Balancing fraud risk with the cost of information security investments is one of the toughest challenges chief financial officers (CFO) face. CFOs need to invest in technology that stops fraudsters and protects company assets, but budget challenges don’t allow for unfettered spending.
Leif Easterson, former CFO of Information Security and Risk Management at Citigroup, has been there. In this BioCatch webinar, Leif draws on his experience at Citigroup to explain how CFOs can capture their total enterprise cyber security ROI and secure the funding they need.
Listen in to the full webinar discussion to learn how much cyber fraud really costs financial institutions or read on for the key takeaways.
Banking Cybersecurity Trends that Keep CFOs Up at Night
With the number of cyber incidents targeting businesses nearly doubling between 2016 and 2017, strong banking cybersecurity solutions are more important than ever. Three trends in particular are causing a wave of cyber fraud at financial institutions.
In the digital world, business moves faster than ever and transactions are completed in seconds. Traditional security solutions aren’t able to keep pace with the speed of today’s cybercriminals. Because most fraud takes place online, embracing digital transformation leads to more cyber exposure. Without adequate security measures in place, companies are vulnerable to attack.
Social engineers prey on human trust to bypass security solutions. Due to ongoing leaks of PII, cybercriminals are crafting highly-effective phishing campaigns that trick users into handing over personal information or executing fraudulent transactions. Social engineers also target specific businesses, including banks, with their schemes, often via convincing email messages.
Synthetic Identity Fraud
Synthetic identity fraud costs companies billions and is hugely responsible for the rise in account takeover fraud. By combining stolen personal data with fabricated information, fraudsters create entirely new identities that get past security controls.
How CFOs Can Provide Immediate Cybersecurity ROI with Behavioral Biometrics
Not only does fraud have a direct cost in dollars lost, it also results in operational expenses and lost business due to frustrated customers. All these factors come into play when calculating cyber security ROI.
BioCatch’s behavioral biometrics technology eliminates direct fraud losses and reduces indirect losses caused by friction. Behavioral biometrics do not rely on PII to authenticate users. Rather, the technology analyzes human-device interactions to protect users and data. The biggest differentiator from other fraud prevention solutions is that behavioral biometrics secures sessions from log in to log out. If a fraudster beats the login process, behavioral biometrics will detect human or non-human cyber threats within a session in real-time.
Already, banks have seen tens of millions in savings by implementing behavioral biometrics. Behavioral biometrics brings about cost savings by:
- Stopping significantly more cases of fraud in real-time
- Reducing false positives by flagging fewer legitimate sessions and transactions as fraudulent
- Reducing the number of customers lost over a bad experience with fraud
- Reducing the need for step-authentications that leave users frustrated
- Reducing customer service costs for handling fraud cases
Actual fraud costs are often much less that friction-related costs. Replacing passwords and two-factor authentication with behavioral biometrics makes for a seamless customer experience. By keeping customers happy, financial institutions increase customer retention and growth and gain an edge on their competitors.How much can you save by using behavioral biometrics to reduce fraud and friction? BioCatch’s ROI calculator uses real data about your organization to help you choose the best fraud prevention solution and demonstrate to company leaders the value of modern information security investments. Contact us to learn more.