Debates about digital security are becoming increasingly important around the world. Today, with advances in the digital landscape and, above all, in tokenized assets, this topic is becoming even more present. However, while technology offers us new possibilities and more efficient ways of managing and generating income, it also presents more challenges. Recently, in a report provided by Mastercard, we became more aware of how important digital security can be. The report shows that even though banks are investing more in security, they are still the biggest victims of fraud. This shows that opting for the right protections and investing in specific security schemes offers more performance in your digital security. You just need to know exactly what types of fraud are most common and how to protect yourself from the main ones.

Main Types of Fraud Faced

Choosing to combat the main types of fraud is the best way to gain performance from your digital security. By protecting themselves against the main types of fraud, banks and fintechs can get much more out of their investment in digital protection. Learn about the main types of fraud:

Phishing

Phishing, a scam that alludes to the English word for “fishing”, occurs when the scammer poses as a real financial institution and creates an email, landing page or any form, sends it to the victim and expects them to fill it in. The information filled in, such as passwords, logins and documents, is stored by the scammers and used later.

Vishing

This scam is practically the same as phishing, with the difference that it is applied exclusively to smartphones. In this scam, the scammer can request a form, create fake applications or even call the victim posing as a real institution, all with the aim of stealing data.

Keyloggers

Keylogger is a software scam, an invasive application popularly known as a “Trojan horse”. This software is installed on the victim’s machine and starts monitoring their keyboard activity and commands in order to capture passwords, logins and other data.

Malware

All invasive software is called malware, so this is undoubtedly one of the most widely practiced scams in the world. There are several types of malware on the market that can threaten your digital security:

• Trojan horse;
• MitB – software that steals data from browsers;
• Overlays: creating a front page on top of an original one;
• Sniffers – trackers: monitor messages and track data.

You have to be very careful with the above software, as it is a major source of fraud around the world. Investing in digital security is essential for companies to maintain their reputation, guarantee their own security and that of their customers.

Banks vs. Fintechs: Who’s Winning the Digital Security Battle?

As we commented, although there is a big difference in investment in digital security between large banks and fintechs, fintechs suffer far less from these attacks. There is a lot to be seen from this data and we can learn important lessons about the fight against digital fraud.

Traditional banks

Traditional banks invest around 25% more in the fight against digital fraud, or more than 4 million dollars. But even so, these institutions are the most affected by fraud and scams. There are many reasons for this, but we can list at least two:

• Banks are more targeted and suffer proportionally far more attacks;
• They are less adept at using the main digital protection tools.

According to market analysts, even with so much investment and financial capacity, banks suffer when it comes to applying the main protection tools in their institutions. There are several reasons for this, such as the proportion of clients of the big banks, their rigid hierarchy and the lack of trained professionals.

Fintechs

Fintechs, on the other hand, are much more careful, right from the start, to deal with the main frauds in the digital and financial market. The professionals and entrepreneurs who work in fintechs are closer to their main systems and resources and ready to deal with any problems in the area. They also have smaller scale, which makes their management more accessible and considerably easier. These companies can include new tools in their routine, platforms and applications that make digital security even more accessible. VASPs also join the list of fintechs that protect themselves efficiently, thanks to their proximity to blockchain technology.

Technological Solutions and the Role of Blockchain

Technology plays a key role in the security of fintechs and banks, especially with tokens and other tokenized funds. Blockchain is a technology that allows these securities to be secure, decentralized and transparent. The perfect condition for applying digital security. There are many securities that use asset tokenization and all of them offer this type of security and protection. BLOCKBR, as a specialist in tokens, allows your company to enjoy and generate capital and have very secure fully tokenized assets. Our Whitelabel platform is the most advanced in the field – check out its features:

• Made especially for small and medium-sized enterprises – SMEs;
• Ideal for companies to attract investment;
• Secure environment for trading assets in tokens;
• Space for investment advisors and investors;
• It offers space for documents and electronic signatures;
• Complete management of your tokenized assets.

Our tool is very complete and allows your business to make use of blockchain, the same technology behind major cryptos on the market such as DREX, Bitcoin ETF and Ethereum ETF. Bring more cutting-edge technology to your business, with more digital security, with BLOCKBR.

Digital Security in the Financial Sector: Paths to a Safer Future

Digital security in the financial sector is a topic of the utmost importance, as it allows companies to act securely and also protect their main clients. Your tools are secure and also contribute to your business having a good reputation in the market. It is essential that these steps with digital security are taken and carried out throughout the company’s routine, especially with registration and asset management tools. And among the safest and most reliable ways is the tokenization of assets, crypto in general and digital assets.

Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.

The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.