Callsign says outdated verification and authentication technologies like one-time passwords (OTPs) are to blame, not people
SINGAPORE – Media OutReach – 5 May 2022 – Callsign, the digital trust pioneer, has launched the e-book “Online scams, the psychology of fraud and how technology can prevent it”. Written by Richard Shotton and Callsign, the eBook is free to download and contains valuable insight and insight into how online fraud works and the steps needed to reverse its exponential growth.
Estimated to cost the global economy US$5 trillion annually, online scams are once again on the rise globally. Recent high-profile bank frauds in the Asia-Pacific region reveal the extent to which criminals will steal, deceive or hack victims’ sensitive data for illegal financial gain.
Commenting, Namrata Jolly, Managing Director for Asia-Pacific, Callsign, said:
“A common denominator in the failure to fight online fraud is the use of outdated technologies to verify and authenticate customers, even though these have proven vulnerable to compromise. For example, criminals know how to Bypassing one-time passwords sent via SMS has been around for years, but the technology is still used by the majority in the banking industry.
The e-book points out that while educating consumers helps prevent them from falling victim to fraud, consumers are consumers while fraudsters are professional criminals, who use sophisticated methods to deceive humans and circumvent technology.
Although text messaging is a ubiquitous communication channel, this means that it is also accessible to fraudsters. SMS OTP relies on Signaling System 7 (SS7 – a technology used by telecom operators since 1975) which is known to be vulnerable to cyber attackers.
Callsign’s own survey of consumer attitudes towards technology and scams found that only 8% of consumers trust OTP SMS to communicate with their bank.
Callsign’s technology enables organizations to dispense with one-time SMS passwords and other dated authentication technologies, helping to prevent fraud, including account takeovers, due to compromised devices, stolen credentials, SIM card swapping and other threats.
“There is a common perception that humans are to blame for online fraud. This is not the case. The root cause of online fraud is technology, as many online service providers have no simply not developed authentication methods to meet the needs of the digital age,” added Jolly.
To download the free eBook, click here. Registration is not compulsory.
About the callsign
call sign is a pioneer in digital trust through proprietary technology that uniquely mimics how humans identify in the real world. Positive identification of genuine users ensures privacy, security, and minimal friction while ensuring bad actors are blocked. With a simple swipe or keystroke, users can be personally recognized with 99.999% accuracy, delivering the most faithful AI-based user recognition for the digital world. To learn more about how this technology is being used to build digital trust in financial institutions, governments and commerce around the world, visit: https://www.callsign.com/
The issuer is solely responsible for the content of this announcement.