Callsign says outdated verification and authentication technologies such as one time passwords (OTPs) are to blame not peopleSINGAPORE - Media OutReach - 5 May 2022 - Callsign, the digital trust pioneer, has launched 'Online scams, the psychology of fraud, and how technology can prevent it' eBook. Authored by Richard Shotton and Callsign, the eBook is free to download and contains valuable insight and information about how online fraud works, and the steps needed to reverse its exponential growth.
Estimated to cost the global economy US$5 trillion annually, online scams are once again surging globally. Recent high profile bank frauds in the Asia Pacific region reveal the extent criminals will go to steal, trick, or hack victims' sensitive data to realize illegal financial gain.
Commenting, Namrata Jolly, General Manager for Asia Pacific, Callsign, said:
"A common denominator in the failure to combat online fraud is the use of outdated technologies to verify and authenticate customers even though these have proven to be vulnerable to compromise. For example, criminals have known how to circumvent one time passwords delivered by SMS for years, yet the technology is still relied upon by the majority in the banking sector."
The eBook outlines that whilst education of consumers does help prevent them falling victim to fraud, consumers are consumers whereas fraudsters are professional criminals, who use sophisticated methods to trick humans and circumvent technology.
Whilst text messaging is a ubiquitous communication channel, that means it is also available to fraudsters. SMS OTPs rely on Signaling System 7 (SS7- a technology used by telecom operators since 1975) is known to be vulnerable to cyberattackers.
Callsign's own survey into consumers attitudes to technology and scams revealed that only 8% of consumers trust SMS OTPs to communicate with their bank.
Callsign's technology enables organizations to dispense with SMS one-time passwords and other dated authentication technologies, helping to prevent fraud, including account takeovers, due to compromised devices, stolen credentials, SIM swapping and other threats.
"There is a common perception that humans are to blame for online fraud. This is not the case. The root cause for online fraud is technology, because many online service providers have simply not developed authentication methods to meet the needs of the digital age," added Jolly.
To download the free eBook, click here. Registration is not required.
The issuer is solely responsible for the content of this announcement.