Fraud Detection and Prevention (FDP) is becoming an integral part of business plan for cloud provide
The eruption of cloud technology is is a boon to enterprises. It is evolving now like never before with every business small or big adapting it. Industry professionals believe this technology is only ...
The eruption of cloud technology is is a boon to enterprises. It is evolving now like never before with every business small or big adapting it. Industry professionals believe this technology is only going to grow even further in coming years. The advantages cloud technology provides to industries are many. Cost efficient, Backup and Recovery, Almost unlimited storage, Automatic Software integration, Easy access to information and Easy deployment are a few of them. Cloud providers are attracting enterprises with rapid elasticity, great availability, on-demand provisioning and pay-per-hour pricing model. But the setback is the advantages that cloud offers to enterprises also offer same advantages to hackers making it liable to attacks. All it requires to acquire cloud service is a working credit card without even needing a salesperson, which makes cloud even more feasible base for cyber criminals to commit fraud. While cloud is an outstanding enabler for legitimate business it is also an exceptional enabler for fraud activities. So, without appropriate fraud detection and prevention measures, cloud providers can become involuntary hosts for cyber criminals.
Even though the cloud providers dedicate their resources to customer data security, they can’t overlook the fact that those customers could be a threat. Typically, hackers build their operations such as phishing schemes, identity theft, malware and money-transfer scams on platform services which they acquire using stolen credit cards. In some cases, the cyber criminals directly hack into the customer’s legitimate account and use their platform to build their own criminal activities. The hackers, even using Infrastructure as a Service to gain enough on-demand processing power to launch multiple attacks.
In 2012, a joint investigation by Guardian Analytics and McAfee revealed a huge, cloud-based banking fraud that attempted to con more than $70million from account holders in United States, Latin America and Europe. The investigation uncovered that the scheme was based on the vulnerabilities that cloud holds such as automation and resource availability, contrary to single host computer.
So, it is mandatory for cloud providers to allocate resources for fraud detection and prevention systems if they don’t wish to ruin their reputation and loose customer base.
Also, the providers should be very delicate while monitoring activities. They must balance the need to eliminate illegal activities and customer privacy concerns. Instead of monitoring the customer data, they must search for patterns that are indicators of fraud using the sophisticated, advanced and accurate fraud detection systems.
Due to technological developments and vast consumer base operating online fraud management is a major challenge not only to cloud service providers but every industry small or big.
The purpose of FDP is increasing security, reducing monetary losses and improving operational effectiveness. The market is rapidly growing at a CAGR of 15.6%. Rise in online transactions, rising threats to financial industry, increasing monetary losses to fraud activities are driving the market. Customer-centric fraud prevention and Real-time fraud prevention are the opportunities in the market to get a hold on.
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