Serial data breaches.
What is known as "clean fraud" in the e-commerce industry tends to happen after a major data breach, when millions of customers' data (name, card number, IP address, physical address, etc.) have been stolen. The data is clean, so it is more difficult for fraud prevention softwares to detect the fraudulent transaction on time.
Now, why are there so many major data breaches? A single point of failure, which is associated with centralized systems privileged by e-commerce platforms, certainly does not apply to the big ones. Those can afford redundancy, which is inherently expensive. Having said that, centralized databases allow specific types of commands, and whoever has access credentials can actually compromise the entire system (see "Serial Human Dysfunctions").
After a data breach, why are customers' data so easy to utilize unbeknownst to them? Even the billion-dollar e-commerce companies are still choosing to store their customers' information, unencrypted. While encryption is standard during the data transmission process, many enterprises have failed at implementing the same for information held within their databases. And that's a hacker's dream, because they are able to easily use stolen data in its rawest form.
Serial human dysfunctions.
Did you know that human error is behind more than two-thirds of data breaches pertaining to centralized data storage systems?
It oftentimes starts with excessive user privileges. It is indeed common for system administrators to grant other employees excessive database privileges that exceed the requirements of their job functions, consequently increasing risks, since some employees may eventually abuse their permissions, and trigger potentially detrimental data breaches.
When systems weaknesses become a target, software vendors respond with patches. However, database administrators are often too busy to keep up with all the releases. And the longer a database runs with missing patches, the more susceptible it is to developing malware.
On the consumer's side, human error always starts with poor password management. (Source: DataInsider) 18% of the individuals surveyed reuse the same password on multiple platforms for easy remembrance; while 39% write it down on a piece of paper; and 10% choose to secure it in a computer file. Need we say more...?
Our private Blockchain-based data storage architecture promotes trust between your organization and your customers for all transactions purposes and more and mitigates internal fraudulent issues.
Leveraging the BlockID Private Blockchain Ecosystem entails storing the customers and employees biometric information in a virtually incorruptible system to ensure they are who they say they are at all times throughout the process. Employees' and customers' data stored in our distributed ledger aren't subjected to data breaches.
The immutability of a distributed ledger is leveraged to record service provider-customer interactions. The document can never be modified, leaving an auditing trail, and therefore creating trust between all parties involved.
“Cybercrime is a daily threat to every organization and government across the globe...These Verizon solutions (powered by 1Kosmos BlockID) offer a significant step forward in cybersecurity protection.”
Alex Schlager, Executive Director and Chief Product Officer of security services at Verizon Business