and symbols. 

Businesses should enforce a password manager on every device that generates new, strong passwords every time.

2. Regular Software Updates

Updating your software regularly ensures there’s no weakness for fraudsters to explore. Outdated software often has vulnerabilities that bad actors love to exploit. Keeping your software up to date can help you close the security gaps and protect your systems. 

3. Employee Training

The primary factor behind data breaches is human error, Businesses should aim to train employees about the risks of phishing, the importance of secure passwords, and how to safeguard sensitive information. 

4. Multi-Factor Authentication (MFA)

Multi-factor authentication (MFA) acts as another layer of security in the verification process. MFA requires users to verify their ID through multiple layers, such as – 

• Password protection (First layer)
• One-time password at the time of login (Second layer)

With MFA, users will be informed whenever someone is trying to log in to their accounts without their authorization. 

5. Encryption of Sensitive Data

By encrypting sensitive data, businesses can convert data into a code that can only be read with the right key. Even if fraudsters get their hands on sensitive information, they won’t be able to use it without a decryption key. 

Protective Measures Against Data Breaches

Even with the best prevention techniques, data breaches can still happen. Businesses need to implement strong protection measures to minimize the damage. Here are all the protective measures businesses can implement:

1. Firewalls and Intrusions Detection Systems

Firewalls act as a barrier between your information and outsiders trying to gain unauthorized access. Intrusion detection systems monitor your devices for unusual activity or signs of a breach. Combined, these technologies offer great protection against cyberattacks.

2. Secure Backup Solutions

Businesses should invest in backup solutions that regularly back up data. If a breach does happen, it ensures businesses can recover their data quickly, reducing downtime and loss. 

3. Access Control Management

Businesses can significantly prevent the risk of data breaches by limiting data access to only those who need access. This can significantly restrict the damage done by insider threats. 

4. Monitoring & Logging

By continuously monitoring and logging network information, businesses can detect suspicious behavior early, increasing the chances for a quick response to potential breaches. 

Detailed logs can help businesses understand the weak points and prevent the breach from happening again. 

5. Implementing Third-Party Software

Businesses can use third-party verification software such as DIRO document verification to ensure all customers are onboarded with proper checks. Businesses can use this to cross-reference data any time they suspect chances of fraud.

Summing Up

Data breaches can cause severe damage to businesses. By understanding the root causes, what they are, and the type of breaches, and by implementing effective prevention, businesses can significantly reduce the level of data breach risk.

In our increasingly digitized world, the landscape of financial crime has transformed dramatically. Criminals have adapted to technological advances, giving rise to two particularly nefarious activities: cyber laundering and cyberterrorism.

These emerging threats demand urgent attention and a thorough understanding not only from law enforcement agencies but also from financial institutions and regulatory bodies. This blog post aims to explore the intricacies of cyber laundering and cyberterrorism, their processes, evolving trends, and the technologies that can help combat these threats.

Understanding Cyber Laundering

Cyber laundering represents the digital evolution of traditional money laundering. It involves the use of online platforms, including cryptocurrencies and online banking, to obscure the origins of illicit funds and facilitate their transfer.

Unlike traditional money laundering, which often relies on physical locations—such as casinos and banks—cyber laundering is conducted entirely online, making it particularly challenging to detect and prosecute.

The Process of Cyber Laundering

Cyberlaundering typically follows a three-stage process that mirrors the conventional money laundering model:

1. Placement: In this initial stage, illicit funds are introduced into the digital ecosystem. Cybercriminals often utilize anonymous transactions to obscure the origins of these funds.
2. Layering: This stage involves a series of transactions across various jurisdictions and currencies to further disguise the illicit funds’ origins. Techniques in this phase can range from employing multiple cryptocurrencies to creating complex webs that obscure the money trail.
3. Integration: The final phase aims to reintroduce the “cleaned” funds into the legitimate financial system—often through investments, asset purchases, or seemingly legitimate business operations.

Types of Cyber Laundering

Cyber laundering can be categorized into two broad types:

1. Instrumental Digital Laundering: This type leverages digital tools merely to facilitate the various stages of the money laundering process.
2. Integral Digital Laundering: A more complex subtype that occurs entirely within cyberspace, utilizing digital assets like cryptocurrencies. This method allows for the movement of funds without leaving a tangible trace, creating significant challenges for investigators.

Methods Used in Cyber Laundering

Criminals employ an array of sophisticated techniques to execute cyber laundering, including:

1. Cryptocurrency Transactions: Digital currencies such as Bitcoin offer high levels of anonymity, making them attractive for the movement of illicit funds.
2. Online Gaming: Transactions involving virtual goods and in-game currencies can provide a means for untraceable financial exchanges.
3. Digital Wallets and P2P Exchanges: Payment platforms like PayPal complicate the tracing of transactions due to their peer-to-peer nature.
4. Crowdfunding Platforms: Illicit funds can be intricately woven into seemingly legitimate crowdfunding campaigns.
5. High-Volume, Low-Value Transactions: Conducting numerous small transactions can help evade detection by regulatory authorities.

The Threat of Cyberterrorism

Cyberterrorism refers to the use of the internet and technological tools to threaten or attack critical infrastructures. Such acts can cause significant physical harm, economic losses, or induce panic within society. The ramifications of cyberterrorism extend beyond mere financial crime; they jeopardize national security and public safety.

Noteworthy Cyberterrorism Attacks

Several notable incidents have underscored the urgency and seriousness of cyberterrorism:

1. SolarWinds Attack (2020): This pivotal supply-chain attack compromised multiple government and corporate systems, highlighting vulnerabilities in critical infrastructure.
2. WannaCry Ransomware Attack (2017): A globally impactful ransomware attack that infected over 200,000 computers across 150 countries, demanding ransom payments for data recovery.
3. NotPetya Attack (2017): Disguised as ransomware, this attack targeted Ukrainian businesses, causing widespread disruption and devastation.
4. Operation Cloud Hopper: A global cyber espionage campaign orchestrated by a Chinese state-sponsored group, illustrating the international ramifications of cyberterrorism.

Trends and Insights

1. Cyber Laundering in APAC

The Asia-Pacific (APAC) region is rapidly becoming a hotspot for cyber laundering activities, driven by rapid technological advancement and a burgeoning fintech sector. The diverse regulatory environments across APAC countries create loopholes that cybercriminals are eager to exploit. Rapid digital transformation has led to an unprecedented increase in new financial services, making it critical to understand emerging trends in compliance and enforcement.

2. Regulatory Challenges

As cybercriminal tactics grow more sophisticated, financial organizations must adapt their compliance strategies swiftly. A robust understanding of technological advancements and emerging threats is essential for effectively guarding against cyber laundering. Establishing an agile regulatory framework that keeps pace with technological innovations is vital.

3. The Role of Technology

In the fight against cyber laundering and cyberterrorism, technology is a powerful ally. Machine learning algorithms and data analytics can be deployed to develop innovative compliance solutions capable of detecting suspicious activities in real-time. Investing in advanced technologies can assist institutions in identifying potential threats before they escalate.

Conclusion

The complexities and dangers posed by cyber laundering and cyberterrorism necessitate a multifaceted approach involving collaboration among regulatory authorities, financial institutions, and law enforcement agencies. The ongoing cat-and-mouse game between cybercriminals and authorities requires continuous vigilance, updates in regulatory measures, and particularly the adoption of advanced technologies. Organizations like Tookitaki are playing a crucial role in developing innovative compliance solutions designed to help institutions combat these evolving threats while adhering to anti-money laundering (AML) regulations.

In summary, as the digital landscape continues to evolve, so too must our defenses and methodologies for combating cyber laundering and cyberterrorism—ensuring that society can enjoy the benefits of digital innovation without falling prey to its darker applications.

As technology continues to evolve, so too does the potential for cybercrime. Every year, the number of cyberattacks are growing significantly. The costs of cyberattacks are growing every year, on average, it’s expected to grow to $24 trillion by the year 2027. Businesses need to understand and prepare for cybersecurity threats is more critical than ever.

Is your business ready for the cyber risks that lie ahead?

In this guide, we’ll talk about the top 10 cybersecurity threats of 2024 and how to protect your business from them.

Top 10 Cybersecurity Threats in 2024

Cybercrime is one of the fastest-growing risks for businesses in 2024. Cybercriminals tend to target businesses across all industries and of all sizes. The larger and more successful your business, the greater the risk of a cyber threat.

1. Social Engineering

Social engineering remains one of the most dangerous hacking techniques because it exploits human error rather than technical vulnerabilities. It’s easier to trick a person than to breach a security system, which is why 74% of all data breaches involve some form of human interaction. 

Tactics like phishing, spoofing, whaling, and baiting have become more sophisticated, with advancements in deepfakes and generative AI making these attacks harder to detect.

Common Social Engineering Attacks:

• Phishing: Fraudulent messages designed to trick individuals into revealing sensitive information.
• Spoofing: Deceptive emails or websites that appear legitimate.
• Whaling: Targeted phishing aimed at high-ranking executives.
• Baiting: Enticing victims with fake offers to install malware or reveal personal information.

2. Third-Party Exposure

Hackers often target third-party networks that have access to larger, more secure systems. This type of attack is increasingly common, with 29% of all data breaches in 2023 linked to third-party vulnerabilities. A notable example is the 2024 AT&T breach, which exposed sensitive data of over 70 million customers.

3. Configuration Mistakes

Even professional security systems can contain configuration errors, leaving vulnerabilities that hackers can exploit. Misconfigurations, such as using weak passwords or failing to update software, are common issues that can lead to major data breaches.

Common Configuration Mistakes:

• Default Device Settings: Not changing factory settings on network devices.
• Network Segmentation: Failing to separate sensitive information on different networks.
• Software Updates: Not regularly updating and patching software.

4. Artificial Intelligence Cyber Threats

AI has revolutionized cybersecurity, both for defenders and attackers. Cybercriminals are using AI to automate attacks, making them more frequent and sophisticated. In response, businesses are adopting AI-driven security systems to stay ahead of these threats.

5. DNS Tunneling

DNS tunneling is a technique that allows attackers to secretly transmit data by hiding it within regular DNS traffic. This method is effective and relatively easy to execute, making it a common attack vector.

6. Insider Threats

Insider threats, whether intentional or accidental, can cause significant damage. These threats are difficult to detect because insiders already have access to sensitive systems. Whether it’s an employee unintentionally falling for a phishing scam or deliberately leaking data, insider threats pose a serious risk.

7. State-Sponsored Attacks

State-sponsored attacks are on the rise, often targeting critical infrastructure, military organizations, or government bodies. These attacks are highly sophisticated and can have devastating consequences, as seen in recent conflicts involving nation-states.

8. Ransomware

Ransomware is one of the most financially devastating cyber threats. The average ransom has skyrocketed to $2 million in 2024, a 500% increase from 2023. Ransomware not only disrupts operations but also incurs significant recovery costs.

9. Trojan Horses

Trojan Horses are malicious software disguised as legitimate code. Once installed, they can steal data, control devices, or install additional malware. Despite being an old technique, Trojan attacks remain a common and serious threat.

10. Drive-By Downloads

Drive-by attacks occur when visiting a compromised webpage results in automatic malware downloads. These attacks are often hidden in fake advertisements or pop-ups, making them difficult to avoid without proper security measures.

Staying Ahead of Cyber Threats

Navigating the ever-evolving landscape of cybersecurity can be overwhelming. While no system can guarantee complete protection, combining strong cybersecurity measures with adequate insurance can help mitigate the impact of a successful attack. By staying informed and proactive, you can protect your organization from the growing threats in 2024 and beyond.

Sanctions screening is a crucial part of the eKYC process. eKYC is when a business onboard a customer/business digitally. This process is necessary for financial institutions and other businesses looking to onboard customers globally.

Using eKYC, businesses can minimize risks, prevent fraud, and meet compliance. In this blog, we’ll talk about Sanctions screening and its importance for financial institutions.

What Are Sanctions?

Sanctions are restrictions set up by the government and international bodies to achieve policy and security objectives. These measures can target individuals and countries and include travel bans, asset freezes, arms embargoes, or economic restrictions. Sanctions are made by governments to influence behaviors, deter illegal activities, and more.

Common types of sanctions include:

• Economic sanctions
• Diplomatic sanctions
• Military sanctions
• Sporting sanctions
• Environmental sanctions

Why is it important?

Sanctions are important for legal and regulatory reasons, to avoid fines, and to sustain reputations. One major reason governments and other entities impose sanctions is to maintain global security.

Sanctions prevent the flow of resources to entities such as terrorists, human traffickers, or groups developing weapons of mass destruction. In some situations, sanctions are an absolute must.

Important in Financial Institutions

Sanctions screening is an essential part of financial institutions while onboarding. Financial institutions are always the first choice for fraudsters for money laundering. Including the sanctions screening in the onboarding process can allow financial institutions to prevent illegal activities, protect their assets, and also make sure that customers don’t engage with sanctioned individuals.

Anti-money laundering (AML) regulations are designed to prevent fraudsters from using the bank’s networks to clean the money obtained by illegal methods.

Consider a bank that doesn’t have a sanctions policy in place, most likely the number of frauds will go up. For customers, they can be taken advantage of without even knowing about it.

How Does Sanction Screening Work?

Sanction screening involves a number of steps:

• Data Collection – Gathering customer information from every available source
• Screening – Comparing customer data against sanction lists, watch lists, and PEP lists.
• Risk Assessment – Evaluating the risk level associated with each customer or transaction.
• Monitoring – Regularly monitoring customer transactions and behaviors for any sudden changes or suspicious behaviors.
• Reporting – Reporting any matches or suspicious activities to relevant authorities.

Key Sanctioning Bodies

Several key organizations are responsible for issuing and enforcing sanctions. These include:

1. United Nations (UN)

The UN imposes sanctions to maintain or restore international peace and security. These sanctions are typically adopted by the Security Council and can include asset freezes, travel bans, and arms embargoes.

2. European Union External Action Service (EU EEAS)

The EU EEAS manages the EU’s foreign policy and security. It implements sanctions to promote international peace and security, uphold human rights, and combat terrorism.

3. Office of Foreign Assets Control (OFAC)

OFAC, part of the U.S. Department of the Treasury, administers and enforces economic and trade sanctions. These sanctions are based on U.S. foreign policy and national security goals.

4. His Majesty’s Treasury (HMT)

HMT oversees the UK’s financial and economic policy. It implements sanctions to meet the UK’s foreign policy and national security objectives.

When Should Financial Institutions Conduct Sanctions Screening?

Financial institutions should conduct screenings at multiple touchpoints during a customer lifecycle:

• Onboarding – During the initial onboarding process make sure that the customer is not a sanctioned entity.
• Continuous monitoring – Continuously monitor the customer throughout their lifecycle and look out for any changes in behavior, habits, and any changes in their status.
• Transaction screening – For specific transactions, especially cross-border transactions, to ensure compliance with sanctions. 

Common Challenges in Sanctions Screening

Sanctions screening is not a flawless solution for you or your company. Various factors can affect its reliability:

• Data Quality: Inaccurate or incomplete data can result in false positives or negatives.
• Complex Regulations: Navigating the constantly evolving regulatory landscape is challenging.
• Resource Intensive: Effective sanctions screening demands significant resources, including advanced technology and skilled personnel.
• False Positives: A high rate of false positives can lead to operational inefficiencies and increased costs.

For instance, a large bank might encounter hundreds of false positives daily due to common names or incomplete data. Each potential match needs to be investigated by compliance staff, which is both time-consuming and expensive.

Fraud prevention isn’t just about ticking off the regulatory boxes, ID fraud prevention is the most important factor for businesses today. According to a report, over 70% businesses consider identity and fraud prevention as a part of their unified business strategy. 

The combined cost of ID and fraud due diligence is lower than the average cost of fraud. This means tackling fraud before it happens can not only save money but also improve customer’s trust in a business.

Importance of Building Trust in the Age of Global Commerce

It is crucial for businesses to build trust in this age of digital commerce and remote customer relationships.

The best way businesses can fight fraud is by sharing consumer intelligence. Shared intelligence is a powerful tool that creates a safer environment and improves the online experience for both businesses and consumers. 

Identity Data Networks 

Shared data networks are just the tool that businesses globally need to shine a light on fraud that goes unnoticed. Data networks have the potential to act as a digital referral system, which can highlight the reputation of digital identities and identity attributes.

Shared Consumer Intelligence 

Shared consumer intelligence combines millions of consumer identity data that’s collected by businesses globally. These identity attributes are derived from applications and transcriptions taking place across the network.

Shared consumer intelligence includes data broken down into multiple categories:

• Person – forename, surname, and date of birth
• Address – house number/apt number, street name, town, postcode, and country
• Device – mobile or telephone number, email, and IP address
• Document – national ID documents, passport, or driving license number
• Bank – account number & other account information

The Role of Shared Intelligence in Building Trust

1. Enhanced Transparency and Accountability

Shared intelligence allows businesses to be more transparent with their customers. By openly sharing information about product origins, manufacturing processes, and supply chain practices, companies can demonstrate their commitment to ethical practices. For instance, a company that provides detailed information about the sustainability of its products can build trust with environmentally conscious consumers.

Furthermore, when businesses share their data and insights with third-party auditors or certification bodies, they add an extra layer of accountability. This external validation can reassure consumers that the company’s claims are genuine and not just marketing rhetoric.

2. Improved Product and Service Quality

When businesses collaborate and share intelligence, they can identify and address issues more effectively. For example, companies in the same industry can share information about common defects or customer complaints. This collective knowledge can lead to faster problem-solving and continuous improvement in product and service quality.

Additionally, shared intelligence enables businesses to stay ahead of emerging trends and customer preferences. By analyzing data from various sources, companies can better understand what their customers want and adapt their offerings accordingly. This proactive approach not only enhances customer satisfaction but also builds trust, as consumers feel that their needs and preferences are being prioritized.

3. Enhanced Security and Privacy Measures

In an era where data breaches and cyber threats are prevalent, consumer trust hinges significantly on how well a company protects its customers’ data. Shared intelligence plays a crucial role in enhancing security measures. By collaborating with other organizations, industry groups, and cybersecurity experts, businesses can stay informed about the latest threats and best practices.

For instance, shared intelligence can help companies identify and mitigate new types of cyber-attacks quickly. This collaborative approach to cybersecurity not only protects consumers but also demonstrates a company’s commitment to safeguarding their personal information, thereby fostering trust.

4. Strengthened Customer Relationships

Shared intelligence can also lead to more personalized and meaningful customer interactions. By leveraging data from various touchpoints, businesses can gain a comprehensive understanding of their customers’ preferences, behaviors, and pain points. This knowledge enables companies to tailor their communication, marketing strategies, and customer service efforts to meet individual needs more effectively.

When customers feel understood and valued, their trust in the brand deepens. They are more likely to remain loyal and advocate for the brand, further enhancing the company’s reputation and credibility.

5. Building Collaborative Ecosystems

Shared intelligence fosters collaboration not only within a company but also across entire ecosystems. When businesses, suppliers, and other stakeholders share insights and data, they can create more resilient and efficient supply chains. For instance, real-time data sharing can help companies anticipate and address disruptions, ensuring that products are delivered on time and meet quality standards.

Such collaborative ecosystems can also drive innovation. By pooling resources and expertise, businesses can develop new solutions and technologies that benefit consumers. This collective effort towards innovation demonstrates a company’s commitment to continuous improvement and customer satisfaction, reinforcing consumer trust.

Conclusion

In conclusion, shared intelligence is a powerful tool for building and maintaining consumer trust. By enhancing transparency, improving product quality, strengthening security measures, personalizing customer interactions, and fostering collaborative ecosystems, businesses can demonstrate their commitment to their customers’ needs and values. 

In an age where trust is a valuable commodity, leveraging shared intelligence can set companies apart and build lasting, loyal relationships with their consumers.

In the digital age, banks face the constant challenge of effectively communicating with their customers to prevent and manage fraud incidents. The results of a recent global consumer fraud survey highlight the need for proactive, personalized customer communication to detect and prevent fraud, as well as to efficiently resolve fraud cases.

However, meeting customer expectations in this area is not a simple task, as dissatisfaction with a bank’s response to fraud management can lead to customer churn.

Power of Proactive Communication

To demonstrate care for their customers’ financial well-being, banks must find ways to be proactive in their communication. One of the most effective ways to show this care is by actively working to detect, prevent, and notify customers about potential fraud incidents. 

While fraud detection measures strive to minimize false positives, there will always be cases that appear to be fraudulent but are not.

Consider a scenario where a customer makes an unusual purchase, such as expensive diamond earrings. Since this transaction deviates from the customer’s typical spending pattern and involves an unfamiliar merchant, it may trigger a fraud alert.

In such cases, proactive customer communication is essential. A quick, automated SMS message from the bank can allow the customer to verify the purchase and avoid any potential embarrassment at the checkout. 

When executed correctly, this communication reinforces a sense of protection for the customer. However, if the communication is incorrect or mishandled, it can result in a negative experience that requires significant resources to rectify and may damage the customer’s relationship with the bank.

Consumer Preferences for Communication Channels

Globally, customers prefer digital channels for communication, such as text messaging, emails, bank apps, and third-party messaging services, over traditional analog methods like phone calls. 

According to a survey, nearly 80% of customers worldwide prefer digital channels for payment verification. Text messaging is the most favored method, with 43% of customers preferring it, followed by 17% who prefer email.

However, it’s important to note that payment verification preferences vary across countries. In the United States, 64% of customers prefer text messages for verification, while only 2% prefer third-party messaging apps. 

In Brazil, the preferences are more diverse, with 28% preferring text messages, 30% favoring bank apps, and 12% opting for third-party messaging apps. 

Thailand stands out from the global group, as 41% of respondents in the country prefer phone calls for payment verification.

In regions like the European Union, customer verification methods are driven by regulatory requirements. Strong customer authentication dictates that many payments must be authenticated using two out of three methods:

• Inherence (biometrics)
• Possession (e.g., mobile phone)
• Knowledge (e.g., password)

This approach is being adopted globally with the introduction of 3-D Secure 2 for card payments.

With such diversity in communication preferences, banks face the challenge of effectively reaching out to customers through their preferred channels.

Addressing Gaps in Contact Information

Accurate customer contact information is vital for proactive customer communication. However, many banks struggle with outdated or inaccurate contact details. 

According to the survey, 22% of credit card customers worldwide report that their card provider does not have their correct mobile number. Similarly, 18% of debit card customers report inaccurate mobile numbers, and 28% report inaccurate home addresses.

The impact of inaccurate contact information goes beyond basic communication issues. Mobile numbers are increasingly linked to user security and anti-fraud controls.

In the UK, almost 20% of customers report that their bank does not have their correct mobile phone number. This becomes problematic if the bank relies on sending one-time passcodes via SMS for payment authentication. 

In many cases, the requirements of PSD2 Strong Customer Authentication prevent issuers from bypassing these checks. As a result, banks must find alternative methods to authenticate payments for customers with mismatched contact details, or the payment will fail.

Considering that there are over 50 million adults with a bank account in the UK, and 70% of them also have a credit card, it is estimated that more than 10 million individuals may have discrepancies between their actual mobile numbers and the numbers their card providers have on record for communication, authentication, and identity verification purposes.

The Cost of Negative Experiences

When banks struggle to contact and engage customers effectively, they face significant repercussions. The survey reveals that 83% of customers worldwide will either complain to their bank (56%) or switch banks (27%) if they are unsatisfied with the bank’s response to a fraud event.

According to the Bank Administration Institute (BAI), banks can spend up to $10 per contact in their call centers. Any increase in contact center volume leads to escalating costs for banks, not to mention the risk of losing customers to competitors. 

Proactive and personalized communications are crucial for maintaining stability and fostering growth.

Meeting Customer Expectations

To summarize, consumers prefer digital channels for communication, and banks must bridge the gap in contact information to provide proactive customer communication. Failure to do so can result in increased contact center costs, a decline in brand equity, and customer attrition.