GUARDIANS AT THE GATE – VULNERABILITY AND FRAUD IN THE DIGITAL DELIVERY CHAIN NIRANJAN GIDWANI
Banking, cards, and online fraud are rapidly rising due to
a combination of technological advancement,
significant
data exposure throughout the entire delivery chains,
outsourcing practices, and the economic instability
affecting both the workforce and digital environments.
The fragmentation and sheer number of participants in
online buying and delivery—from e-commerce sites to
outsourced riders - have made personal data widely
accessible and therefore vulnerable.
Why Online and Banking Fraud Is Rising
Rapid digitalization, global economic uncertainty, and
evolving criminal methods are main contributors to rising
fraud in digital payments and banking. Attackers exploit
weaknesses in mobile banking, online transactions, and
social engineering, and even sophisticated AI-generated
deceptions. As fraudsters become more advanced, even
systems designed for consumer protection can be
targeted and bypassed.
How Many People Access Customer Data
In today's e-commerce and services ecosystems, massive
data flows are integral to operations - from website
managers to third-party logistics and local delivery riders.
Each step involves access to names, mobile numbers, and
addresses. Outsourced riders, property brokers,
outsourced bank and other customer services, and
intermediary agents often handle sensitive information
without strict supervision, creating risk points where data
can be illicitly sold to augment income. Service agents in
banks also routinely access full customer profiles for
legitimate business processes, but sometimes with
inadequate internal controls, creating vulnerability for
misuse or internal fraud.
Information Sharing and Data Selling
Many property brokers and agents exchange customer
lists, sharing home addresses and contact numbers to
close deals or improve service efficiency. In supply
chains, information about buyers is passed down to
delivery agencies and riders. The economic pressure on
frontline workers - especially gig and delivery staff -
means that some resort to selling personal data for a
small fee, fueling a black market for sensitive
information.
Courier and delivery agents hold direct access to
personally identifiable information through package
labels - names, home addresses, and mobile numbers -
that can be misused or traded. For example, some
delivery agents might exploit this access by selling
customer information to local fraud rings or
telemarketers who use it for unsolicited selling or scams.
There have been cases where fraudulent agents
impersonated legitimate couriers, contacting recipients
with fake delivery failure notices to extract payment for
“redelivery fees” or customs taxes. These scams often
involve coercing customers into sharing sensitive
payment details over calls or links, exploiting trust in the
delivery process.
Courier companies or their agents could potentially open
packages containing new ATM or credit cards, steal
information, and reseal the packages to appear original.
This risk exists because the physical handling of sensitive
shipments like bank cards or cheque books requires
access to the package, and unscrupulous insiders could
exploit this access. There have been reported cases
where fraudsters within courier or logistics companies
tampered with packages to either steal cards or skim
information to facilitate later fraudulent transactions.
How Authorities Can Create Stringent Systems
Regulatory bodies across major markets recognize these
risks and are tightening controls through comprehensive
data protection laws and cybersecurity standards. Global
PIPL (China) mandate limited data collection, strict
disclosure of data handling practices, and penalties for
breaches or unlawful transfers. Key regulatory strategies
include:
Data minimization: Only necessary data for
transaction completion to be collected.
Mandatory encryption: All sensitive data, including
within supply chains, should be protected with
strong encryption protocols.
Controlled access: Real-time monitoring, access
controls, and "Zero Trust" architecture to restrict
who can see data.
Third-party compliance: Vendors and partners must
meet the same cybersecurity standards as core
organizations.
Breach notification: Prompt disclosure to affected
individuals for swift mitigation of harm.
Protecting Customer Data in Practice
Leading organizations are adopting multi-layered
security, combining AI-driven fraud detection, strict
employee permissions, encrypted communication, and
continual staff training. Anti-fraud technologies monitor
transactions for anomalies, preventing push payments
and unauthorized data transfers in real-time. Supply
chain actors increasingly use standardized contracts and
compliance audits to ensure no weak links in data
protection.
The Future and Associated Risks
Technological progress comes with disruption, as
automation and AI reduce jobs, sometimes leaving
displaced workers with access to valuable data and
motive for misusing it. The continual advancement in
fraud techniques, including AI-powered forgeries, will
challenge systems—and only constant vigilance,
regulatory updating, and ethical business practices can
counter this.
While risks increase, industry and regulators are
collaborating to defend consumer privacy and uphold
integrity - even as delivery chains become more complex
and connected. Investment in robust cybersecurity,
vigilance at every step of the value chain, and stringent
enforcement of data privacy laws can create a safer
digital world.
In the online world, security cannot be considered as a
product, but a stringently designed process frequently
re-tweaked.
