Latest news with #digitalfraud
Entrepreneur
10 hours ago
- Business
- Entrepreneur
Guardians Of Digital Trust
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. As India's digital penetration deepens across Tier I to Tier III cities, the digital economy is thriving, but so are digital frauds. According to the Reserve Bank of India's (RBI) annual report, digital payment fraud surged more than fivefold to INR 14.57 billion (USD 175 million) in the fiscal year ending March 2024. KYC (Know Your Customer) scams are on the rise, with cases like a 73-year-old Mumbai woman losing INR 2 lakh and an RTO clerk duped of INR 4.35 lakh, exposing the growing vulnerabilities in the system. Amidst this landscape, IDfy is stepping up to combat fraud with Artificial Intelligence (AI) solutions. "We power about 60 per cent of all video KYCs in India," says Ashok Hariharan, Co-founder and CEO of IDfy. The company provides end-to-end verification services for banks, insurance providers, credit card issuers, and online merchants from employee onboarding to authenticating transactions. Yet, as Ashok points out, fraudsters are constantly evolving. "Fraudsters are always finding holes in the lock one area, they'll find a backdoor." Phishing, digital arrest scams, and mule accounts have proliferated, exploiting weaknesses in systems that rely heavily on physical KYC or less sophisticated technologies. "They target cooperative banks with weaker systems, often colluding with branch managers to bypass manual verification," Ashok adds. AI, however, is proving to be a formidable defense. "Deepfake detection, device mimicry, and intrusion attacks – we can catch all of this today," Ashok explains. By using AI models that analyse anomalies, IDfy can flag suspicious transactions such as a low-income applicant seeking a high-value loan. "A person living in Dharavi applying for a INR 10 crore loan that's anomalous," he highlights. IDfy's platform operates on four fundamental questions: Does the individual exist? Is the person the one transacting? Have they committed fraud before? Are they likely to commit fraud in the future? With AI, the company matches PAN card selfies to live photos, preventing fraudsters from impersonating others. It also cross-references court records and prior transactions to strengthen fraud detection. The need for such rigorous checks is clear. "In a test with cab aggregator platforms, seven per cent of vehicles we flagged were linked to drivers with criminal records or vehicles involved in hit-and-run cases," Ashok reveals.
Zawya
03-06-2025
- Business
- Zawya
Buyer beware! Crypto fraud keeps Nigerian agencies on toes
Nigerian authorities have continued to raise the red flag on digital fraud through Ponzi-style schemes, even as they track down, arrest and recover funds from the digital investment platform Crypto Bridge Exchange (CBEX), which collapsed in April after carting away more than $980 million from local investors. The anti-graft agency, Economic and Financial Crimes Commission (EFCC), confirmed that it had arrested some persons connected to the massive fraud and recovered some of the money. Ola Olukoyede, EFCC chairman, said the commission had made 'significant progress' in its investigation into the Ponzi scheme, which scammed thousands of Nigerians.'We have gone far with CBEX. We have been able to recover a reasonable amount of money,' Mr Olukoyede said. The stolen funds are in cryptocurrency. In the meantime, the Securities and Exchange Commission has issued a warning about unregistered investment schemes, including Silverkuun Investment Cooperative Society/Silverkuun Ltd.'The Commission hereby informs the public that Silverkuun Investment Cooperative Society/Silverkuun Ltd is not registered to operate in any capacity in the Nigerian Capital Market,' it said in a circular issued on May 28, 2025.'The investing public is therefore reminded to verify the status of companies and entities offering investment opportunities on the Commission's dedicated portal before transacting with them.'On the CBEX case, authorities admit the investigation has been challenging due to the use of non-custodial wallets by the fraudsters -- crypto wallets not tied to any verifiable identity.'So, from the noncustodial wallet, they moved it to some wallets in Europe, eastern Europe, Cambodia…and from there, they disbursed the money. We have been able to block some of these wallets where money has not been disbursed,' Mr Olukoyede said. Two suspects have been arrested, while others, including four Kenyans, remain at large.'We are after quite a number of people declared wanted,' he said. Foreign collaboratorsMeanwhile, last week the Federal High Court in Abuja ordered the arrest and remand of six CBEX promoters over the scam. Justice Emeka Nwite, granted the EFCC's ex-parte motion seeking warrants for the suspects' arrest and detention. The suspects are Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others who have not been named. According to the complaint by EFCC, the suspects used a front company, ST Technologies International Ltd, to lure Nigerians into investing in CBEX with promises of 100 percent returns in 30 days. The court heard that the scheme had foreign collaborators and required urgent action to prevent suspects from fleeing. The judge ordered that the accused be held in EFCC custody pending further investigation and potential prosecution. According to the EFCC, ST Technologies was registered with the Corporate Affairs Commission but lacked a licence from the Securities and Exchange Commission (SEC). The commission clarified that ST's SCUML certificate does not permit it to operate as an investment firm. CBEX collapseCBEX collapsed in April, leaving investors unable to access their funds after the platform began restricting withdrawals. Users were asked to pay additional verification fees—$100 or $200 depending on account size—just before the platform shut down. Despite its collapse, the platform reportedly resumed limited operations, allowing new registrations and withdrawals in what experts described as a tactic to restore investor confidence and continue the fraud. The SEC had warned Nigerians against investing in unregistered platforms. SEC director-general Emomotimi Agama said the commission was unaware of CBEX's operations prior to its collapse.'It is an offence in Nigeria for any entity that is not registered by the commission to carry out the business of online foreign exchange trading platforms or related services,' the agency said. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
