# Successfully turning the tide on a wave of fraud in 2017-Magazine
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-06-10
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Stay Ahead of Online Fraud in 2017
Meta Description: Learn about the latest threats and strategies to keep your online business safe from fraud in 2017. Stay ahead of the game and protect your customers'
URL: https://financedigest.com/successfully-turning-the-tide-on-a-wave-of-fraud-in-2017-magazinehtml

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**_Roberto Valerio,_** _CEO of leading fraud prevention software company_ [Risk Ident](https://riskident.com/en/) _, outlines the threats that businesses will face and the strategies that will keep them safe in 2017._

![Roberto Valerio](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/roberto-valerio-ceo-risk-ident-204x300-1736843776365-compressed.png)

Roberto Valerio

Online fraud made the headlines for a number of reasons in 2016. We saw a 17-year-old sentenced for stealing 21,000 customer account details [\[1\]](#_ftn1), nearly bringing down a UK national broadband provider, and the first pan-European ecommerce fraud operation, culminating in the arrest of 42 professional fraudsters. [\[2\]](#_ftn2)

But these are small victories in the context of the broader fraud landscape. Fraud is now one of Europe’s most prevalent crime, and consumers in the UK are now 20 times more likely to be robbed online than on the street. [\[3\]](#_ftn3) These trends are receiving huge amounts of press attention and customers are growing more anxious about sharing their personal data. In 2017 it is critical that [online businesses protect their reputations and revenue by using effective fraud](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For") prevention. Here are my [top trends](https://www.financedigest.com/road-rail-vehicles-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Road-Rail Vehicles Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") to look out for:

1. **Mobile-first shopping**

A recent Visa [report estimated](https://www.financedigest.com/tree-transplanters-market-estimated-to-discern-2x-expansion-through-2021-2031-fact-mr-report.html "Tree Transplanters Market Estimated to Discern 2X Expansion through 2021-2031: Fact.MR Report") that the number of Europeans regularly using a mobile device for payments tripled between 2015-2016 (54% vs 18%). [\[4\]](#_ftn4) More than ever, Europeans are making the most of in-person, online and in-app digital payments. However, so are fraudsters.Technologies such as device fingerprinting can detect which devices fraudsters are using and block transactions originating from these sources. Fraudsters will often try to counter this by using multiple portable devices, alongside other masking techniques. These techniques can sometimes avoid [fraud alerts](https://www.financedigest.com/finance-brokers-bank-on-red-flag-alert-to-help-beat-fraud.html "FINANCE BROKERS BANK ON RED FLAG ALERT TO HELP BEAT FRAUD") but fortunately a combination of device fingerprinting and machine learning can help merchants to access a much more complete map of the fraudsters activities and limit the damage they can cause.

2. **[Data breaches](https://www.financedigest.com/when-not-if-why-a-data-breach-response-plan-is-more-important-now-than-ever.html "When not if: why a data breach response plan is more important now than ever") will intensify**

In 2016, we saw one of the biggest [data breaches](https://www.financedigest.com/amazons-twitch-blames-configuration-error-for-data-breach.html "Amazon’s Twitch blames configuration error for data breach") in history. Yahoo revealed that sensitive data from more than 1 billion user accounts had been compromised, creating huge repercussions for the business and its reputation. In the UK, telecoms company TalkTalk was fined a record amount by the authorities for failing to apply “the most basic [cyber security](https://www.financedigest.com/the-new-cyber-agency-helping-tech-startups-stay-secure.html "The New Cyber Agency Helping Tech Startups Stay Secure") measures” for 150,000 customers. Looking to 2017, we can expect to see private and state-sponsored hacking continuing to target private user information, including names, telephone numbers, [email addresses](https://www.financedigest.com/how-to-create-a-professional-email-address.html "How to Create a Professional Email Address"), passwords,dates of birth and security question answers.Threats such as these are a matter of survival for online businesses and it is imperative that the [industry has the correct measures in place to identify attacks](https://www.financedigest.com/the-aftermath-of-covid-19-cybersecurity-crisis-have-the-attacks-benefitted-the-industry-more-than-they-hurt-it.html "The Aftermath of COVID-19 Cybersecurity Crisis: Have The Attacks Benefitted the Industry More Than They Hurt It?") early and minimise the damage caused.

3. **Social media weaknesses will come to the fore**

Today’s internet users have an average of 5 social media accounts, [\[5\]](#_ftn5) each containing different segments of their lives and crucial nuggets of personal information. Fraudsters have become highly adept at putting together these pieces of information to entire identities which can be easily misused or to break into existing online accounts. Fraudsters often use [advanced](https://www.financedigest.com/loan-automation-and-ai-streamlining-lending-and-borrowing-with-advanced-technology.html "Loan Automation and AI: Streamlining lending and borrowing with advanced technology") technologies to achieve this but sometimes little technological expertise is needed, as they can simply take advantage of internet users sharing too many details online.Social media users need better education on the use to which fraudsters can put seemingly harmless information.

4. **Identity theft will feed an account takeover rise**

An average of five social media accounts spreads our defences thinly but when we look at our wider online lives, the problem becomes far more significant. We have a lot user accounts, each containing our personal details and most secured by a memorable password. The temptation to re-use passwords or simplify them to make them easy to remember is understandable but fraudsters are aware of this weakness and are on-hand to exploit it. For example, shopping on the [black market](https://www.financedigest.com/carbon-black-market-projected-to-garner-significant-revenues-by-2018-2026.html "Carbon Black Market Projected to Garner Significant Revenues by 2018-2026") in the dark corners of the web, fraudsters can buy usernames and passwords and use them to try multiple other accounts online. In 2017, we can expect these strategies to evolve, and [customers with weaknesses in their online security may find themselves victim to hugely comprehensive attacks](https://www.financedigest.com/how-to-detect-and-defend-from-seo-attacks-and-customer-complaints.html "How to Detect and Defend from SEO Attacks and Customer Complaints").

5. **Bots will be a big challenge**

Smart software is highly effective at generating bots and wreaking general havoc whether that be through generating spam, vandalising information on Wikipedia or influencing opinions on social media. Fraudsters have devised a number of [ways to make use of bots](https://www.financedigest.com/five-ways-bad-bots-are-trying-to-crack-your-virtual-vaults-by-erez-hasson-strategist-application-security-at-imperva.html "Five Ways Bad Bots Are Trying To Crack Your Virtual Vaults"). For instance, in the ticketing industry, bots can order tickets en-masse before selling them on at a hugely [inflated price](https://www.financedigest.com/with-uk-food-price-inflation-at-46-year-high-lawmakers-launch-probe.html "With UK food price inflation at 46-year high, lawmakers launch probe"). In 2017, we can expect to see the number and effectiveness of bot attacks increase sharply.

6. **Machine learning and [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") will be even more important**

More and more [businesses are already capitalising on the scalable benefits](https://www.financedigest.com/top-benefits-of-invoice-discounting-for-small-businesses.html "Top Benefits of Invoice Discounting for Small Businesses") of machine learning technology. [Research into fraud prevention is revealing](https://www.financedigest.com/the-pandemics-impact-on-working-mothers-new-research-reveals-that-two-thirds-have-stopped-working-or-now-work-less.html "The Pandemic’s Impact on Working Mothers: New Research Reveals That Two-Thirds Have Stopped Working or Now Work Less") new uses to which the technology can be put and the difference it can make to online security. As the evolution of artificial intelligence continues, systems will improve steadily and security with it.

However, itis important to recognise that technology alone is insufficient. A human being with years of experience [fighting fraud](https://www.financedigest.com/how-speech-recognition-and-ai-are-fighting-fraud-in-financial-services.html "How speech recognition and AI are fighting fraud in financial services ") can never be replaced by a machine, but a combination of the two entities can produce extraordinarily accurate results. If managed properly by a knowledgeable fraud manager, modern machine learning technology, based on a [data science](https://www.financedigest.com/crowdsourcing-of-data-to-drive-the-life-science-market.html "Crowdsourcing of data to drive the Life Science Market") approach, is able to recognise changing patterns and irregularities in datasets. It learns from the data it processes to continually create new models and better, constantly evolving algorithms that help online businesses [stay ahead](https://www.financedigest.com/staying-ahead-in-the-digital-era-a-cfos-roadmap-to-future-proof-solutions.html "Staying Ahead in the Digital Era: a CFO’s Roadmap to Future-Proof Solutions") of the fraudsters.

Increasingly sophisticated fraudsters commit fraud with the help of machines; we must do the same to counter them. By constantly feeding artificial intelligence, [online businesses can grow](https://www.financedigest.com/how-to-grow-your-luxury-boutique-brand-online-james-sanders-london-diamonds.html "How to grow your luxury boutique brand online – James Sanders London Diamonds") a scalable, accurate and consistent defence and ensure their business’s security in 2017.

**About Roberto Valerio:**

Roberto Valerio is founder and CEO of RISK IDENT, a software development [company specialising in fraud prevention and credit risk evaluation based on machine](https://www.financedigest.com/single-lead-ecg-machines-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Single Lead ECG Machines Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") learning. He plays an active part within the fraud prevention community and he is a [member of the European Advisory Board](https://www.financedigest.com/passendo-powers-up-with-raft-of-new-board-members.html "Passendo powers up with raft of new board members") at the Merchant Risk Council. Beforehand he founded and worked within different [management roles for software](https://www.financedigest.com/calibration-management-software-market-to-witness-exponential-growth-by-2030-end-tmr-study.html "Calibration Management Software Market to Witness Exponential Growth by 2030 End | TMR Study") startups. He has a background in business administration.

[\[1\]](#_ftnref1) [http://www.bbc.co.uk/news/uk-37990246](http://www.bbc.co.uk/news/uk-37990246)

[\[2\]](#_ftnref2) [https://www.scmagazineuk.com/police-arrest-42-in-first-ever-pan-european-e-commerce-fraud-operation/article/569597/](https://www.scmagazineuk.com/police-arrest-42-in-first-ever-pan-european-e-commerce-fraud-operation/article/569597/)

[\[3\]](#_ftnref3) [http://www.telegraph.co.uk/news/2016/07/21/one-in-people-now-victims-of-cyber-crime/](http://www.telegraph.co.uk/news/2016/07/21/one-in-people-now-victims-of-cyber-crime/)

[\[4\]](#_ftnref4) [https://www.visaeurope.com/newsroom/news/mobile-payments-soar](https://www.visaeurope.com/newsroom/news/mobile-payments-soar)

[\[5\]](#_ftnref5) [http://www.adweek.com/digital/social-media-accounts/](http://www.adweek.com/digital/social-media-accounts/)

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“Original publication in Finance Digest Issue 1 https://www.financedigest.com/finance-digest-print-magazine/”
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