Identity Theft: A Persistent Threat

When it comes to bank cards and financial data, criminals obtain personal information and use it without the owner’s knowledge.

In many Latin American countries, identity theft laws impose prison sentences and significant fines for this criminal act. National financial protection agencies define it as the misuse of personal data to commit fraud. Although identity theft is not new, it has escalated with the expansion of the internet. Using someone else’s information for purchases, loans, or employment is becoming increasingly common—and more dangerous.

In the digital world, usernames and passwords are prime targets for cybercriminals. Protecting our online identity is crucial, and this right is recognized internationally. Despite financial institutions’ efforts to prevent fraud, user data remains vulnerable and is actively traded on the Dark Web.

Criminals steal banking information through techniques like phishing and malware. While many individuals fall victim to these methods, the biggest threat comes from data breaches within institutions that store customer information. A single security lapse can expose sensitive data to malicious actors in an instant.

Financial security experts predicted that by 2023, bank card theft could lead to economic losses of up to $32.96 billion in the United States.

This issue is not exclusive to the U.S.; India, the United Kingdom, and Mexico also face significant rates of stolen bank cards. In Mexico, 2.6% of bank cards have been compromised, placing the country fourth worldwide in this alarming trend.

Key Considerations

Stolen cards often come with additional data such as addresses, phone numbers, and emails, which significantly increase the risk of identity fraud. Alarmingly, over 60% of stolen cards contain extra information, primarily obtained through hacking techniques and brute force attacks.

In Latin America, debit card theft is more prevalent, posing a greater risk to individuals’ capital compared to credit card fraud. This highlights the urgent need to strengthen security measures and data protection to counteract this growing threat.

Required Actions

Financial institutions must implement robust security mechanisms to protect customer data from identity theft.

Effective communication: Institutions should alert customers about suspicious transactions and unusual activities. They must also provide tools to quickly block accounts in case of irregularities.

Customer education: Banks must teach customers safe online banking practices, such as accessing services only through the official bank URL and avoiding emails or websites that request confidential information.

Advanced fraud detection: Implementing AI-powered transaction monitoring software is essential to detect potential data leaks and prevent fraud before it happens.

In summary, financial institutions must take a proactive role in protecting customer data by implementing advanced technology and continuous financial security education to mitigate identity theft risks.

How Does Sentinel Preventively Protect Your Customers’ Data?

With Sentinel Cyberintelligence, you can transform your information security. Our 24/7 monitoring of the Digital Underground proactively tracks and eliminates emerging threats and imminent attacks. We safeguard your customers’ data and financial products from exposure on the Dark Web and other hidden corners of the internet—before it’s too late.

If you want to learn more or request a demo, contact one of our representatives today.

Laura Marcela Rivera
Sentinel – Colombia