Digital fraud in Latin America: four out of ten people are victims

Online connectivity in today’s digital age has led to great opportunities for businesses. But also to a significant increase in cybercrime and thus digital fraud victims.

A recent report by TransUnion indicates that 39% of citizens have been victims of online theft and deception. And in fact, by the close of the second half of 2023, these types of events increased by 45%.

This phenomenon, which affects a wide range of people throughout the region, raises significant concerns about online security and personal data protection.

The increasing use of the Internet and digital technology has had a significant impact on the way we live. However, this progress has also increased exposure to dangers. Such as phishing and other types of cyber fraud.

As more people and businesses enter the online world. It is critical to understand the dangers we face and take proactive steps to protect our information and privacy.

So, to navigate the digital world with greater security and awareness. In this article, we will explore in depth the impact of digital fraud in Latin America. Analyzing the causes, the methods used by criminals. And most importantly, strategies to protect your company.

The digital fraud landscape in Latin America : statistics and trends

The panorama of digital fraud in Latin America is increasingly worrying. With statistics and trends revealing an alarming growth in this type of crime. According to recent studies: approximately four out of every ten people in the region have been victims of digital fraud at some point.

This figure reflects a disturbing reality that affects both individuals and businesses. With significant repercussions on the economy and trust in the digital environment.

This phenomenon is exacerbated by the growth in the use of mobile devices to access the Internet. Due to the fact that 34% of fraud attempts are made through mobile browsers, according to the study “The true cost of fraud in Latin America”.

Read also about “Cyber Fraud: A Challenge for Enterprise Security”.

In addition, last year resulted in approximately 7 million cases of identity theft throughout the region. With countries such as Colombia, Brazil and Mexico leading the statistics.

Colombia registered the highest number of cases, with more than 2 million, followed by Brazil, with 1.7 million, and Mexico, with 1.4 million. Mexico stood out as the country with the highest number of online frauds in Latin America, with a 140% increase in the number of cases, reflecting the growing sophistication and frequency of cyber attacks in the region.

These figures underscore the urgency of addressing the problem of digital fraud and taking effective measures to protect both individuals and businesses throughout Latin America.

Online business vulnerabilities

Organizations are prime targets for digital fraud due to a number of vulnerabilities inherent in their online operation.

First, the increasing reliance on technology and the digitization of business processes has increased the scope and complexity of cyber threats.

Malware attacks, phishing, vulnerabilities in software and applications used by the company are just some of the dangers that can expose information systems and corporate networks.

In addition, the lack of awareness, cybersecurity training and implementation of anti-fraud tools in companies increases the likelihood of targeted attacks, which cybercriminals exploit to breach the security of companies.

And this situation is aggravated by the absence of effective identity verification and user authentication tools. Leaving organizations exposed to significant risks of digital fraud and theft of sensitive information.

In short, online business vulnerabilities are the result of a combination of factors:
Which include dependence on technology, lack of cybersecurity awareness, negligence in implementing security policies, and interconnectedness of systems. This situation is exacerbated by the absence of effective identity verification and user authentication tools.

Strategies to prevent digital fraud in Latin America

Cyber security education and awareness:

Cybersecurity education and awareness is critical for both employees and end users. This involves:

• Regular training: Provide regular training on safe online practices, threat identification, and fraud incident response.
• Clear cybersecurity policies: Establish clear cybersecurity policies and incident response procedures to ensure effective management of security breaches.

Identity verification and user authentication tools:

One of the most effective strategies to prevent digital fraud is the implementation of advanced identity verification and user authentication tools. Such as Verifik , a platform where you can find a complete identity verification toolkit.

Toolsideal for any type of company, because with these technologies, it is possible to prevent digital fraud, save time, costs and optimize internal processes.

Verifik’s Identity Verification Technologies

1. Facial recognition: Our facial recognition solution uses advanced algorithms to verify the identity of users by analyzing unique facial features. This provides an additional level of security by ensuring that only authorized individuals can access online platforms.

2. ID document validation: With our document validation technology, we can verify the authenticity of ID documents such as passports, driver’s licenses, ID cards, ID cards and more. All in real time. This helps prevent fraud by detecting forged or altered documents.

3. Password-less logins: Our password-less login solution eliminates the need for passwords. This by allowing users to securely access their accounts using alternative authentication methods such as text messaging, WhatsApp and even facial recognition. This reduces the risk of password theft and phishing.

4. Document scanning: With our document scanning technology, users can securely upload and scan documents from their mobile devices or computers. This facilitates a faster, easier and more secure identity verification process.

Did you already know about our identity verification toolkit? Learn more about Verifik here or contact us to give you the best solution for your company, creating secure digital ecosystems is possible with Verifik.co !