Digital fraud is rapidly changing - Adam Bacia & Chris Briggs | Mitek

In today's rapidly evolving digital landscape, fraudsters are leveraging increasingly sophisticated attack vectors, making digital fraud detection and prevention more challenging than ever. As discussed by Chris Briggs, Chief Product Officer, and Adam Bacia, Senior Director of Product Marketing at Mitek, the fight against digital fraud now requires a multi-layered approach to combat the wide range of tools fraudsters employ.

The new age of fraud

Gone are the days when fraud was limited to simple phishing schemes or stolen passwords. Modern attack vectors are advanced, complex, and shifty.

Examples of new sophisticated fraud tactics include:

1. Deepfakes: Fraudsters use AI-generated media to create highly realistic but entirely fake identities. These deepfakes can bypass traditional verification processes, making detection nearly impossible without advanced tools and solutions.
2. Injection attacks: These sophisticated attacks manipulate the data flow between a camera and server, allowing fraudsters to insert fake or morphed images midstream.
3. Face morphing: Using tools often designed for social media, fraudsters alter their appearance to match stolen identities. This is increasingly accessible, with some fake ids and other fraudulent documents costing under $20 on dark web marketplaces.
4. Template attacks: With tools like Photoshop, fraudsters can subtly modify official documents, changing details like age or address, to create what appears to be legitimate identification, and duplicate fakes hundreds of times with minor changes.

How are fraudsters getting smarter?

Fraudsters are combining these techniques with information readily available on the dark web. Stolen personal data is paired with AI-generated images of non-existent people, enabling them to bypass basic database checks that identity providers rely on.

What can businesses do?

To combat these increasingly sophisticated threats, organizations must:

• Adopt a layered defense strategy: Use multiple verification methods, including AI-driven fraud detection tools, to address the range of attack vectors.
• Invest in advanced fraud detection tools: AI and machine learning tools can help detect anomalies in real time, such as mismatched facial data or morphed documents.
• Educate teams: Businesses need to stay informed about emerging fraud trends and ensure their teams are prepared to identify and respond to these threats.

Digital fraud is evolving rapidly, but businesses that stay proactive and implement robust fraud prevention strategies can significantly reduce their risk.

Learn more about Mitek's fraud fighting solution, Digital Fraud Defender

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