Alongside the online banking alternatives, online fraudsters are pushing into cyberspace with clever techniques. While the latter is not about to abandon the familiar telephone scams, the theft of personal data and identities is becoming a pressing problem for society, with larger scale and more severe consequences. In 2021 alone, Lithuanian hackers stole and then made public the customer data of well-known companies such as CityBee, Filmai.in, and Domenai.lt.
Cyber-attacks are set to grow
Domantas Čiuldė, the CEO of the Lithuanian cyber security startup iDenfy, says he doubts that hackers will soon reduce their nefarious intentions. According to the specialist, attacks will increase, and it is recommended that everyone prepares for them, especially the banking industry and the rapidly growing Fintech sector.
When asked what to do to avoid scammers’ traps, Čiuldė says that it’s essential to be critical of any information on the internet, not to respond to requests for bank transfers, read suspicious emails cautiously, and be vigilant during unexpected calls.
Scammers often ask for just a few digits of your PIN, but this is just another way to make it easier to get your personal data. The latter is also active when shopping online, so it is important to check that the service provider is fully licensed and that the website providing the service is genuine.
Identity verification solves the issue
One of the ways to help thwart fraudsters and prevent money laundering, according to Čiuldė, is through remote identity verification. This technique aims to detect synthetic, fake identities used by criminals to gain access to someone else’s online banking services.
The remote identity service avoids the need to visit the bank, as users only need to press a few buttons to take a picture of their passport or ID card and take a selfie. An automated system quickly scans the customer’s data and compares it with the information on the ID. If everything matches, the user gets the green light to connect to the bank and continue using its services.
„Cyber-criminals attempt to maintain anonymity, trying to hide their faces by wearing masks during the ID verification. With the help of artificial intelligence, the system recognizes all forms of forgery, so fraudsters can no longer continue their exploits, while standard users can enjoy a quick procedure at home, avoiding the traditional banking setting,“ explains Čiuldė.
Why banks should watch out
Consumers who spend a lot of time online are placing higher demands on businesses to ensure data security. Not surprisingly, the financial sector is in focus. More and more players in this sector are looking for additional, innovative technological solutions that can process large amounts of information faster and more securely and protect consumers’ data from cyber-attacks.
In order to reduce the risk of identity theft and to prevent fraudsters from using card data without authorization, Alternative Payments has joined the Lithuanian iDenfy remote identity verification system. The company’s customers can choose convenient, local payment methods as an alternative to credit cards when paying for services in the digital space.
Mindaugas Rizgelis, head of Alternative Payments, doesn’t view the transfer to remote authentication as a necessary principle of the law but more as an effective way for banks to meet the growing needs of consumers for secure and easy access to the services they want. „Remote authentication is an innovative, convenient way to ensure that the consumer is using their data and has transparent intentions. This way, banks optimize internal processes. They save time and costs by opting for a secure, automated security system,“ adds Razgelis.
iDenfy, a platform of identity verification services and fraud prevention tools, ensures AML and KYC compliance for every company — from large-scale businesses to small organizations. The rapidly growing business was named the best „Fintech Startup“ in 2020. The company also received recognition for winning a Baltic Assembly Prize for innovation in 2021.