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What is digital fraud? Learn the main precautions for businesses

In recent years, digital fraud has become a nightmare for companies of all sizes and industries. In 2024, the number of online scams increased by nearly 50%, according to a survey by Veja magazine. This increase especially impacted sectors such as education and healthcare, which are now exposed to digital risks that are becoming more and more frequent.

Due to accelerated digitalization, the sophistication of techniques used by cybercriminals has increased. This has raised the risk of access to sensitive data, diversion of resources, and damage to corporate reputations. For this reason, companies and professionals need to stay alert to threats and adopt anti-fraud solutions in order to strengthen online security.

In this article, you’ll learn how biometrics reinforce organizational protection, reduce the chances of fraud, and provide a safer experience for customers.

Keep reading!

What are digital frauds

Digital fraud encompasses virtual crimes that use technological resources to deceive individuals or companies. These crimes occur through emails, social networks, messaging apps, and fake websites, exploiting social engineering techniques and system breaches.

Fraudsters, aiming to capture sensitive data, obtain financial assets, or access restricted systems, impersonate recognized institutions such as banks, suppliers, and business partners. They then deceive employees and induce actions that favor the scam. These schemes increase the risk of information leaks, financial losses, and exposure of compromised credentials across different market sectors.

Most common types of digital frauds in companies

Among the most frequent fraudulent practices in corporate environments, the following stand out:

1. Phishing

This consists of sending carefully crafted fake emails or messages, with the intention of simulating legitimate communications. Scammers replicate logos, colors, fonts, and other visual elements present in official communications, creating content that is almost identical to the originals. With this level of detail, they induce recipients to click on malicious links and provide confidential information.

➡️ Example:

A finance professional receives a message apparently sent by a partner bank. The content highlights the urgency of updating registration data and presents a link for “immediate regularization.” By accessing the link and filling out the form, the employee, without realizing it, hands over confidential data directly to the fraudsters, who then gain access to bank accounts and internal systems.

2. Ransomware

This refers to the spread of malicious software capable of encrypting company files after installation. After the attack, criminals demand payment as a condition for restoring access to the data. This type of action causes operational interruptions, loss of important information, and generates high costs during the recovery of affected systems.

➡️ Example:

A customer service team tries to access contracts, tracking spreadsheets, and operational documents to continue daily tasks. Suddenly, all files become inaccessible. A message appears on the screen stating that the data has been encrypted and will only be released upon payment in cryptocurrency. Meanwhile, operations remain halted, causing financial losses and concern among employees.

3. Payment and invoice fraud

This is characterized by the alteration of billing documents, such as bank slips or invoices, with the intention of diverting funds during the payment process. Scammers modify payment information and divert the resources to fake accounts, while the person responsible does not notice any irregularity.

➡️ Example:

The accounts payable department receives an invoice from a known supplier, with the correct amount and due date. The document appears legitimate, but the banking details were altered by fraudsters after intercepting the communication. The payment is made as usual, but the amount is not credited to the real supplier, resulting in losses and delays in negotiations.

4. Data theft and espionage

This involves accessing confidential company data, such as ongoing projects, client lists, and contracts. Attackers use different strategies, including system breaches, installation of spyware, and social engineering techniques, in order to capture strategic information.

➡️ Example:

During a business trip, an employee connects the company laptop to a public Wi-Fi network. Without the user noticing, spyware is installed, allowing remote access to documents and sensitive data. This information can be sold to competitors or used to harm important negotiations.

5. Corporate card cloning

This consists of capturing business credit card data in order to make unauthorized purchases. Fraudsters obtain this information through compromised websites, card cloning devices at establishments, or attacks on payment platforms.

➡️ Example:

The finance department identifies transactions in different cities or even in other countries, all made with the corporate card. The problem is only discovered when employees analyze the detailed statement, by which time part of the negative impact has already occurred and the dispute process needs to be started.

Consequences of digital frauds for companies

The consequences of digital fraud range from financial losses to damage to the reputation of organizations. In many cases, the impacts can be irreversible. Here are some examples:

  • Financial losses: fraudulent transactions, improper payments, and contract violations generate direct losses of money and company assets. This makes it difficult to maintain operations and compromises future investments.
  • Damage to reputation and trust: involvement in fraud — even as a victim — harms the company’s image and drives customers away. The loss of credibility affects business performance and hinders the acquisition of new business.
  • Costs related to incident response: the need for investigation, audits, and communication with stakeholders generates additional expenses and demands time from teams.
  • Operational impacts: the interruption of operations paralyzes systems, prevents the fulfillment of goals and contracts, and harms relationships with suppliers. This situation can lead to debt, legal complications, and difficulties in resuming normal activities.
  • Regulatory pressure and governance: companies that are victims of attacks need to prove compliance with regulations, such as General Data Protection Law (GDPL). The absence of a contingency plan undermines reputation and trust with the market and regulatory bodies.

Each of these factors can trigger a chain of consequences, making recovery more difficult and costly. Therefore, investing in prevention, governance, and rapid incident response is an effective measure to protect business operations.

What is the best way to fight fraud

By now, you have seen how much fraud can compromise the operations and reputation of your organization. So, the best way to deal with online scams is to invest in team training, well-defined processes, and the right technology. The first step is to promote ongoing education and training for employees. Information security awareness programs, threat identification courses, and guidance on digital best practices strengthen the defense of any organization.

Next, it is recommended to establish clear information security policies. Defining rules about device usage, passwords, system access, and data sharing contributes to a safer environment and reduces gaps that can be exploited by criminals.

Another relevant point involves the use of outdated technology, which is vulnerable to skilled attackers. Fraud has evolved, so the methods of fighting it also need to keep up. There is no point in patching up an old system; the recommended approach is to modernize it intelligently, without creating complications for internal teams and customers. In this context, BioPass ID, through robust APIs, offers an effective solution. By connecting systems to advanced biometric identification services, such as facial recognition and fingerprint scanning, the platform strengthens protection against fraud, improves user experience, and ensures full compliance with GDPL.

Why modernizing systems is important to combat digital frauds

Modernizing systems doesn’t necessarily mean large investments or unattainable technological revolutions. With biometric APIs, any company — small, medium, or large — can strengthen security in a practical way without complicating the customer experience.

In this article, we discussed the growth of digital fraud and the impacts caused to companies of different sizes and sectors. We also showed how biometric APIs enhance the security of organizations and the trust of customers. Digital scams are already a reality and are evolving rapidly. To reduce the risks of exposure and information leaks, consider implementing BioPass ID.

Did you enjoy the content? Then also check out what a multibiometric API is and how this technology works.

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