Why IoT Naturally Deters Fraudulent Acts

Smart WatchWorldwide, high-IQ sensors, which detect all kinds of patterns from facial recognition to improved accuracy of speed limit cameras, are gradually encapsulating the system into an interconnected neural network.

On a daily basis, streams of exponentially expounding data are being transmitted to and fro, begging the question of how long the free information exchange will last.

In response, the Internet of Things (IoT), which is predicted to take the precedent as an anti-fraud tool, aims to stop criminal acts before they cause any damage.

The Era of Non-Censure

According to the industry report by Gartner, it is expected that at least 6.4 billion devices are interconnected with each other, and this means an increased risk of hacks and glitches.

The IoT in its infancy stages has the potential risk of breeding exploitable granular data and documentation, but can at the same time stop them.

Since the technology behind the IoT’s interconnectivity is traditionally open at both ends, the users and insurers will be able to detect fraudulent activities and discourage any scamming capabilities. When a suspect is named, it will only be a matter of time before the evidence surfaces because every move done via IoT can be ultimately tracked.

From Preemption to Effective Intervention

Apart from the ability to successfully maim and prove a suspect’s fraudulent activities, the IoT can prevent such acts from ever occurring. Pioneer adoption of sensor-embedded work clothes on job sites will undoubtedly reduce the risk of employees faking an injury claim.

While there’s always a risk of technological compromise through manipulation, extrapolation, and the invention of false data, the majority of liable frauds taking advantage of technology will not go undetected anymore.

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Top IoT Anti-Crime Devices

According to Property 360, “There are new technologies that will assist in the fraud battle, making it harder for fraudsters to fake information for claims and lawsuits.” Some of the prevalent technology already in effect are:

  • Telematics: vehicles equipped with high-speed internet and assisted sensors, otherwise known as driverless cars. Through self-driving cars, disputes regarding accidents will be explained faster and more coherently by quickly identifying vital information such as crash location, date, time, speed, and direction.
  • Wearables: clothing apparels equipped with body sensors will unilaterally reveal the nature of injuries sustained in the workplace. Other wearable tech like smart watches and implantable RFID chips will be also effective in tracking employee movements and productivity rate.
  • Drones: the versatile flight and maneuvering capability of drones makes it a desirable tool for determining natural catastrophe effects against property insurance claims. Drones can effectively gather and analyze real-time data by hovering directly over the property of a claimant.
  • Dashcams: by incorporating dashcams to private vehicles, the authorities and insurance companies will have a better view on crash injuries and accidents. This will be highly effective in judging who had the right of way and who wrongfully misjudged a turn leading to the accident.

The present challenge to the full-integration of the IoT against fraudulent activities and other criminal acts require forward-thinking above everything else.

Collectively, anti-fraudulent security should come from an enterprise-wide effort because the integration of IoT systems would come from them.