The popularity of digital wallets makes them an attractive target for malicious actors. Can we develop a secure e-wallet that never pops up on the list of compromised products? According to Nelson Mandela, “It always seems impossible until it’s done”. Let’s give it a try!
The game is won by those who know the rules and how to use those to their advantage. You know what your opponent is after and what they target: The system and the user. All you need is data and proactive measures to build a strong anti-fraud system.
Use mobile apps and server-side as valuable sources of data to identify patterns, detect anomalies, and cope with vulnerabilities. Refer to proactive measures, device attestation, authentication, integrating KYC & AML, and user education to build an effective anti-fraud system. Let’s have a quick look at each of these 7 steps.
Step #1 Proactive anti-fraud measures help to manage the uncontrollable – human factor, differentiating between “normal” and “abnormal” user behaviour. We can identify suspicious/malicious users and define “stop factors” via collecting data and calculating risk scores.
Step #2 User education: allows them to protect their assets better if they know about risks and are asked for additional authentication before a transaction can be completed.
Step #3 Authenticating and re-authenticating: Choosing the appropriate user identity verification method is paramount and will depend on the specific use case.
Step #4 Integrating KYC (Know Your Customer) and AML (Anti-Money Laundering) are crucial for identity verification and fraud prevention.
Step #5 Enabling remote device attestation helps to differentiate between a legitimate and a compromised one.
Step #6 Smart balancing between usability and security allows to win users’ hearts and protect their assets at the same time.
Step #7 Working with security researchers is a promising collaboration for mitigating vulnerabilities.
For more information on building an anti-fraud system, see our informative engineering post.
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