How to Prevent Identity Fraud with Pentesting & Red TeamingHow to Prevent Identity Fraud with Pentesting & Red Teaming
Digital onboarding is essential for companies outside the financial sector too: it optimizes processes and improves the customer experience, but it also poses significant security risks. As identity fraud using artificial intelligence becomes increasingly sophisticated, companies would be well advised to review and protect their KYC processes.
According to the FBI, cybercrime caused an estimated $10.2 billion in damage in the US in 2022 alone. Regulations such as the EU’s Network and Information Systems Security Directive (NIS2) and new cybersecurity disclosure requirements in the US are making legal action against negligence or fraud increasingly common, putting pressure on companies to better secure their systems.
This white paper highlights the risks associated with AI-generated identity fraud, but also outlines ways in which companies can counter this threat with the right tools and measures:
Pentesting and red teaming, for example, are effective methods for identifying security gaps, especially during onboarding, when criminals attempt to infiltrate systems using fake identities.
This is because pentesting and red teaming can proactively and more effectively uncover vulnerabilities before real attackers can exploit them. To counter AI-driven identity fraud and stay ahead of the game, companies are therefore well advised to regularly review their digital onboarding processes and secure their systems.
In addition to regular system checks, combining automated identification procedures with live video checks can help prevent AI-based identity fraud, meet legal and regulatory requirements, and build lasting trust with customers.
Pentesting & Red Teaming: Important Tools for Detecting Identity Fraud During Digital Onboarding
Digital onboarding is essential for modern businesses: it optimizes the customer’s experience, but it also poses significant security risks. As AI-powered identity fraud becomes more sophisticated, companies must proactively protect their KYC systems and processes. In 2022 alone, cybercrime caused an estimated $10.2 billion in potential losses in the US (FBI).
Penetration testing (Pentesting) and Red Teaming are key to identifying security gaps, especially during onboarding. The simulations made possible by these methods uncover vulnerabilities before real attackers can exploit them.
Combined with strong video identification procedures, they help companies comply with legal and regulatory requirements, improve fraud detection, and build lasting customer trust.
With increasing regulatory pressure from the EU’s NIS2 Directive to new US regulations on cybersecurity disclosure Chief Information Security Officers (CISOs) face growing personal liability. Legal action against negligence or fraud is becoming more common. Robust security testing protects not only your systems, but also your executives.
Conclusion: To stay one step ahead of AI-driven identity fraud, companies must secure their digital onboarding processes with penetration testing, red teaming, and reliable video identification. Now is the time to act – test your systems, protect your users, and secure your digital future.