Businesses all across the world have accelerated the digitalization of their businesses and made it possible for employees to work remotely. The pandemic largely pushed those changes, but the adopted approach is now set in stone. As a result, many businesses are now more susceptible to cyberattacks. Digitalization can be a lifesaver, or more accurately, it can save businesses, but it must be done correctly and incorporate cybersecurity measures. Companies had to up their identity verification procedures and concentrate more on cyber threats as a result of the rise in cyberattacks. In this post, we’ll talk about the rise in cyberattacks we’re facing and the necessity of digital identity verification.
A digital age
Since the moment we started utilizing the internet, our entire way of life has changed drastically. We have grown accustomed to using it for both business and personal activities, from scrolling through social media to ordering that late-night sushi you craved on Thursday night via a food delivery app. Just consider the significant impact COVID-19 has had on the eCommerce industry. In 2020, the first year of the pandemic, eCommerce sales grew by $244.2 billion, or 43%, from $571.2 billion in 2019 to $815.4 billion in 2020, according to the Census Bureau’s 2020 Annual Retail Trade Survey (ARTS).
In June 2020, the FBI did observe a 75% increase in daily cybercrimes after the outbreak began in June 2020, though. Despite the fact that the COVID-19 pandemic broke out a number of years ago, the number of cybercrimes has continued to rise. According to data recently released by Check Point Research (CPR) on trends in cyberattacks from the previous year, global cyberattacks on business networks rose by 38% per week in 2022 compared to 2021.
We have increasing access to all online services, and the options are expanding daily. Businesses are turning to providing their services online in order to stay current and keep up with the changing environment. Those who don’t spend money on cybersecurity are particularly at risk. Small businesses are the target of 43% of cyberattacks, and 60% of them fail within six months.
Cyberattacks are on the rise
Recent cyberattacks across the globe have shut down operations at critical points in our lives as well as the economy. The military, hospitals, food stores, media groups, banks, and many more were among those impacted. How might a breach in a company’s security impact us? The information that we exchanged with that business may have been compromised.
We can still be in danger even if we don’t travel. The user data of Zoom, a well-known video communication software program, was compromised as a result of a cyberattack. These occurrences severely harm the reputations of the companies involved as well as the victims of the attack, and it is extremely difficult to win back lost trust.
Why cyberattacks persist
It’s because it’s the simplest choice. Only knowledge and internet access are needed for remote attacks. In addition, the nature of the internet allows for these kinds of attacks to be anonymous. Attackers can therefore obtain the information they desire with little effort and escape punishment.
The financial impact of cyberattacks
Data breaches pose a serious threat to all types of businesses. The average cost of a data breach worldwide, according to IBM, is $4.35 million. According to Audit Analytics’ “Trend in Cybersecurity Breach Disclosures” study from 2020, a data breach costs public companies $116 million on average. After a successful attack, small businesses invest an average of $955,429 to get back to normal. Small and medium-sized businesses lose more than $2.2 million a year due to cybercrime. Even more concerning is that 47% of small businesses don’t know how to defend themselves from hackers. According to a recent Cybersecurity Ventures report, the cost of cybercrime worldwide is expected to reach $8 trillion annually by 2023.
Verifying an identity
What steps can businesses take to combat cybercrime? Invest in cybersecurity first. Complying with KYC regulations is a crucial component of that. Companies should be aware of who their customers are and whether they are who they claim to be. Identity verification is the simplest method of verifying the user’s identity. Businesses start to invest in identity verification procedures as they become aware of the potential benefits of this technology. The global identity verification market is anticipated to increase from 7.6 billion dollars in 2020 to 15.8 billion dollars by 2025, according to a Research and Markets report.
What other ways are there to combat cybercrime using the identity verification process? There are a lot of options. Data transmission to a user can result in data loss. The data can be encrypted to lessen that risk. Cryptography is the method of data protection that is most frequently utilized. Identity-based encryption and identity verification have the potential to be used to verify that a user is who they claim to be. Unfortunately, this would necessitate potential users having technical knowledge. Identity verification is also utilized to uphold customer satisfaction and demonstrate a company’s concern for the security and privacy of its customers. The company’s reputation is strengthened by this action.
Your customers can rest easy knowing that their data is safe and that their accounts are secured using FTx Identity. Our ground-breaking age verification technology (AVT) guards against the sale of age-restricted goods to minors while seamlessly integrating with desktop, mobile, and web applications to provide a simple user interface. Customers can take advantage of a simple self-registration process and online ID verification to buy age-restricted products with ease while safeguarding their personal information, and retailers can stay in compliance with laws and sell age-restricted products without worrying about losing their license—convenience meets peace of mind!
Are you ready to explore the exciting possibilities of FTx Identity? Unlock its untapped potential and see what positive changes it can bring by setting up a consultation with one of our specialists and experiencing a demo!