From buying bags to selling shoes, and learning new languages to teaching old skills, more financial transactions are conducted online. This is making our world increasingly more interconnected and making more of our personal information available online. Unfortunately, this online convenience also increases the risk of malicious actors exploiting vulnerabilities to steal identities. 

Identity theft can disrupt your financial stability, damage your reputation, and disturb your peace of mind. That’s why we’ve always prioritized protecting your sensitive information and safeguarding it from the threat of identity thieves. Explore how we achieve this in our latest blog.

First, What is Financial Identity Theft?

Financial identity theft occurs when bad actors use stolen personal information, like Bank Verification Numbers (BVNs), debit card details, and bank account numbers, to commit fraud. This can include unauthorized purchases, draining bank accounts or even taking out loans in the victim’s name. A recent report by identity verification service, Smile ID, reveals a consistent year-on-year increase in attempted identity theft, peaking at 26% in the third quarter of 2023. This highlights the critical need to be cautious when sharing and using your financial identity and details.

Recognizing the Signs of Financial Identity Theft

Detecting financial identity theft early is crucial for minimizing its impact. Be on the lookout for these warning signs:

• Unauthorized Transactions: Unexpected withdrawals or charges on your bank account.
• Missing Emails: If you notice that you’ve stopped receiving regular bills or financial statements in your email inbox, it could be an indication that your email account has been compromised, and the destination for those emails altered.
• Inconsistent Bank Statements: If your statement shows transactions you don’t recognize, your account may have been compromised.

Protecting Yourself Against Financial Identity Theft

Taking proactive steps is essential for protecting yourself. Here are some preventive measures to strengthen your identity security and keep you from falling victim to financial identity theft:

• Secure Your Personal Information: Safeguard your information by using strong, unique passwords, enabling two-factor authentication, and keeping your devices updated with the latest security patches. Be cautious when sharing personal details online, never share sensitive personal information that can linked to your bank accounts.
• Beware of Phishing Scams: Be cautious of unsolicited emails, social media messages, texts, or calls asking for personal information. Legitimate organizations will never request sensitive details via these channels.
• Monitor Your Accounts: Regularly review bank statements, to catch suspicious activities promptly.
• Strengthen Passwords and Use 2FA: Create strong, unique passwords for each online account and enable two-factor authentication for extra security.
• Use Secure Wi-Fi Networks: Avoid conducting financial transactions on public Wi-Fi networks, which are more vulnerable to hacking attempts.

How Flutterwave Protects You From Identity Theft

At Flutterwave we take your security seriously, providing a robust shield for both buyers and sellers on our platform. Our multi-layered security approach ensures that our customers’ identities and transactions are protected from fraud, fostering trust and security.

• Security for Consumers

To ensure secure transactions, our payment gateway uses advanced encryption protocols, safeguarding customer data from theft during transactions. If customers are paying Flutterwave merchants via card, mobile money, or bank transfer, they can trust that their personal and financial information is protected. We also offer additional fraud protection measures, ensuring that every transaction is secure and unauthorized access is blocked.

• Security for Businesses

For merchants, we implement a thorough Know Your Customer (KYC) process during onboarding. Before operating on our platform, sellers undergo detailed documentation and verification, ensuring that only legitimate businesses are allowed. Beyond onboarding, we continuously monitor transactions to identify suspicious activity, with support from our 24/7 fraud desk to mitigate any potential threats swiftly.

Through these measures, we not only protect buyers from dishonest sellers but also safeguard third parties from having their identities stolen and misused. The combination of live photo evidence and strict identity verification protocols ensures that every user on our platform is who they claim to be. If there’s any discrepancy between the captured data and the provided ID, the individual is denied access, effectively blocking fraudulent attempts to infiltrate our system.

What to do if you suspect that your identity has been stolen?

If you suspect that your identity has been stolen, it’s crucial to act swiftly to minimize damage and protect your finances. Here are some immediate actions you should take to safeguard your information and begin the recovery process. 

1. Contact Financial Institutions: Notify your bank and other financial institutions immediately to report unauthorized transactions.
2. File a Police Report: Contact your local law enforcement agency and file a report detailing the identity theft incident.
3. Freeze Your Card: Consider placing a Post No Debit (PND) or fraud alert on your card to prevent new transactions from being made on your account.

Conclusion

Financial identity theft is a serious threat, but Flutterwave is committed to keeping you safe. Our advanced security technologies and vigilant monitoring processes are designed to protect your identity and financial information. We’re committed to to more investment in our security architecture to keep our platform a secure environment where you can conduct your transactions with confidence. Your safety is our priority, and we will continue to enhance our measures to safeguard your identity.