The role of digital services in our lives has never proven more pivotal than it has this year as a result of the global pandemic. From banking and shopping to how we work and learn, the most routine activities we do every day have been completely upended.
All forecasts predict that online shopping will be the defining trend of the 2020 holiday season. According to a study by Deloitte, e-commerce sales are expected to grow by 25% to 35% this year. In addition, with a resurgence of coronavirus cases expected in the cold months, many consumers are likely to shop from the comfort of their homes. This expected increase in digital commerce is a continued trend toward digital channel usage that we’ve been tracking since the pandemic began.
Account opening fraud is one of the fastest growing cyber threats today. The sheer volume of digital channel usage by consumers brought on by the COVID-19 pandemic has exacerbated the problem and has allowed fraudsters to hide in plain sight. In fact, 85% of financial institutions report experiencing fraud in the account opening process.
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.