Ecommerce has reached new heights this year with a continuing uptick expected for the years to come. Online banking is following suit with millions taking their transactions into the rising paperless frontier. While this development gives consumers, financial institutions and digital storefronts an entirely new level of possibilities, it also leaves everyone involved at greater risk of fraud.
Combating the Issue
Since technology took off in the financial and retail realms, would-be wrongdoers have been looking for ways to capitalize on the growing sector. While identity verification and other security measures left quite a bit to be desired in the early days, advancements are now keeping pace with the potential dangers. Some of those methods are pretty ingenious in the eyes of consumers and debtors alike.
Secure Online Shopping
On the mobile online shopping front, consumers can now use their facial features to confirm their identities. Financial institutions issuing debit and credit cards keep account holders’ driver’s licenses on file. When they make a purchase using their phones or tablets, they simply snap a picture of their license and send it. Recipients use facial recognition and document authentication software to cross-reference the newly sent image with the one on file.
Foiling Tax Fraud
In light of the surging problem of tax fraud, the IRS is taking steps to help keep its taxpayers safe in their online filing efforts. These measures largely consist of using digital document coding and tracing the IP address of the device from which a return is received. More complex passwords, newly added security questions and PIN’s to be used for email verification also enter the mix.
Capitalizing with Confidence
Bank account takeover fraud jumped more than 30 percent last year alone, leading to billions of dollars of losses. While something as simple as regularly changing passwords can help thwart this problem, it’s not enough to truly put a dent in it. Banks are increasingly requiring unique PIN’s or codes sent to the account holder’s email or phone number on file for further identity confirmation. In many cases, these institutions will not allow transactions to be made from unknown devices, which is also form of IP address verification.
These are only a few of the steps being taken to help prevent identity theft. For online shoppers’ and bankers’, it’s always important to use secure networks and anti-virus tools to ramp up security. Look online here for more information on the matter.