Identity fraud attempts surge
A study provided by Onfido has revealed the doubling of identity fraud attempts in February 2021. Fraudsters are taking advantage of the rise in remote working and reliance on digital-first services.
According to the Onfido Identity Fraud report, attempts of this kind of abuse increased by 41% over the previous year. That comes along with the five times year-on-year surge in the price of Bitcoin.
With the crypto market emerging as a regular hotbed for identity fraud, Onfido’s findings show the importance of vigilant identity verification solutions that detect and prevent attacks and scale with demand.
Further research, conducted by crypto intelligence firm CipherTrace, found that over half of the world’s cryptocurrency exchanges have weak or deficient customer identification and Know Your Customer (KYC) processes in place.
As crypto markets continue to rise in popularity among retail investors, robust KYC and anti-money laundering processes will be vital for trading and management platforms to protect their users effectively.
How to prevent identity fraud
On a daily basis, users can manage necessary measures to prevent identity fraud and theft.
- Use different passwords for every account to limit any damage that hackers can do.
- Use a unique email when opening accounts on each exchange and only use that email address for that specific exchange.
- Enable two-factor authentication. Without it, a hacker only needs your username and password to empty your balance.
- Don’t store your wallets and passwords in the same place.
- Be cautious while being active on social.
- Maintain backups and recovery phrases to ensure your account won’t be lost for good if something happens to your primary device.
- External hard drives, USB sticks, and encrypted backup files can be used to secure your recovery options, and programs like VeraCrypt can encrypt these sensitive files.
10 March 2021 - Uncategorized-