ViaCarte in collaboration with Digimune | ForbesPro
The big swerve in recent years away from cash towards digital payments has been overwhelmingly positive for most people by increasing options for entrepreneurship and promoting financial inclusion.
In fact, the value of digital payment transactions will reach an astounding $11.6 trillion in 2024 and is expected to grow to $16.6 trillion by 2028, highlighting the extent of this seismic shift.
However, as digital payments multiply, so does the risk. Users benefitted from limitless possibilities online, as well as seeing the explosion of cyber-traps and predators that compromise our security.
As a result, lots of sensitive data ends up in the wrong hands and these incidents show no signs of abating as cybercriminals become more sophisticated by the day.
A far more serious problem is identity theft, which results in billions in financial losses every year. For victims, this experience of having your identity stolen is incredibly destabilizing not only on a financial level, but also emotionally. The loss of control over your money, personal data and even your reputation can feel like an earthquake.
According to The Identity Theft Research Center (ITRC) Annual 2023 Data Breach Report, a record high number of data compromises were recorded in the United States in 2023, with at least 353 million individuals impacted – 78% higher than the previous year.
Warning Signs of Identity Theft
Several warning signs that your identity has been stolen include:
- Calls from creditors regarding accounts you didn’t open
- Bills in the mail
- Charges on credit cards you didn’t make
- Your name appearing in criminal records searches
- Being denied credit you should qualify for
- Not receiving government benefits you’re entitled to
As more data is leaked and new hacking tools find their way to bad guys, end users must become hypervigilant about shielding their data online and responding proactively when it is compromised.
Fortunately, some fintech and Insurtech providers are working hard to create solutions that stop cyber-attacks before they happen.
Preventing a Digital Earthquake
Trust in online payments has already been undermined by the sheer extent of cyber scams today. But the insurance sector is stepping in to play a key role in making online payments safe again.
One of the best products in the market to help cardholders protect against identity theft is called Identicate™. As the brainchild of digital risk experts at Digimune and the payment tech company ViaCarte – which is licensed to issue and acquire by the Visa and Mastercard networks – Identicate™ privacy protection for cardholders was built together with cybersecurity giant Norton and global insurer Lloyds of London.
Identicate is an innovative solution designed to advance privacy standards in Insurtech and Fintech. It covers not only financial losses for cardholders, but also reputational risk associated with identity breaches.
Identicate protects against theft, fraud or data loss online. This includes continuous dark web monitoring and data breach notification in case of any compromised digital assets, including social security numbers, credit card numbers, cell phone number, emails or bank account details.
The Loss of Funds Benefit covers cardholders against losses in the event of device or data loss, financial extortion or loss of funds due to leaked login details.
Identicate also offers education on cybersecurity awareness and prevention including phishing and ransomware training. This is important because human errors open the door to identity theft. Indeed, compromises related to system and human errors more than tripled in 2023, led by a 590% increase in data being exposed in emails and correspondence.
An Ounce of Prevention is Worth a Pound of Cure
Despite the risks of online payments, nobody wants to give up the infinite options, speed and conveniences that are enjoyed daily thanks to the internet.
The pervasiveness of identity theft can seem overwhelming at times, but it’s possible to create a winning strategy to mitigate this risk. Cybersecurity solutions like antivirus and malware protection, two-factor authentication, and VPN’s cover some risks to protect user data, but they don’t go far enough.
Ultimately, cardholder protection is no longer just “nice to have” but a core necessity for individuals and businesses to transact securely in the digital age. Identity theft is one of those areas in life where it pays to take grandma’s advice: “an ounce of prevention is worth a pound of cure.” Once the cat is out of the bag in terms of your personal data, it’s much harder to control what happens. By protecting your data with cardholder insurance products like Identicate, you can complete all your online payments with peace of mind.
This article is for informational purposes only and does not substitute for professional medical advice. If you are seeking medical advice, diagnosis or treatment, please consult a medical professional or healthcare provider.
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