Fraud Prevention

International Day of Education: Why Education in Fighting Fraud is So Important

January, 24, 20214 min Read

Today we celebrate the International Day of Education, and it’s a great opportunity to emphasize the importance of education in fighting fraud. 

“Education is the passport to the future, for tomorrow belongs to those who prepare for it today”

Malcolm X

January 24th is celebrated around the world as the International Day of Education, honoring the many ways education empowers people and contributes to development. Education enables us to understand the world around us. It provides us with a platform to gain knowledge, which enables us to pull down all the barriers to success. The same holds true for education in fighting fraud.

Fraud is a global phenomenon, which is fast spreading its tentacles across businesses and industries. It is essential that businesses gain information about the threats they face and the tools fraudsters use so they can better combat this growing threat with confidence.

To celebrate the International Day of Education, let’s list out a few areas where education can help businesses fight fraud better.

Risk levels: The phenomenal influx of digital debutants recently has opened up a rather large window of opportunities for fraudsters to attack—both businesses and consumers. It is in the interest of the businesses to educate themselves on the risks they face from these evolving threats. Assessing the risks they face in the type of industry they operate in and taking appropriate proactive measures will help them fortify their defenses.

Attack types: Businesses must defend against a mix of automation and human effort that fraudsters employ to launch complex attacks. Learning how to segregate automated, bot-driven attacks from those that are human-driven will help businesses use fraud solutions that prove effective in their fight against fraud.

Proactive Fraud defenses: Once the fraudsters exploit loopholes to attack, businesses rush to plug in those holes. However, in this whack-a-mole game, businesses are left cleaning up after the attack, which costs them effort and money. Rather than sticking to the legacy or traditional approaches to fighting fraud, businesses must learn to be proactive. This will enable them to learn about and efficiently fight the evolving fraud tactics.

Need for friction: To acquire and retain customers, the onboarding process and digital journeys must be as seamless as possible. However, businesses can’t lower their guard in the name of UX, which makes it easy for fraudsters to exploit these conveniences for their own benefit. Businesses must learn that they cannot completely eliminate friction as this is still needed to obstruct the path of the bad actors and keep them out. They need education on how they can use friction smartly to target the attackers without affecting the user experience for authentic users.

Boardroom agenda: A big chunk of the workforce working remotely poses a unique challenge for internal fraud teams. They need appropriate tools to ensure the safety of valuable assets while allowing seamless access to the workforce working from disparate locations and with an assortment of devices. The fraud teams must educate the board about the positive effects of investing in fraud defense solutions. These include a seamless user experience that helps create a positive brand image, attract new customers, and retain existing ones.

A safer internet: As children spend more time online—for classes, entertainment, and socializing—they are becoming more vulnerable to cyber threats. These include online bullying, sexual abuse, exposure to inappropriate content, social engineering, malware, ransomware, malicious links, and addiction, which can affect children for the rest of their lives. In addition to parental counsel, businesses too can play a massive role in making the digital world safer for children. From creating tools to launching educational and awareness campaigns, there's a lot of ways businesses can help make a safer internet for everyone.

Collaboration: No amount of education will suffice if every business tried to fight fraud on its own. Fraudsters share knowledge and information amongst themselves, which helps them improve their attack tactics and invent new ones. Only when businesses learn to collaborate and share intelligence amongst themselves, will they be able to effectively fight a common adversary.

Conclusion

Benjamin Franklin has aptly said,  "investment in knowledge pays the best interest.”On this International Day of Education, businesses will do well to invest in educating themselves on bankrupting the business model of fraud, which will help them protect their business and customer interests long-term.

To learn how Arkose Labs is helping global businesses bankrupt the business model of fraud, please book a demo now.