February 3, 2023
Digital Fraud

Digital fraud means some type of unlawful action that is carried out on the Internet. Hackers use different techniques and tools to gain remote access to a computer and the information it contains.

It is an idea as diffuse as it is wrong that cyberattacks and cases of digital fraud only affect large companies. Computer crimes are current events throughout the world and if you have a computer with an Internet connection, you are also exposed to possible digital fraud.

The good news is that there are different measures and technologies that allow you to avoid cases of digital fraud:

  1. Educate people : only knowing the most common types of fraud and the security protocols to act for its prevention, it is possible to prevent them
  2. Implement and use solutions developed thanks to artificial intelligence

How To Prevent Digital Fraud: Safety Education For People

As we have mentioned before, adequate training on the most common types of digital fraud  and the  basic rules for safe use of the  Internet are a key point to prevent unpleasant situations.

Types Of Internet Fraud

  • Phishing: it is a strategy whose objective is to obtain, with some stratagem, sensitive data such as the bank account number. This digital fraud strategy is based on using links that send to web pages similar to the original ones, where it is requested to insert personal data.
  • Smishing : similar to phishing, the main difference is that scammers use an SMS instead of an email. Similarly, financial information is requested through realistic resources such as a discount coupon that requires the introduction of personal data to activate.
  • Spamming – Like harmless spam, this type of spam displays advertisements with particularly attractive offers. Clicking on these ads may expose the user to malicious software.
  • Pharming : is a technique similar to phishing. The difference is that in pharming the traffic of a web page is manipulated to redirect users to fake web pages that install harmful software on computers, capable of stealing sensitive personal data such as passwords and bank accounts.
  • Hoaxes : this technique consists of creating eye-catching news or offers for users to click on and thus be infected by malware capable of stealing their data.

Rules For Safe Navigation

  • Use and periodically update an antivirus on your computer and on your smartphone
  • Check the URLs  and do not trust those that start with “http” instead of “https”
  • Use strong passwords : avoid using the same password for more than one service, mix numbers and uppercase and lowercase letters, and avoid easily guessable passwords like your date of birth or your pet’s name
  • You do not connect from public Wi-Fi network
  • Avoid answering emails that ask for personal information,  such as your bank account, your tax code. Do not trust either if they seem reliable emails and have logos that resemble those of entities and institutions that you know.
  • Do not open links or files if you are not sure of the source.
  • Remember that the only way to get money is to earn it, do not believe any mail from unknown relatives / people in the other part of the world who for some reason wants to pay you money ; do not answer and delete the mail.

How Artificial Intelligence Can Prevent Fraud In The Web Environment

Artificial Intelligence (AI) finds numerous applications today, among which a very valid opportunity is shown in the prevention of internet fraud.

Artificial Intelligence allows to identify recurrent patterns between data , through the combination of supervised and unsupervised machine learning .

Machine Learning And Data Analysis

Unsupervised learning allows finding abnormalities and correlations between factors and emerging variables.

By combining AI based on supervised machine learning , which uses historical data  , with unsupervised machine learning, companies get a clearer view of the risks of customer behaviors (predictive analytics).

The statistical data obtained is used to create software that generates ideal behavior patterns and detects those that do not respect that model.

However, AI is not only used to detect patterns in data (data analytics), but also plays an important role in data security .

Among the most applied strategies to guarantee data security is the activation of notifications to users when something strange is noticed. An example of a strategy of this type already applied for years is when, when connecting from a different device than usual, Google sends an alert message . Or still, if the system of some banks detects an anomalous behavior, such as an unusual or logical transaction, it notifies the client asking for their permission to carry out the operation (and of course, neither of these two cases are controlled by people).

Machine Learning Phases

In summary, artificial intelligence systems based on this model follow precise phases for the detection of possible digital fraud:

  • User behavior analysis
  • Data analysis with big data
  • Data validation
  • Classification of user behavior

Criticisms And Disadvantages Of Artificial Intelligence

It is clear that artificial intelligence and Machine Learning can add a lot of value and improve data security in companies. However, there are opinions that focus more on its disadvantages than its current usefulness.

Among the frequent criticisms, it is worth highlighting the one that compares the power of artificial intelligence with that of human intelligence, associating the second with a subordinate condition to the first. It is worth wondering how these technologies will be developed in the future, but the vision of the human being completely dominated by technology and deprived of his freedom of action, remains a rather apocalyptic and unreal vision.

Another issue concerns the economic development of society . Some economists (and not only them) wonder how to solve the current social trend that sees the need for a smaller human workforce, partly replaced by technological automation. What perhaps these critics do not take into account is that everything evolves and the world of work as well; jobs do not disappear but evolve. Cybersecurity job offers are constantly growing. So training and flexibility will allow you to adapt to job changes.

Also Read: Data Analytics: Trends For 2022

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