With the growing digital transactions, financials, e-commerce and gaming sectors have emerged as prime target for cyber frauds.
The e-commerce sector faces significant risks due to the high volume of online transactions and involvement of sensitive customer data even while the online gaming industry has become an attractive target for cyber attacks due to its gaining popularity, said according to the recent report ‘The Anatomy of Fraud 2023’ by Bureau, an AI-architected platform that provides banks, fintech, gaming, gig economy and e-commerce companies with a complete range of risk, compliance, fraud prevention and detection, and onboarding solutions.
The most prevalent types of cyber fraud include takeover of account, identity, OTP, UPI, promo abuse and insurance frauds, among others.
The report revealed that account-related fraud added up to about 65 per cent of all fraud cases in the financial services sector, while in the e-commerce sector, it makes up to about 54 per cent.
Surprisingly, about 55 per cent of the reported digital payment frauds in India are UPI-related. Although the volume of UPI-related fraud attacks is substantial, the financial impact is relatively low, it said.
Ranjan R Reddy, Founder & CEO at Bureau, said to mitigate the risks associated with cyber fraud, it is essential for these sectors to prioritise and implement cybersecurity measures. These sectors can enhance their defences against cyber threats by investing in advanced security technologies, conducting regular audits and implementing strict data protection protocols.
It is crucial for businesses operating in these sectors to stay proactive and keep pace with evolving cybercriminal tactics to safeguard their customers’ information and maintain trust in their platforms, he added.
There is also a misconception that only large organisations are prone to cyber-attacks, but small and medium-sized enterprises find themselves caught in the crosshairs of scammers.
With limited resources to defend themselves, these businesses become easy targets for cybercriminals, who exploit their vulnerabilities with malicious intent, said Reddy.
Even globally, cyberattacks targeting small businesses and SMEs make up a staggering 43 per cent of all incidents, according to CyberPeace Foundation.
Bureau offers a comprehensive suite of solutions to safeguard the entire customer journey for SMEs by employing rigorous checks such as document and government validations, face similarity and liveness tests, and financial scrutiny.
Compliance management becomes a breeze with AML (Anti-Money Laundering) protocols and global watchlists, augmented by the power of location intelligence and document verification.