Consumer demand for more digital products and services is the driving force behind the rapid digital transformation for many financial institutions. This is especially true for account opening, with 37% of consumers, and more than half of millennials, citing digital channels as their preference for opening a new account.
Behavioral biometrics has evolved profoundly in the last decade. What started as the analysis of user behavior based on clicks, swipes and typing patterns has developed into a technology that relies on deep knowledge of neuroscience and cognitive analysis that ventures into the unchartered areas of the human mind.
Improving cyber security ROI while managing risk and providing a seamless customer experience is a balancing act. With the number of hackers and criminal groups targeting financial institutions at unprecedented levels during the pandemic, strong fraud detection solutions are more important than ever.
Mule accounts are the most critical link in the fraud supply chain infrastructure. After all, cybercriminals can’t steal money if they have nowhere to send it. According to Europol, more than 90% of all money mule transactions are directly linked to cybercrime.
Fraudsters thrive on confusion and fear. We saw this unfold during the peak of the COVID-19 pandemic. As financial institutions scrambled to adjust to supporting a remote workforce, customers were also adjusting to moving more business online. In fact, financial institutions saw a 250% increase in digital channel usage on average, noted Julie Conroy, Research Director at Aite Group, in a recent webinar. “This wasn’t just existing customers, but we also saw a lot of net new users come into the fore.”
The role of digital services in our lives has never proven more pivotal than it has in recent months. From banking and shopping to how we work and how our children learn, the most routine of activities we do every day has been completely upended.