Fight against IoT Fraud and Identity Theft

You might have already heard of the term, which is pretty self-explanatory. IoT, or the Internet of Things, is a group of devices that describes the network of physical objects, aka things. The purpose behind this invention, similar to the Internet, is to connect multiple network-enabled devices together to exchange data with other systems. While this is not a new concept, IoT today brings various possibilities along with many security threats.

That’s why the connectivity factor opens new doors for cybercriminals, putting businesses and their data at risk. Thanks to technology, we now have special tools that efficiently help prevent cybercrime. On that note, keep on reading to learn more about the best security tips and fraud prevention measures.

Examples of IoT Devices

Connected cars, refrigerators, thermostats, and mobile phones – they’re all IoT devices. For instance, sensors, monitoring systems, or business software can also be a part of the Internet of Things. The connected objects are defined as a growing network that can exchange data using sensors. All of the devices talk to each other without any help from humans. For this reason, this level of connectivity is mesmerizing but, at the same time, poses a danger to security.

Unfortunately, each software and application present a risk since many web apps or APIs don’t protect information properly. Such info can be anything from customer personal data, or financial information, to healthcare data. As one thing can lead to another, data breach is no exception. If these types of information are stolen, criminals can proceed with further crimes, such as card fraud or identity theft.

Various Cybersecurity Risks

Some companies don’t prioritize security. In some cases, organizations leave IoT devices unsecured accidentally. As hackers gain easy access to the network, they steal personal information that can later be used to create a fake identity. Standard internet users are also in danger. Let’s take a smartwatch as an example. It holds valuable personal data, such as your name, card information, address, etc.

That said, hackers can break into your Wi-Fi, then access any IoT device. The vast quantities of data attract many cybercriminals, which have become smart and complex in their hacking techniques. Here are some examples of the most popular cybersecurity threats regarding IoT devices:

  • Poor encryption. Poorly encrypted information can be shared in public networks very easily. Once that’s done, anyone can use this data to commit crimes, such as selling the data on the dark web or using it for health insurance. In other words, one tiny stip can open a huge security gap and open a door for fraudsters to breach the whole device network.
  • DDoS attacks. IoT-based DDoS attack numbers are sky-high at the moment due to the increasing volume of devices. Typically, a Distribution Denial of Service attack is designed to flood servers with constant requests with the intent to overload them. Cybercriminals even use botnets to succeed with such attacks.
  • Data breaches. Cybercriminals launch attacks to steal data via IoT networks. As sensitive data is stored there, without cybersecurity measures, it can get leaked very easily. Once a hacker accesses a device and breaches the whole network, they can take over the whole system. Data breaches are no joke, as they are costly and can even result in closing down a business.

Transferring and Storing Data Safely

More customers and businesses use cloud-based data storage, which puts the cross-communication between IoT devices in danger. That is why potential threats of compromised data increase every time the information is transferred via the network. Without proper access controls or encryption, there is no safe data storage. Cybersecurity specialists argue that to solve this problem, businesses need to have a robust network security system.

Why Monitoring IoT Devices is Vital

Another security gap that increases the risks of identity theft and data breach is unmonitored IoT devices. If you leave any device improperly managed, trying to detect potential risks is impossible. In other words, the lack of visibility in IoT devices prevents businesses from controlling and responding to cybersecurity threats

A great example of this situation is the healthcare industry, where they use defibrillators. If criminals tamper with such devices, patients can become victims of serious life-threatening situations. Criminals have the power to deplete batteries and purposely administer incorrect shocks or pacing. To prevent such devastating scenarios, businesses must monitor their IoT devices in real-time.

How to Prevent Identity theft?

Foolproofing your IoT environment isn’t an easy task. Thanks to technology, humans don’t need to analyze data to protect or monitor it manually anymore. As identity theft is a huge part of IoT fraud, nowadays, many businesses prevent stolen or fake identities from committing their crimes by verifying them on their networks. How? Easy – using digital ID verification.

That means every client online needs to prove their identity by uploading a photo of their identity document and a selfie of their face. The data is then cross-checked using AI-based algorithms. It’s a user-friendly process that takes only a few minutes, but most importantly, it saves businesses from compromising their IoT networks, including further consequences, such as loss of revenue or reputation. Due to digital identity verification, fraudsters can’t get away with their fraud schemes and the use of tampered, inauthentic data.

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