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Better Customer Experience with Efficient Fraud Management

Better Customer Experience with Efficient Fraud Management

Businesses today are customer-centric and this fact is established with a popular adage “Customer is King,”. Generally, it is the king who usually protects his subjects from potential dangers; however, as the businesses today embrace rapid digitization, they are becoming potential targets of massive cyberattacks. So now, it is the “king” here needs who needs to be protected from the disastrous cyber frauds.

We have listed the top 5 cyber security and fraud management best practices that will keep your esteemed customers safe from cyber attacks and will reaffirm the faith they have placed in your business.

#1 Passwordless Authentication mechanisms: The fact that passwords, no matter how complex, are extremely vulnerable to cyberattacks cannot be denied. Just as the cyber criminal discovers that customer database is secured with a password, he/she gets ready with sophisticated attacks and more often than not, succeeds in breaking into the system secured with password. Therefore, systems or applications that store critical customer database should always be secured with passwordless authentication systems like 2FA/MFA or biometrics; the chances of a cybercriminal getting hold of OTP in 2FA/MFA or stealing, say your fingerprint on biometrics systems as compared to hacking a password are very grim. According to Gartner, passwordless authentication is gaining market traction and a top emerging security and risk management trend for 2019.

#2 Customer data back-up and review: Let’s give you an example here- customer ABC, a frequent customer with your business, make regular transactions with your business. And no denying, such customers and their account details are always under the attacker’s scanner. Now, a cyber attacker managed to access the customer data base and he doesn’t steal it, rather manipulates the data, tweaks the customer information and makes a massive financial transaction with your business, without the actual customer being aware that his account is breached and manipulated. The attack happens so subtly that you may not notice the fraud took place. So, a great way to manage fraud via data manipulation is to take regular back up of customer data and review it at regular intervals to identify unauthorized modifications.

#3 Educate customers: Yes! We know about the importance of employee security awareness training. Certainly, employees are made aware and trained to identity cyber threats, remain vigilant in securing the customer accounts. The customers too, should be filled in with how cyber attackers commit fraud by manipulating the customers. For instance, it is highly likely that a customer’s account got compromised because he received a mail or a pop up from your business, lurking him into checking on a new product or service that your business has or an imposter may pose as a personnel from your organization and trick the customer into giving his/her credit or debit card details. So, it is crucial to educate the customers about how cyber frauds take place and what they must do to secure themselves from the same.

#4 Mandate cybersecurity policies: Customers are always worried about the security of their data and rightly so. Of course, it is the organization’s responsibility to come up with a robust cyber security plan and ensure it is enforced within the organization, systematically. However, it is also vital to ensure these cyber security policies are mandatorily extended to customers as well. Also, given how impactful falling to cyber fraud for a customer is, when the customers are asked to align themselves with the organization’s cybersecurity policies, they will gladly adhere to it rather than questioning the policy. For instance, requesting the customer to use MFA or 2FA or connecting to a VPN should he transact with the business remotely. Mandating such cybersecurity policies is highly effective in mitigating cyber fraud.

#5 Encrypt customer data:  Let’s say a cyber attacker manages to hack into the system where all the customer records are placed; he now has access to all the records. But there is one security measure that will keep the data safe, even if it has landed in the hands of the attacker- Encryption. Ideally, the customer data such as name, e-mail address, phone number, date of birth, ID numbers, transaction history, etc. – all of this should be encrypted, ideally with AES256– an encryption standard established U.S. National Institute of Standards and Technology. Encryption makes the data unreadable and keeps it safe from being manipulated or used fraudulently.

The organization’s fame, goodwill, reputation and profits essentially come from one thing- a great Customer Experience. It becomes obligatory on every organization’s part to ensure their customer accounts and database are secure.

So, ensure you opt for the cyber security and fraud management best practices so that your customers are always benefited while transacting with your business and are not burdened with the impacts of cyber fraud.

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