Why Enterprises Need to be Proactive When it Comes to Fraud Prevention

Why Enterprises Need to be Proactive When it Comes to Fraud Prevention

Fraud resolution can be a complex and timely process. Many times, enterprises end up shouldering the bulk of the responsibility when it comes to resolving fraudulent activity. While law enforcement and government agencies are there to provide support, they can’t always act quickly enough to take care of fraud. In fact, law enforcement and lawmakers can only provide support after the fact. This means that each enterprise is responsible for employing proactive safeguards against fraud. For enterprises that handle personal information and sensitive data, prevention, detection and resolution are all part of a healthy business security ecosystem.

What Can Enterprises Do?

While enterprises can utilize the services of law enforcement and lawmakers, they cannot rely on them. Enterprises must take a proactive approach to protecting against fraud. Internal and external threats must be accounted for when creating a plan for fraud management and prevention. Using big data for fraud detection can help shield valuable information from hackers. A big data streaming platform uses real-time ingestion and analysis to speed up these processes. Big data makes it possible to catch fraud in action and stop it before it has real world implications. By getting out in front of fraud, enterprises mitigate the risk of having to rely on law enforcement after the fact. By preventing breaches from occurring in the first place, enterprises can work to further improve data analyzation when fraudulent activity does occur.            

The Uphill Battle of Catching Hackers

Law enforcement is fighting an uphill battle when it comes to catching online hackers and fraudsters. Hackers are known for being able to mask their identities and locations. Law enforcement can invest serious amounts of time and resources into trying to trace hackers. Encrypted communication methods used by hackers stack the odds even higher against law enforcement.

In turn, lawmakers often have their hands tied when it comes to creating laws and regulations that would track down and punish criminals. Privacy laws and concerns regarding access to the online activities of private citizens create sticky situations for lawmakers trying to tighten fraud regulations. The Active Cyber Defense Certainty Act was introduced in 2017 as a way to amend the Computer Fraud and Abuse Act to allow companies to take a more defensive approach against hackers. Companies would be permitted to take measures to identify hackers, retrieve information that has been stolen and destroy stolen information. However, the act has yet to be passed.

While fraud prevention and resolution is a combined effort on the part of law enforcement and law makers, enterprises are the integral source for prevention and detection.

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