Artificial intelligence (AI) and machine learning (ML) are quickly becoming more advanced and bypassing older cybersecurity software. This makes them a real threat to all businesses that conduct work online, which, now, is virtually all businesses. By using passwordless Identity Providers (IdP) to protect users’ information, companies can both prevent fraud and catch fraudulent access attempts quickly, minimizing damage. Here’s what you need to know.
The Reality of AI-Based Fraud
AI and machine learning programs use multi-layered algorithms to fraudulently access sensitive information by spoofing credentials, bypassing credential systems entirely, or finding and gathering credentials via keylogging and other spyware, among other methods.
ABC News reported in October of 2023 that businesses, especially in the financial industry, are extremely concerned with AI generation of identities and what they’re terming “synthetic fraud.” According to this report, “Criminals using AI — which can help perform rapid, automated tasks, among other functions — can scrape the internet at record speed and, once armed with information from a combination of stolen, fake and legitimate digital data sources, can masquerade as other people.” They indicate that this fraudulent behavior is spreading rapidly outside of the finance industry into complete identity theft including lifting Social Security numbers to create false personas that elude credit monitoring and act as a front for phishing scams.
Because of these criminal behaviors and programs, more and more businesses operating online are taking more extreme security measures to ensure the safety of their clients’ data and their internal operations.
How IdP Assists with AI-Based Fraud Detection
Identity providers (IdP) are services that help businesses and agencies to verify the identity and protect the data of their users every time they attempt to access their information. These services can use a variety of tools – including multi-factor authentication – to store user information which can then be cross-referenced with user inputs to act as a sort of digital key and lock system.
IdPs make it more difficult for fraudsters to succeed in their attempts by putting barriers up that must be validated before they can proceed. For example, a fraudulent user might be able to guess or attain a person’s password and username, but they are unlikely to have access to that person’s phone, email, or other personal information. If MFA is established, the IdP can detect and block unauthorized access attempts quickly, even going so far as to lock down the account if too many attempts are made. IdPs can also track any suspicious activity, catching fraudsters who manage to get past these initial barriers quickly and helping to prevent or reverse major damage.
According to Industry Insider, the ideal IdP for protection against identity fraud, especially AI and machine learning fraud, should
- Be able to identify specific needs for your company based on available user base data.
- Be scalable to company size and flexible enough to grow alongside you over time.
- Have strong fraud detection capabilities that are laid out in their initial contracts and regularly updated with new technology.
- Comply with any applicable industry, state, and federal regulations such as HIPAA or GDPR.
- Be able to provide a user-friendly experience with an uncomplicated interface that reduces costs associated with frustration.
- Easily integrate with existing applications for smooth launching.
- Have strong equity policies in place, helping underserved populations access their information with as much ease as possible.
- Have a strong reputation of success and positive image with their existing and previous customer base.
How Photolok Can Help Defend Against AI-Based Fraud
Photolok is an IdP technology that utilizes photos not passwords as identifiers. Users choose photos to act as their verification tools; when logging in, the user selects their account photos from a photo panel. This technology is excellent for protection against AI-based fraud due to its difficult-to-crack setup; randomized photos are far more difficult for an AI to detect and decipher than a password, making Photolok practically immune to many classic AI and machine learning attacks – there are no keystrokes to log and no passwords to phish or crack.
Beyond this, Photolok has options for one-time-use photos, making remote access more secure by preventing over-the-shoulder information gathering. It also has options for Duress photos, which send an alert to an administrator that a particular logged session has been made against the user’s wishes, allowing them to secure the account more quickly.
Photolok integrates into many existing security programs for a seamless transition to the system. It can be used as an authenticator and can limit the number of devices allowed to access information, adding additional security measures for early fraud detection and prevention.
For a demonstration of Photolok and how it might work for your company, you can meet with the sales team.
Read More: What is ID Verification in Cybersecurity
Read More: Photolok vs Recaptcha for AI Attacks
Read More: MFA, SSO, IdP for Fraudulent Detection
