UCs Should Start Preparing for Digital ID Adoption: Fraud Expert
Apple last month announced that digital driver’s licenses and state ID cards will soon be available through Apple Wallet for consumers in eight states: Arizona, Georgia, Connecticut, Iowa, Kentucky, Maryland, Oklahoma, and Utah. . The inevitable and widespread adoption of digital IDs nationwide is looming on the horizon, but with this added convenience will likely come with new opportunities for fraud, according to a new e-book from the security and protection company. Sontiq identity, “Protecting What Matters Most”.
In June of this year, Utah Community Credit Union ($ 2.4 billion, Provo) announced that it had been selected by the Utah Driver License division and GET Group North America, which provides the licensing technology platform. lead mobile (mDL) GET Mobile Administrator, as Utah’s first financial institution to test mDL as a legal form of identification for all banking transactions. Sontiq SVP, Data Breach Solutions Al Pascual said that while early digital ID users such as the Utah Community will have security on their side due to their collaboration with a digital ID-focused technology provider, it is worried about credit unions that might start accepting digital IDs before the necessary technology has been implemented.
“In order to properly and efficiently validate digital driver’s licenses, businesses, including credit unions, will need to adopt the additional technology themselves,” Pascual said in an interview with CU time. “It means more costs and it also takes time. I think this could lead some institutions to lower the bar for digital driver’s licenses, which means they might look to find ways to validate them that are comparable to traditional driver’s licenses until they are in. able to leverage the technology to take advantage of the additional verification benefits that come with it.
“Lowering the bar” might sound like manually entering a member’s mDL information, as one would with a physical driver’s license, and perhaps looking for a distinguishing feature that exists on a real mDL, a he declared. “Inevitably, these are the kinds of things that criminals can take advantage of. Once you have something in the digital realm, data and images are very easy to manipulate, tamper with, forge, ”he warned.
Additionally, the eventual widespread adoption of digital IDs will be accompanied by the creation of centralized databases containing digital ID data, making them attractive targets of breach, according to Pascual and the eBook.
Some countries were the first to adopt digital IDs with disastrous results. In 2017, Estonia’s digital ID program suffered a setback when a major breach affected nearly one million IDs, and in 2018, a security breach compromised personal data belonging to more than ‘One billion people in India who were enrolled in the Aadhaar Country Biometric Identification Program. The lesson to be learned from these large-scale incidents is that the overlay of various forms of authentication will continue to be critical, Pascual said.
“It’s a story as old as time in the space of identity: one form of identity verification becomes one form of failure,” he said.
To get ahead of these threats, Pascual recommended that credit unions start contacting their main processor and other technology vendors and ask them how they plan to support digital IDs. They may also begin to research companies that plan to partner with states on digital ID efforts, as they will provide much of the underlying technology, he added.
“By doing this, you are also signaling your interest to companies that provide the technology that you want to be able to adapt it,” he said. “And the more they hear about it, the faster they’ll want to get involved and support it.
No more scams targeting children
Financial accounts designed for children are increasingly common as today’s youth are more likely to give and receive money digitally than in cash. This means that fraudsters have a ripe new category of targets to exploit.
Sontiq’s e-book warned of an increase in “mule colt” scams, or mule scams targeting children, in which scammers solicit young account holders to help move stolen funds under false pretenses, promising to the child that they can keep a small portion of the stolen funds and ultimately let them (or more likely, their parents) deal with the fallout from the illicit transfer.
Pascual said these scammers typically connect with children online through games or social media apps, using a fake identity to establish a relationship and ultimately forcing them to become a money mule. And the fact that children can unknowingly submit to a scam with just a few clicks on their phone increases the chances of success for scammers.
“The purely digital aspect of how we engage in finance and transfer money kind of lowers the bar for kids – it’s not like they have to go to a branch and do what. whatever, ”he said. “They’re digital natives, so it’s” Hey, do me a favor and click a few buttons, and I’ll give you $ 50 in Roblox dollars if you could help me do that because I have to send some mail. money to my sick grandmother in Romania. (Roblox Dollars are a digital currency used for online gaming.)
It is the responsibility of credit unions, he said, to educate their younger members not only on how to manage their money, but also on how to be on the lookout for scams. He added that parents should also turn on notifications on their child’s behalf so they can be instantly alerted to any new activity.
However, when it comes to raising awareness about fraud, sending an educational email to members every now and then may not be enough.
“The problem with safety education is that members tend to get so much of it that they neglect it,” Pascual said. “So you have to find a way to make it personal, to speak directly to the member and their needs, and when you do that it will translate into the types of behaviors you want to see. “