By this time, we are all aware of how pieces of content can be easily discovered across social media platforms or other digital platforms such as chat apps. And that is just one side of the coin. Not to mention, the infinite number of fraudulent credit card or debit card calls we receive from time to time and even those phoney emails, which usually claim that either we have won a lottery or have an instant loan waiting for us. And all it takes is a click and our card details to avail of these once-in-a-lifetime opportunities. However, these are not the only kind of digital fraud which currently exists. With the evolution of the digital industry fraud too, has evolved and there is more than that meets the eyes. In fact, the fraud detection and prevention (FDP) market was estimated to be worth $19.5 billion in 2017 and is expected to exceed $63 billion by 2023, as per market research firm Statista, latest finding. Other findings show that in FY21, a total of over 16,000 copyrights were registered in India.
As of October 2018, around 23% of Internet users have been a victim of online identity theft. These criminal activities are in the form of credit card fraud, tax-related issues, or bank fraud, among others. While wire transfers still account for the highest value of fraud loss, technology-enabled frauds such as card-not-present (CNP) credit card fraud are increasingly common. Ad fraud is yet another kind. In 2020, advertising fraud inflicted economic losses worth $35 billion worldwide.
And that’s just the beginning. In the last few years fraud too has evolved – from identity theft to refund to privacy to intellectual property theft besides refund fraud, among others. Needless to say, the list goes on. At this year’s DigiFraud Insiders Summit, we try to navigate through the world of fraud and copyright infringement.
The Summit saw names such as Gulshan Rai, former national cyber coordinator, GoI, and senior advisor, Dua Consulting and Dua Associates, Anil Lale, general counsel, Viacom18, Ramachandra Kulkarni, managing director, Technology Risk, Goldman Sachs, Harish Goel, director IT Security and Compliance, Publicis Groupe, Ashish Pandey, digital and tech head Indian Sub Continent, CIO, CDTO, GSK Consumer Healthcare, Omkar Shirhatti, co-founder and CEO, Karza Technologies, among others.
Follow all the LIVE updates of the Summit here:
“Organisations need to define their problem statement correctly. You need to be clear with your objectives and then build targetted solutions. This is one major shift that has to happen,” Omkar Shirhatti, co-founder and CEO, Karza Technologies, added.
“In 2021, internet banking and card transactions related frauds increased around 30% when compared to 2020. Analytics is the need of the hour in today’s scenario where digital transformation is happening at such a large scale,” Ashok K Agarwal, executive vice president, RiskPro, highlighted.
“Banks and financial institutions now are taking a more proactive route on how to leverage artificial intelligence (AI)/ machine learning (ML) which can help them in understanding the pattern of fraudsters,” Omkar Shirhatti, co-founder and CEO, Karza Technologies, stated.
“Banks have adopted multifold strategies such as application developed by banks that are capable to detects threats, creating awareness among customers and transaction monitoring,” Ganesan Ramani, vice president, global head, Digital GRC, Mashreq Bank, said.
“The awareness on data and privacy has started spreading. However, there is still a long way to go,” Ashish Pandey, digital and tech head Indian Sub Continent, CIO, CDTO, GSK Consumer Healthcare, said at the DigiFraud Insiders Summit 2022.
“Open-source intelligence allows you to know and understand what are the frauds happening outside your ecosystem, take action and stop them before they become a mess for you and your internal security,” Dhiraj Gupta, co-founder and CTO, mFilterIt, stated.
“The Ukraine war has opened up the eyes for a lot of people to understand the depth of information leakage which is outside,” Dhiraj Gupta, co-founder and CTO, mFilterIt, said.
“Fraud is a violation of the code of conduct. A report suggests that nearly 50% of the frauds happen because of lack of internal control or because the controls are being overridden,” Harsh Chaudhary, head, Fraud Risk Management (FRM), Reliance Global Corporate Security, said.
“Targetting on mobile devices is at the peak, therefore, ad fraud are more on mobile devices,” Harish Goel, director IT Security and Compliance, Publicis Groupe, said.
“One of the suggestions that we give to the banking sector is that you cannot outsource or delegate your security. Similarly, in the ad industry, the model must not be around the number of views, impressions, and clicks. The ad industry will have to move away from behavioural parameters trying to define commercial aspects of ads,” Hiren Shah, president and mentor, Net-Square Solutions, said.
“Since January 2020, there were 500 domains registered everyday till December, 2020. Majority of those were registered for fraud. The way attacks are happening has increased. Because of budget constraints, tools may not be available. Being vigilant and taking proactive actions on part of organisations is key,” Pawan Chawla, chief information and security officer and DPO, Future Generali India Life Insurance, said.
“For fact checking, we connect with ministries and departments via respective PIB officers and use different tools like Google Reverse Image Search, Invid, among others,” Narayanan Balasubramanian, director-general (North-East Zone), Press Information Bureau and Regional Outreach Bureau, Ministry of Information and Broadcasting, said.
“What we need is a much more data-oriented and analytical approach, where that data could be collected across the organisation at various touchpoints. Today, attacks happen at multiple layers, multi-dimensional which makes it further hard to predict,” Pradeep Rangi, chief risk officer, Airtel Payments Bank, said.
“We have to catch up with the scamsters. The profile of vulnerable consumers has changed, and basically everyone is vulnerable. Everybody should expect that their data is being compromised at this particular time,” Victor Apps, director, Financial Crime Risk Specialist, Standard Chartered Bank (HK) Limited, said.
“Consumers are becoming more ad agnostic. Its important to be a part of consumers lives and solve something for them. In terms of the impact of a cookieless world – the first impact is how do I get the right audience list, second impact will be on the frequency because you are not tracking the consumer across websites, and the third impact would be on performance marketing. It will be important to invest in tools to consolidate all information,” Avi Kumar, chief marketing officer, Join Ventures, stated at the DigiFraud Insiders Summit, 2022, stated.
“What is important for businesses is to create value for consumers. If the consumer sees value in the information he/she is providing to the brand, then he/she will readily share the information,” Avi Kumar, chief marketing officer, Join Ventures, stated at the DigiFraud Insiders Summit, 2022.
“As the digital landscape evolves, frauds will evolve too. Recently, UPI frauds have been on a rise, especially during the Covid period when more people moved to online platforms. With small tips and education around protection, people can navigate through the digital world,” Siddharth Dabhade, managing director, India, SAARC and China, MIQ, said.
“For small organisations, the key challenge in implementing security measures is the cost/investment factor,” Mithilesh Singh, global head, Technology Audit and Data Analytics, S&P Global, said.
“The transition to WFH happened very quickly and it didn’t give the time to people to secure their devices completely. This allowed fraudsters to insert themselves into various processes,” Muzammil Patel, global head, Strategy and Corporate Finance, ACIES, said.
“It is important to look at biometric or cross channel authentication, QR codes, tap and aunthenticate. Going forward, the ecosystem has to build on a newer system of authentication leaving OTP behind,” Shilpi Mishra, president and head, Process, Controls and Risk Containment, Kotak Mahindra Bank, added.
“As customers, look for authenticity in the messages sent to you, don't blindly click on anything that you receive, always reverify before taking an action,” Ashton D'Cruz, director, CAO, CGO, CISO and head – CCandS Governance, NatWest Markets, stated as he spoke about rising digital fraud.
“More than 80% of the people have lost money by just clicking a phishing mail or downloading malware. Therefore, awareness becomes important,” Babitha B.P, chief information security officer, CSB Bank, stated.
“We are seeing four type of threats- nation state, organised crime, insider threat and activists,” Ramachandra Kulkarni, managing director, Technology Risk, Goldman Sachs, stated.
“In terms of digital fraud, there are three key categories- phishing, bot activity and brand infringement. Phishing continues to be the most popular way of committing fraud,” Ramachandra Kulkarni, managing director, Technology Risk, Goldman Sachs, said.
“There are two aspects in copyright – private and public. With NFT, for the first time you can control, what can be public and what can be private,” Chirag Tanna, director, patent and trademarks, INK IDEE, stated.
“One has to approach the court for any kind of infringement and cases should be solved within fixed timelines,” Jamshed Mistry, counsel, Supreme Court of India and Bombay High Court and founder, International Legal Alliance, said.
“There are four pillars or principles in the enforcement of intellectual property –market, norms, architecture and law,” Rafael Pereira, managing partner, TINNUTS, said.
“If I have a well known trademark, someone can register it as a domain name. This is called domain abuse, which also has certain subsets such as cybersquatting,” Vaibhav Dalvi, assistant vice president, Legal, Welspun, stated.
“There’s a black side to the whole NFT market that has opened up. People have been taking content created by artists and just putting it on NFT and selling it on open market,” Anil Lale, general counsel, Viacom18, said at the DigiFraud Insiders Summit, 2022.
“In order to ensure user experience and protection, we can use automation and API, correlate various data points from different sources,” Surender Kumar, chief technology officer, iMoney Pay, said at the DigiFraud Insiders Summit, 2022.
“With the fraudulent transactions happening across, we got another motivation to go deeper into the technologies and identifying the use cases. User awareness needs to be incorporated. Technology, implementation and governance must go hand in hand to safeguard the users against fraud,” Alok Nikhil Jha, chief operating officer, IIIT D Innovation and Incubation center, IIIT Delhi, stated.
“As businesses, we need to keep a fine balance between what is necessary and what is good to have. We need to ensure that customer journey is seamless but at the same time it is not fraudulent,” Mitul Mehta, chief marketing officer, Datamatics, stated.
“Almost 50% of all digital payments are through UPI. One key component of this is safety and security. Therefore, customer awareness becomes a critical factor as more people take to digital payments,” Amitabh Tewary, chief innovation officer, Razorpay, said at the DigiFraud Insiders Summit, 2022.
“We cannot stop innovation in technology as it has brought so many benefits to us. We need to adopt techniques and processes to develop security in order to prevent fraud,” Gulshan Rai, former national cyber coordinator, GoI, and senior advisor, Dua Consulting and Dua Associates, stated.
“We are all eager to adopt innovation in technology. At the same time, the adverse impact of this innovation is happening, which is fraud,” Gulshan Rai, former national cyber coordinator, GoI, and senior advisor, Dua Consulting and Dua Associates, said.