In 2024, Adyen, a digital payment platform, published a survey that found that 33% percent of UK consumers fell prey to identity fraud in 2023.
Most identity fraud victims become victims because their details are stolen from online sources; however, other means can be utilized, such as phishing, social engineering, account takeover, etc. Fintech users need to understand this.
This article sensitizes Fintech users in the United Kingdom and explains how to avoid identity fraud.
With the current recession in the United Kingdom, there will be an influx of petty and internet crimes, including not-so-petty types of fraud, e.g., identity fraud. It is important to become aware of the different implications of identity fraud and how to avoid them.
What is Identity Fraud?
Identity fraud occurs when a person illegally obtains another person's details and uses such personal details to commit fraud or deception for personal gains, mostly financial gains.
Identity fraud has severe consequences for victims, including financial losses, damaged credit scores, and the hassle of restoring their identities.
To lower the risk of identity fraud, individuals should take proactive steps to protect their personal information. This includes shredding or safely disposing of sensitive documents, using strong passwords and enabling two-factor authentication for online accounts, being cautious about sharing personal information over the phone or email, and regularly monitoring credit reports for any unauthorized activity.
How To Avoid Identity Fraud As A Fintech User In The United Kingdom
1. Protect Personal Information
In this new digital age, this might seem like a task a tad bit too difficult. We are required to display our personal information a lot these days, from LinkedIn to Facebook to Instagram. However, there are still measures to be employed to safeguard one's private and personal information to avoid identity fraud.
Be mindful of the information you share online. While social media platforms encourage sharing personal details, you should limit the amount of sensitive information you disclose.
Avoid sharing your full birth date, address, phone number, or any financial details on social networks.
Adjust your privacy settings to ensure that only trusted friends and connections can view your posts and personal information.
You can also try to use aliases or nicknames, especially on platforms where you do not have to, like Reddit or X (formerly Twitter)
2. Strong Passwords
Having a strong password is a basic form of protection for your Fintech account. This way, hackers may not easily gain access to it.
When making a strong password, there are several factors to consider, including complexity and length; using a unique word or a unique combination of letters, numbers, and symbols also does some good. Avoid reusing passwords across different accounts.
Each account you create on whatever kind of platform should have a unique password to prevent a single breach from compromising multiple accounts.
A password manager can also be a useful tool to generate and keep complex passwords securely, reducing the risk of using passwords that can easily be figured out or guessed.
3. Be Vigilant About Phishing Emails
Ensure that all emails come from legitimate sources, don't click on suspicious links, and make sure to always verify that the link is safe before clicking.
Phishing emails always have some oddities; check for incorrect spellings, fake logos, or fake names. A quick Google search can help. Do not give your personal details out in any correspondence.
4. Report Suspicious Activities
Never hesitate to report any suspicious activity surrounding your account. Immediately contact your fintech provider's customer support through their official contact methods (phone, email, or in-app chat). You can also report suspicious activity to Action Fraud, the UK’s national fraud and cybercrime reporting centre. You can do this online at Action Fraud or by calling 0300 123 2040 or simply report to the local police.
5. Authentication Methods
Ensure that the Fintech platform you choose uses secure authentication methods, such as biometric verification, one-time passwords, liveness detection, ID data matching, etc. This way, you can be sure that the authentication methods can not be bypassed by every Tom, Dick, and Harry.
6. Always Update Your Software
The absence of key software updates can make your device vulnerable, making it susceptible to manipulation and harmful compromises. Update anti-virus and firewall software as often as you can.
7. Read Through Before Agreeing To Privacy Policies
This may not be a usual or popular practice among users of digital products, such as consumers of SaaS or FIntech activities. However, it is important to review the privacy policies presented. You may ignorantly agree to have your data sold or distributed to other parties.
Here is a guide to identity fraud protection in the US if you are interested in knowing more practical steps on how to protect yourself from identity fraud.
Bottom Line
With the rise in identity fraud cases, especially during economic downturns, to avoid identity fraud, fintech users in the United Kingdom must take proactive steps to protect their personal information.
By implementing the recommended measures, users can highly reduce the risk of a Fintech user falling victim to identity fraud and ensure their financial and personal information remains secure. These measures include reporting suspicious activities, using strong passwords, guardian personal details, etc.
One of the best ways to proactively prevent identity fraud in the UK is to receive real-time insights from Youverify’s advanced AI-powered fraud solution to stay one step ahead of criminals before the fraud is committed. You can now automate. Get a free demo.