Device fraud is a modern source of problems that are often experienced by both individuals and companies. Many losses are caused by device fraud because its forms are diverse and sometimes difficult to detect.
The number of cybercrimes continues to increase over time so that special and serious efforts are needed to handle it before it triggers massive legal fines.
Therefore, we as an individual or a company must know about what is device fraud? How does it seriously affect various industries? What kind of prevention act can we take? Let’s dig in deeper for better prevention!
What is Device Fraud?
Device fraud is a type of cybercrime that attacks device users, such as smartphones, computers, tablets, PCs, and the like. Cybercrime perpetrators will attack users by planting malware or viruses to take the information or data they need.
There are many motives or goals for cybercrime to carry out their actions, namely taking personal information such as PINs, passwords, personal accounts, etc., making illegal transactions using other people’s accounts, using personal data as collateral for online loans, and many more.
The types of device fraud actions are also very diverse, ranging from phishing, fake applications, jailbreaking, to trojans. Generally, the motives carried out are almost the same, namely on behalf of a large company with a high reputation so that potential victims feel more confident and carry out the requested instructions without asking many questions.
That is why it is very important for us, both personally and as a company, to understand the impact of this device fraud itself and to know the right way to overcome it.
Why Device Fraud is a Serious Threat for These Industries
Device fraud is very serious after the world has used technology for every industrial field that covers aspects of human life. For that, you should know why device fraud can be a very serious threat especially for some industries below:
1. Financial Services
Financial services are the highest target of cybercrime and are very vulnerable to device fraud. This can happen because the general motive of cybercrime is to steal as much money as possible to meet their needs.
Device fraud is a serious threat to financial services because it can have quite significant impacts, such as:
- Loss of customer trust in the security of the banking system so that they are not comfortable storing their funds or savings in the bank.
- Large losses to compensate customers affected by device fraud due to company negligence.
2. Healthcare
The healthcare industry is also an easy target for cybercrime to launch device fraud. There are many impacts that occur if this happens that are detrimental to the company and patients, namely:
- Financial losses in the healthcare industry that have an impact on service performance to decline because the funds needed are seized by criminals.
- Damage to hospital devices that are at high risk of malfunction, leading to misdiagnosis of the disease and inaccurate treatment that will endanger patients.
- Loss of important company information and patient personal data. The impact can be in the form of illegal sales of human organs to human trafficking.
3. Telecommunications
It can be said that the telecommunications industry is one of the most vulnerable and frequently experiences device fraud. Why is that? Because the telecommunications industry is almost connected to all access to the financial, health, education, and other industries.
Every personal data requested certainly requires a telephone number that can be contacted. So, with only 1 access, cybercrime perpetrators can hack many accesses. One example of device fraud in this field is SIM SWAP. Criminals apply for a new SIM or network diverter in the victim’s name to take over their account.
Not only that, criminals can also transfer a victim’s number to another network to intercept communications. It leads to swindle, human trafficking, and many more.
Also Read: Prevent SIM Card Cloning and Secure Your Telecom Network
4. Cross-Industry Risks
Device fraud can affect several problems to cross-industry risk because basically an industry cannot stand alone. For example, the health industry will need help from the technology equipment industry, food, and automotive to meet the needs of hospitals. If one industry experiences obstacles, of course other industries will be affected. As a result, performance is less than optimal and can even harm customers or clients.
What Happens If You Don’t Act?
Device fraud is not something new that has happened recently. However, if you do not immediately take preventive measures, the risks faced will certainly be greater.
For example, your company is engaged in the financial industry. Then, one day your company experiences device fraud so that customer personal data is spread and even traded on unofficial sites.
What will happen if you do not act? There are many risks that will be faced, both losses for the company and customers, such as:
- Loss of customer trust in their financial security. The result is that customers can sue for compensation or turn to other companies.
- Greater material losses so that the company must immediately cover them.
- Inefficiency and ineffectiveness of banking activities.
How Keypaz Helps You Stay Compliant and Secure
From the discussion above, that is the importance for companies to build an integrated and integrated security system to avoid greater losses and risks. Then, what is the right way to start?
You can start by creating protection for your company’s data using an integrated security system such as Keypaz. Keypaz helps prevent unauthorized devices from bypassing your security measures, keeping you in compliance with legal and regulatory requirements and saving your business from costly fines.
Keypaz also can detect several kinds of device fraud, such as account takeover, OTP spamming, promo abuse, and so forth. Not only that, you can quickly design automated workflows for different identity use cases including authentication, identity proofing and fraud detection. Therefore, not random people can’t log into company accounts.
Secure your data, protect your users, and simplify compliance — all in one platform. Get started with Keypaz now and turn your fraud defense into a growth advantage.