In recent years, Peer to Peer payments have shown a significant increase, passing the $120 billion mark (2017). Currently, one in three American consumers uses P2P apps to make instant payments to friends, relatives, service providers, or anyone they owe money. Since P2P account opening does not require identity verification, it is vulnerable to various types of fraud and threats including malware, social engineering, remote access, SIM swapping, call forwarding and other techniques. Using these techniques, the fraudsters are able to exploit two main points of failure:
Malware infections and Remote Access Trojan (RAT) attacks are on the rise, enabling cyber criminals to take over accounts from afar and automate fraud. Despite traditional fraud detection measures and cybersecurity safeguards, malware and RAT attacks remain prevalent. Undetected malware attacks can result in direct losses to account holders and have a long-term detrimental effect on business and customer confidence.
As account opening continues to transition from physical to digital channels, financial institutions, issuers, lenders, and other organizations must optimize the digital experience of applicants in order to compete. At the same time, fraud is on the rise as criminals have become more successful than ever, thanks to some of the same digital channel benefits enjoyed by consumers: convenience, speed, and ease of use.
In recent years, a growing number of organizations have employed two-factor authentication (2FA) as a primary safeguard mechanism. They all share the notion that requiring a second security layer will be instrumental in reducing data breaches and identity theft. Two-factor authentication is based on the fundamental assumption that at least two out of three authentication factors are used in the process (“something you know, something you have, something you are”). 2FA is not a new security measure, nevertheless, it is in extensive use, despite the growing recognition that it is not so effective.
As account opening continues to transition from physical to digital channels, financial institutions, issuers, lenders, and other organizations must optimize the digital experience of applicants in order to compete. At the same time, fraud is on the rise as criminals have become more successful than ever, thanks to some of the same digital channel benefits enjoyed by consumers: convenience, speed, and ease of use. To achieve the necessary balance between preventing fraud and providing a delightful experience for consumers, an approach to identity proofing that accounts for the channel, product, customer, and threat environment is absolutely critical. But regardless of the approach, inconspicuous solutions — like those based on applicant behavior — have a distinct role to play in how institutions manage the risk of application fraud.
With account fraud rising and large amounts of personal information already compromised, financial institutions realize the shortcomings of basic passwords and OTPs and the need for biometric authentication to bolster security and enable a seamless user experience. However, many biometric platforms still use knowledge-based information to enroll customers, which makes it easy for hackers to create new accounts using personal identifying information.
New account fraud is usually the gateway to many other criminal activities and is a growing concern for businesses that processes transactions online. Behavioral biometrics provides a new dimension to detect this type fraud by recognizing criminal behavior and being able to distinguish those behaviors from those of legitimate applicants, even if all the personal data entered into an online form is valid. Join us to learn how this is done.
There are many faces of fraud in the insurance market - using stolen identities to obtain a new policy - or just as troubling, an account takeover to make a false claim or change payee information to receive claim funds. And when fraud hits, it hurts everyone in the pool. In fact, according to the Federal Bureau of Investigation (FBI), annual losses related to insurance fraud is approximately $40 billion, costing the average American family $400-$700 in increased premiums each year.
The widespread digitization of financial services is causing large-scale and sweeping transformations across various facets of the business, creating new growth opportunities but also new challenges and inherent risk. In the insurance sector, particularly, digital transformation is driven by new competitive threats, ongoing cost pressures, aging technology and increasing regulatory requirements. Put all together, there is a huge opportunity to modernize, to create new business models, acquire customers on new channels and create competitive and compelling customer experiences.
Cyber-psychology is an emerging research program which examines individuals in the context of human–technology interactions. As a developing field, cyber-psychology relates to several psychological phenomena associated with or affected by technological applications and use. Essentially, research topics include human–computer interaction: computer graphics, operating systems, programming languages, communication theory, graphic and industrial design disciplines, linguistics, social sciences, cognitive psychology, and human performance. While some researchers emphasize the computer in computer–human interaction, a defining characteristic of cyber-psychology is that the human takes precedence over the computer.
The global insurance market is a multi-trillion-dollar market worth more than $4.5 trillion in gross insurance premiums (2015). In 2016, the gross insurance in premiums in the U.S reached $2.67 trillion with $1.5 trillion in paid claims.
The BioCatch Analyst Station is a web-based interface that displays the data for one or many sessions and provides summary reports. The portal enables the customer to easily detect and act upon possible fraudulent activity in user accounts. The BioCatch Analyst Station is used for post-session data analysis, typically at the end of each day or whenever required by the administrator.
With the rapid growth in the scope, sophistication, and variety of online fraud and cyber-crime, new approaches are required for fraud detection and user verification. Behavioral biometrics has been getting a lot of attention lately as being able to uniquely address the challenges posed by social engineering, account takeovers and malware. By looking at the way people scroll, type, toggle between fields and use shortcuts, behavioral biometrics can help determine the authenticity of a user, not just which device or password was used to login.
NACHA’s announcement of same-day ACH (Automated Clearing House) payments will benefit both businesses and consumers whose payments are eligible for same-day transaction processing. This is how BioCatch is supporting this change.
Cross-channel fraud is an advanced attack method in which the fraudster steals a user’s credentials and personal information from one channel, in order to commit fraud in an associated channel and/or account. BioCatch has developed effective methods to thwart these attacks.
Digital transformation in banking and retail is rapidly evolving. In this fast-moving environment, where finance and fraud intersect, there are several ramifications for financial institutions and the user experience.
The equation is quite simple: where there is money, there is fraud. As the use of mobile banking grows, so do the threats of hacks, malware and other remote attacks. Traditional means of detecting fraud can take considerable time and resources, sometimes taking weeks to detect or to confirm an incident.
In the digital world - whether mobile payments, e-commerce or online banking – this is much too long. Transactions happen quickly, and any delay can have significant repercussions, both from a consumer confidence perspective and a cost perspective. In the digital world, it seems there is always a choice to make between security and the user experience.
One of the major retailers in Latin America experienced a surge in online fraud and review costs. BioCatch was able to detect new user fraud in real-time, lower the review rates considerably, and provide immediate ROI.
A leading UK bank searched for a cutting-edge technology to authenticate more than 1.5 million users. BioCatch was able to provide a 100% frictionless solution to meet this need.
BioCatch was deployed in a top-5 UK retail bank with over 5 million users. BioCatch demonstrated a fraud detection rate of 95% with a FP rate of less than 1%.
This top-50 US banking group, a leader in big data analytics, has more than 500,000 customers and more than 300 offices around the world. BioCatch was able to reduce friction and fraud for the bank’s end-users.
BioCatch helps a top-5 UK bank to detect remote access Trojan (RAT) attacks in real-time and spot anomalous user interactions.
According to the 2017 Identity Fraud Study released by Javelin Strategy & Research, in 2015, there were more than 1.5 million new account fraud victims that accounted for losses of $2.8 billion. This number increased by 40% in 2016, and there is no reason to believe that this trend is stopping anytime soon. In fact, some statistics show that new account fraud accounts for 20% of all fraud losses.
BioCatch is a cybersecurity company that delivers behavioral biometrics, analyzing human device interactions, to protect users and data. Banks and other enterprises use BioCatch to significantly reduce online fraud and protect against a variety of cyber threats, without compromising the user experience.
Behavioral biometrics is an investment that will save your business a substantial amount of revenue. By ensuring that every session undergoes complete continuous authentication, you will reduce fraud and friction -- which both are costing your company huge amounts of money and potentially losing clientele. BioCatch's Oren Kedem will walk through the incredible ROI that Behavioral Biometrics provides.
BioCatch works with leading banks around the world and monitors more than 2 billion transactions per month. Join us as we provide a summary of fraudulent activity gathered via our behavioral biometrics platform in 2016, review the latest trends in online fraud and share some insights as to what 2017 will bring.
Remote Administration Tools (RATs) have a dual purpose. Their original objective was to allow IT personnel to remotely access computers connected to the network, so they can run troubleshooting or remote maintenance on the PC. Many people use remote access capabilities because it allows them to enter their far-away desktop and control it, just like they were sitting behind the keyboard themselves.
Dyre was one of the most dangerous, stealthiest Trojans of its time. It hit banks worldwide, evading detection and operating in custom mode based on the banks' defenses. Then its operation was disrupted in mid 2015 and it went silent... But now a new menace emerges: the Trickbot Trjoan. With a new set of dirty tricks in their arsenal, the cyber criminals now have a new, highly effective weapon.
As mobile devices eclipse computers and laptops as the preferred method of going online, fraudsters have followed users, porting their modus operandi –account takeover, social engineering, and malware based remote control attacks – to the mobile arena. Mobile has opened up many new ways for users to communicate and connect without being tied to a desk or a power outlet – and at the same time, it has presented hackers with many more opportunities to perpetrate fraud and carry out attacks that cannot be detected with traditional tools used to detect attacks in web sites. As a result, companies need to apply new fraud controls to protect mobile users and enable them to carry out transactions, check bank accounts, make purchases, etc.
Mobile banking fraud has been predicted for years - but in 2016 it moved from a small trickle into an alarming flood.