Social media has seen an extravaganza growth, and the number of social media users has reached 4.9 billion by today. In the future, the number will rise to 5.85 billion by 2027. Internet accessibility has brought us closer, but on the other hand, this growth advancement comes with foreseen and unforeseen profound implications for end users.
Due to this surge, insufficient identification verification measures have resulted in fraudulent and illicit activities. According to a report, social media account takeovers by scammers increased 288% year-over-year in 2022.
Social media has become a hub of scammers for illicit activities like online fraud and identity theft, so businesses fear media channelizing. Social platform companies must implement identity verification solutions to combat threats and protect their users’ identities.
Social Media – A Hub of Crimes
Social media is a source of entertainment for some and a platform for earning for others. With a global reach of 4.9 billion users, it has yet to stop expanding soon. The rapid growth of social media and the increasing number of users have brought hackers and social criminals to light.
Any industry can be on the hit list of criminals and cost them beyond monetary. The social scam can result in identity theft, psychological and emotional distress for many, and can result in long-term consequences for the users. Over the year, businesses have been observing scamming behavioral patterns and top social scams.
Social Scams Stats Worldwide
Globally social media users have reached 4.9 billion and are not likely to slow down anytime soon. Several people have lost a fortune to social media worldwide. It extends to financial loss, identity theft, and mental and emotional distress. Here are a few social scam statistics worldwide:
According to the Scamwatch report, 3725 became identity theft victims and lost $2,437,283. For online romance scams, there were 650 reports, and $5,424,775 was lost.
Contrary, betting and investment scams lost $73,762, Job and employment scams resulted in $5,158,103, and investment scams were $63,569,105, respectively. Lastly, 3883 reports for online shopping scams. and people lost $1,071,139.
How to Eliminate Social Scams?
Identity verification solutions have changed the dynamic of social media. Here are five ways to avoid social scams by using IDV solutions:
- Smart password management
- Enable two-factor or multi-factor authentication
- Don’t share on-time code
- Keep social media posting information to a minimal
- Know the signs of stolen accounts
Why Eliminating Social Scams is Crucial for Businesses?
Since the arrival and advancement of the digital world, most businesses have utilized it to reach a wider audience. The internet has made globalization easy, and social sites are pivotal. As social media is a part of our daily lives, businesses use it to reach and promote their products or services.
Since the internet and social media scams have become so prevalent, businesses are in a dilemma and concerned about customer identity protection. If they fail to protect their customer identity, they can face serious legal charges, sanctions, and penalties which can question their credibility. It can result in a permanent exit from the corporate world.
Identity Verification Solutions for Businesses
IDV solutions aim to verify that the person is who he claims to be. Through identity verification, businesses can combat sophisticated cyber threats, breaches, or activities and protect themselves from financial or legal issues while staying compliant. IDV is crucial in Know Your Customer and Anti-Money Laundering regulations to combat these threats.
The lack of digital identity verification measures is among the top reasons social media platforms expose threats and crimes for users and businesses with fake accounts. By implementing proper identity verification solutions by experts, companies can prevent such scams in real time and avert legal, financial, and reputational damages.
Role of IDV in Combating Social Scams
Billions of people use social media and worry about confidentiality and security. Eliminating threats and keeping risk minimal is pivotal for organizations, or they can lose a fortune to social scams. Eliminating social scam risk is crucial for businesses, and they can prevent social scams through identity verification solutions.
Among the significant reasons for social scams is the need for proper IDV practices. With appropriate IDV solutions, businesses can gain billions which costs their credibility. Hackers can easily create fake accounts and scam others, which can result in financial loss. Other than that, terrorist financing, identity theft, and money laundering are rampant without proper identity verification measures.
It is vital to ensure identity verification solutions align with the regulations of Know Your Customer and Anti-Money Laundering regulations to eliminate social scam risk. IDV and E-IDV can save businesses from significant trouble and ensure smooth operations for them while providing security to their users
Another way of eliminating social scams is to let a third party help you with identity verification solutions. For instance, Shufti Pro is an award-winning identity verification provider. Their identity verification is beyond regular. As a result of KYC and AML compliance, the y boost conversions and reduce fraud across the globe. Global companies rely on them for secure IDV, eIDV, and other solutions. From document to face, address, biometric, video, audio, 2FA, and others, they have a wide range of verification solutions for numerous industries, including FinTech, crypto, banking, finance, eCommerce, gaming, gambling, etc.
Benefits of Identity Verification to Avoid Social Scams
Digital Identity verification can help businesses avoid scams and provide the following benefits:
- Protection against threats and illicit activities
- Prevent fraudulent activities
- Enhance security and build reliability
- Securely onboard new users
- Provide end-to-end encryption
- Protect friends, family, and social circle
- Bring in more users
Since modernization, social media threats and risks have become more sophisticated and don’t seem to stop anytime soon. The only way to combat social scams is to implement proper IDV solutions into practices that go beyond the ordinary. Ensure that identity verification is pivotal to stopping social scams, as it is fast, accurate, reliable, and globally compliant with KYC and AML standards.