For any business operating in the 21st Century, data is its most valued asset. This makes it vulnerable to hacking by cyber attackers. Traditional defense software has proved insufficient in protecting company data from increasingly sophisticated cyber attacks. In response, Artificial Intelligence (AI) has come to the rescue. Although AI is not perfect, it has made the digital world better and safer through processes like identity monitoring and data security.
The latter describes the monitoring of information found in public records, websites and credit applications, for unusual activities that could signify identity theft.
Actually, there are several ways companies get targeted for online scams. These include malware, identity fraud and phishing. This article will talk about different types of online scams and how they work.
Here is a list that describes how companies get targeted for online scams:
Identity theft. This scam involves an individual using another person’s identification documents or several other identifiers for impersonification purposes. The impersonator then goes ahead to contact people or companies and ask for money or access to sensitive information.
Phishing/smishing. These are scams that make use of text messages to coax people into giving out sensitive personal information. Phishing refers to email scams, while smishing refers to text message scams. They could result in computer viruses, identity theft and other security threats. Typically, you will receive an email or text message claiming someone has stolen your credit card or there are issues with your bank account. The next thing you know, you are asked to enter some information to get your problems solved…and then chaos erupts.
Malware. Scammers can cheat companies out of information and money directly, and also indirectly by putting viruses on a company’s network. Take, for example, a phishing scam, which can serve multiple purposes at once. By getting companies to click on an email link, it could direct them to a site where they will feed in personal information. Similarly, the link can put viruses into the company’s IT systems. Sometimes, malware can be disguised as downloads in emails from people known to you.
Many companies, especially small companies, fail because of online scams. Once your identity is breached, there is a considerable chance you could go bankrupt.
As of 2019, 3.2 million fraud and identity theft reports were received. Of the 1.7 million fraud-related reports, 23% reported money loss. During that year, consumers lost more than $1.9 million—a $293 million increase from 2018.
In the fraud category, imposter scams came out at No. 1, with more than $667 million reported to be lost.
Companies can indeed fall for identity theft. Many scammers pretend to be someone else within the company and ask for personal information. Although this seems very easy to avoid, many companies fall for it. Imposters use increasingly sophisticated methods to appear legitimate, including using information that looks authentic.
There are several things companies can do to tackle this problem. These include education, using tools like identity monitoring services, investment in security and always keeping up-to-date with security and all the methods used by cyber thieves. We’ve put together some of the ways you can protect your business from online identity theft:
Opt for digital statements. Since scammers can target mail, bank statements, human resource files, and credit card bills, this could spell the end of your company. So, it may be a good idea to go paperless. Compared to paper, digital statements are much safer.
Security in your filing system. If your company needs to keep paper records, then ensure they are secure because they could be used to compromise your business if they fall into the wrong hands.
Follow the best digital security practices. Once you have transitioned from paper to digital, it is time you turned your attention to your digital assets. Secure your firewalls, install VPN’s, conduct malware scans, and Automatic Windows updates. Also, secure your wireless networks! This is not even an exhaustive list, but it’s a great start.
Staff education is so important and often neglected. Employees can create loopholes that cyber thieves can take advantage of. Staff may not be aware of the risks inherent in many of the tasks they do.
Educating them about online identity theft helps them take the necessary precautions. This way they may avoid, for example, filling out personal information in email links without first verifying their authenticity.
Cybercrime is one of the worst things that can happen to a company. When scammers lay hands on a company’s sensitive information, they could engage in criminal activities and enter into business deals in the company’s name.
This is potentially disastrous and, as noted above, could even lead the company to bankruptcy. However, with AI innovations such as identity monitoring, a company can protect against data breaches. Your company does not have to fall victim to what can be so easily prevented.
