The ride-hailing industry today can be said to be like two sides of a coin. On the one hand, it is very easy for consumers to use online vehicle services with affordable prices and many attractive promotions. However, on the other hand, ride-hailing apps have become the main target of fraud that has been widely carried out by irresponsible individuals.
Where there is new technological progress, that is where fraud will continue to occur. That is why every developer needs to use an integrated security system that can prevent fraud early.
Common Fraud & Attack Types in Ride Hailing Industry
The growth of the ride-hailing industry is also accompanied by the risk of fraud. Here are the list of common fraud and attack types in the ride hailing industry that you must be aware of:
Form Spam
Referral system could profit you or even kill you. Why? On the other side, you can gain more users through a referral system because everyone will get the benefit of it. However, fraudsters also can maximize this opportunity to benefit themself.
For example, fraudsters used automated scripts and fake accounts (using fake numbers) to create thousands of rider accounts. These accounts exploited referral bonuses meant to attract genuine users.
Location Spoofing
If you ever wait your order for too long, your driver might use location spoofing in their account. Simply, the purpose of location spoofing is to charge customers higher than usual.
Basically, the application system will give you a nearby driver based on your location. But, a cheated driver will set their location to the signal that is searching for a customer. So, even though they are in point A, they can get your order from point D, for example. Drivers don’t have to wait in the queue, but they can get orders with higher prices and customers have to wait longer.
For example, back then in 2019, Uber faced a major payment fraud scheme in India. Drivers collaborated with fraudsters to fake ride completions. By using location spoofing apps, drivers manipulated the system to show completed trips without actually providing the service.
Payment Fraud
Payment fraud in ride-hailing apps occurs when fraudulent activities are used to manipulate payments, leading to financial losses for riders, drivers, or the platform itself. Fraudsters use stolen credit cards or fake accounts to book rides and later dispute the charges.
Account Takeover
Simply, account takeover using a concept like ride hailing scam did. As a consumer, if you don’t use a strong password, it is very risky for cybercriminals to hack your personal data and get into your ride-hailing apps.
You will face several losses, such as personal data selling on the dark web, extortion of money from ride-hailing apps accounts, and so forth.
That’s why as a developer, you have to protect and facilitate your ride-hailing apps with a strong and integrated security system. Beside preventing several losses, a strong security system will gain trust from your users.
Keypaz: The Best Solution for Preventing Fraud in Ride Hailing Industry
To keep up with the industry’s growth and the increase of fraud, a prevention step must be taken from the strong and integrated security system itself. Developers and businesses must work together to know exactly which tools and techniques are being used to commit fraud.
To answer this problem, you have to know other competitors’ systems to prevent fraud. Most of biggest company, especially in Indonesia, using Keypaz as their best solution for preventing fraud in ride hailing industry.
Keypaz believes that device intelligence and biometric behavioral analysis are the major security systems to minimize the risk of ride hailing fraud. How does it work?
Keypaz have several main features that allow ride hailing businesses to detect fraud earlier. This system can apply geolocation spoofing and VPN detection to prevent fraudsters masking their location. Not only that, Keypaz also equipped ride hailing services with biometric manipulation features so fraudsters cannot change account biometric data to hack accounts.
The impact for Keypaz implementation on your ride hailing apps is that companies can build trust and preserve brand reputation.
Key Takeaways
- As ride-hailing technology advances, fraudsters continuously exploit vulnerabilities, making fraud prevention essential.
- Common Fraud Types:
- Form Spam – Fraudsters abuse referral systems using automated scripts and fake accounts to claim bonuses.
- Location Spoofing – Drivers manipulate GPS signals to get higher fares and avoid queues, leading to longer wait times for customers.
- Payment Fraud – Stolen credit cards and fake accounts are used to book rides and later dispute charges.
- Account Takeover (ATO) – Weak passwords make it easy for cybercriminals to hack accounts, steal personal data, and commit financial fraud.
- Developers must implement strong security measures, such as AI-driven fraud detection, strict authentication, and integrated anti-fraud systems, to protect users and the platform.
- A robust security system not only prevents losses but also builds user trust, ensuring sustainable business growth.
After knowing all the risk and command fraud that can attack ride hailing business, it’s a sign for you to try and implement Keypaz as the number one security system solution for your ride hailing apps!