SEON CEO: Cyber ​​Threat Requires Multivendor Approach

From criminals creating fake accounts using stolen or synthetic identities, to exploiting the traditional onboarding process, to exploiting data breaches to launch credential stuffing attacks ; there doesn’t seem to be a shortage of avenues fraudsters use to launch attacks targeting online businesses.

The pandemic hasn’t helped either, creating an ecosystem that has accelerated cybercrime across all industries and sectors.

“What we are seeing today is the highest level of successful fraud attacks, more people are being targeted, unfortunately, and cybercriminals are getting smarter,” said Tamas Kadar, CEO of UK fraud prevention firm SEON, to PYMNTS in an interview.

He said cybercriminals use bots and heavy automation to scrape passwords and access websites to gain a financial advantage over companies under attack.

The introduction of open banking in Europe, made possible by the revised Payment Services Directive (PSD2), has also had a negative effect on the payments landscape in the region, leading to an increase in chargeback fraud in the recent years.

Read the PYMNTS report: Mitigating the surge in e-commerce chargebacks

And recent data from PYMNTS backs up that claim, showing that 39% of e-commerce shoppers in three countries surveyed – Australia, the UK and the US – say they dispute more transactions now than they did so before March 2020.

Overall, Kadar said companies could not have anticipated the scale of the problem and were caught off guard: “As they went online and started providing more digital services, many companies were unprepared, so their approach was more reactive. than proactive.

Strengthen the cyber ecosystem of companies

This lack of preparedness is part of the reason why the Anglo-Hungarian online fraud prevention company, founded in 2017, supports businesses with solutions around digital identity validation through its API-platform. first, connecting it to the entire customer journey, starting with onboarding.

“It is a transparent and invisible way to verify user accounts and transactions. We use data enrichment, digital footprint analysis, and machine learning methods to assess onboarded customers and their transactions,” he explained.

The London-based company has grown significantly in recent years, becoming “the go-to fraud prevention solution” for companies like Revolut, NuBank, Afterpay and Patreon in the last year alone. It also tripled its annual recurring revenue and opened new offices in Indonesia as part of plans to further expand its operations in the United States over the next two to three years.

Read more: Fraud prevention company SEON raises $94 million

Further proof of its growth and surging investor confidence, the FinTech company recently raised $94 million in a Series B funding round, which was partly intended to increase the number of partnerships with e-commerce platforms.

Holistic and multi-layered approach

Cybercriminals are getting smarter and finding new loopholes to threaten businesses, an indication that companies and fraud protection providers need to be on top of their game.

The most effective way to combat these attacks, according to Kadar, is to cover all of their bases by taking a holistic, multi-layered approach that engages different cybersecurity vendors.

“For almost every type of cybersecurity problem, there is a different solution to ask for. It is very rare to find a [single] vendor or an off-the-shelf solution that can be applied to all of these different problems,” he explained.

However, the companies’ greatest asset is the amount of data they have collected. All the more reason for companies to invest in cybersecurity and be proactive in securing their own databases, ensuring they are compliant with regulations and implementing best practices.

Going forward, he said they are looking to create a solution to help customers verify a URL or business online using the same data collection and enrichment process they use today.

And given the heightened geopolitical risks, jumping into the anti-money laundering space wouldn’t be such a bad idea either.

“It’s very helpful for many companies to check the sanctions list and politically exposed persons lists to see if the person they’re interacting with is on one of those lists,” Kadar said. “It’s something we would like to achieve.”

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