New Anti-Fraud Measures After Equifax Hack

US banks are beefing up Anti-fraud measures after the recent attacks on Equifax that resulted in exposing millions of American citizens.

Executives at banks such as Citigroup and Wells Fargo explained that customers would face new checks to verify their identities in an attempt to fight identify thefts, a problem that is causing an estimated $16 billion a year in the U.S. alone.

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“You’ve got to put on some additional screening to make sure that you really are dealing with the person who they purport to be”, said John Gerspach, chief financial officer at Citigroup.

“We’ve got other techniques, and other questions we can ask that are not part of the database that’s been breached”, reporter the financial times.

The techniques currently used by banks are prone to attacks due to Equifax hack.

  1. Two-step authentication wouldn’t work as attackers would claim that they lost their phones and/or forgot their passwords.
  2. Birthday and social security numbers wouldn’t work either thanks to the Equifax hack.

Banks are working hard on gathering more sophisticated data on how consumers use their devices: typing speed, force, typo mistakes, for example, could learn users behaviours, effectively catching fraudsters.

These anti-fraud measures will take sometime to fix whatever has been caused by the Equifax breach.

Are you a US citizen that might have been impacted by the Equifax breach?

Best thing to do is order a credit freeze to mitigate the risk of a fraudster highjacking your identity.

Mohamad El Hout, MBA, M.Eng., CISSP

Mohamad is an entrepreneur and a Senior Security Consultant dealing with the design and delivery of standard and complex security gateway solutions, covering a wide range of cutting edge technologies. His interests include business, technology, leadership, sports, and the continuous pursuit of knowledge.

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