As per Mr. Bahaa Abdul Hadi, Cryptocurrency is in the news and mostly for the wrong reasons. The various instances of security issues have made it all the more imperative to bring in fraud prevention measures.
The problem in cryptocurrency is the anonymity involved. This has led to fraudsters trying to pull of frauds. The strength of cryptocurrency is blockchain, which is an immutable and shared ledger that allows transactions to be recorded. The benefit of blockchain is that transaction records cannot be manipulated reiterated Bahaa Abdul Hadi.
The system works on the assumption that the information that is initially inserted is accurate. If the initial information is not legitimate, then the subsequent transactions can contain false data. This is the loophole fraudsters are focusing on.
What fraudsters are doing?
- They use account takeover where they use stolen credentials to connect the account of a victim to a crypto account.
- The fraudsters now control both the crypto account and the source account.
- They operate scams where they convince people to transfer money to crypto accounts promising to deliver products. Once the payment is made, they escape with the funds.
- Any weaknesses in the crypto exchanges are attacked. This enablers fraudsters to siphon off money being transferred between crypto wallets.
- When they steal credentials to crypto accounts, they siphon funds from those accounts.
What is the solution?
Bahaa Abdul Hadi believes that biometric solutions would play an important role in preventing such fraud. Different layers of defense can be built to secure the system and prevent fraud.
- Identity verification tools would be used to authenticate the identity of individuals.
- Anomalous behavior like accounts used from Southeast Asia being used to open UK accounts can be identified. Also, fraudsters open many accounts at one time. Such behavior can be identified by intelligent systems.
- Network analysis would use ISP intelligence, IP intelligence, and observing traffic patterns. This would help in fraud prevention.
- Behavioral biometrics is an important fraud prevention measure. It allows to understand how users are operating devices. This can help in detecting fraud.
- Data of mobile phone numbers and mobile signals can be used for onboarding and authentication.
- Documentation verification can be done through video for authentication.
- Any organized attack can be identified by using link-analysis technology.
- Identity-graphing capabilities can bring together digital and non-digital data to understand their activity in different crypto ecosystems.
It is important that all these would be implemented without affecting customer convenience. Biometric data is being integrated in different sectors for identity. This will help in increasing customer trust.
Thank you for your interest in Bahaa Abdul Hadi blogs. For more information, please visit www.bahaaabdulhadi.com
As per Mr. Bahaa Abdul Hadi, Cryptocurrency is in the news and mostly for the wrong reasons. The various instances of security issues have made it all the more imperative to bring in fraud prevention measures.
The problem in cryptocurrency is the anonymity involved. This has led to fraudsters trying to pull of frauds. The strength of cryptocurrency is blockchain, which is an immutable and shared ledger that allows transactions to be recorded. The benefit of blockchain is that transaction records cannot be manipulated reiterated Bahaa Abdul Hadi.
The system works on the assumption that the information that is initially inserted is accurate. If the initial information is not legitimate, then the subsequent transactions can contain false data. This is the loophole fraudsters are focusing on.
What fraudsters are doing?
- They use account takeover where they use stolen credentials to connect the account of a victim to a crypto account.
- The fraudsters now control both the crypto account and the source account.
- They operate scams where they convince people to transfer money to crypto accounts promising to deliver products. Once the payment is made, they escape with the funds.
- Any weaknesses in the crypto exchanges are attacked. This enablers fraudsters to siphon off money being transferred between crypto wallets.
- When they steal credentials to crypto accounts, they siphon funds from those accounts.
What is the solution?
Bahaa Abdul Hadi believes that biometric solutions would play an important role in preventing such fraud. Different layers of defense can be built to secure the system and prevent fraud.
- Identity verification tools would be used to authenticate the identity of individuals.
- Anomalous behavior like accounts used from Southeast Asia being used to open UK accounts can be identified. Also, fraudsters open many accounts at one time. Such behavior can be identified by intelligent systems.
- Network analysis would use ISP intelligence, IP intelligence, and observing traffic patterns. This would help in fraud prevention.
- Behavioral biometrics is an important fraud prevention measure. It allows to understand how users are operating devices. This can help in detecting fraud.
- Data of mobile phone numbers and mobile signals can be used for onboarding and authentication.
- Documentation verification can be done through video for authentication.
- Any organized attack can be identified by using link-analysis technology.
- Identity-graphing capabilities can bring together digital and non-digital data to understand their activity in different crypto ecosystems.
It is important that all these would be implemented without affecting customer convenience. Biometric data is being integrated in different sectors for identity. This will help in increasing customer trust.
Thank you for your interest in Bahaa Abdul Hadi blogs. For more information, please visit www.bahaaabdulhadi.com
