Getting Serious About Digital Identity & Fraud

Mar. 12, 2020 | by BioCatch

According to Experian's latest Global Identity and Fraud Report, 95% of businesses have “high confidence in their ability to identify and re-recognize their customers at every interaction.” Yet at the same time, 57% of businesses surveyed reported higher losses associated with account opening and account takeover fraud.

The numbers simply don’t add up, and the current fraud situation highlights this misplaced confidence. In 2018 alone, $3.4 billion was lost to account opening fraud, making it one of the most expensive forms of identity fraud. Not only that, 40% of consumers worldwide have experienced a fraudulent incident online.

As customer identity continues to be compromised, eroded trust and negative user experiences follow. What’s the way forward?

Getting Serious About Fraud Detection

Today’s businesses must be able to accurately and confidently identify users at each and every moment of an online session to get a handle on skyrocketing fraud levels. Many organizations are struggling to deploy the right layers of control to meet their goals. The result is a negative customer experience, false positives, and heightened operational costs as fraud teams attempt to piece together solutions for each new issue. 

The bottom line is that fraud solutions are treating customers like criminals, and that needs to change. When businesses can align fraud detection with customer experience, the potential to delight and deliver seamless experiences is endless.

Taking Action on Advanced Identity Tools

According to the Experian survey, 84% of businesses believe if they can better identify customers, then they will more easily spot fraud. But many organizations are in a holding pattern, waiting to adopt new tools until their value is proven. The game-changing solutions are those that can passively monitor a user’s activity in an online session to detect genuine users versus criminals — from the very first interaction with a business through every interaction thereafter.

Behavioral Biometrics is the solution to get the job done. The technology leverages artificial intelligence (AI) techniques, principally machine learning, to analyze the way a person interacts with devices and online applications to help prevent identity theft and fraud in a way that does not disrupt the user experience.

In particular, BioCatch makes this possible through:

  • Continuous Protection: Our platform monitors the complete account lifecycle, from account opening and then throughout a session from login to logout, detecting even the most subtle changes in behavior to uncover sophisticated attacks.
  • Actionable Intelligence: BioCatch empowers fraud teams by offering visibility into attacks, allowing them to decide on an appropriate course of action. Should the transaction be declined, approved, or require step-up authentication? 
  • Criminal and User Profiling: Unlike other solutions, BioCatch profiles both criminal and genuine activity to provide highly-accurate detection of account opening fraud, account takeover fraud, and social engineering voice scams.

Already behavioral biometrics has brought about significant success stories. BioCatch’s unique approach is deployed at leading financial institutions, insurance companies, and credit card issuers. In one case, Royal Bank of Scotland was able to prevent a fraudulent seven-figure transfer in real-time using BioCatch’s solution. Other customers report over 10x ROI after deploying behavioral biometrics.

Fraud detection and monitoring is not only about catching fraudsters, it's also about how businesses treat their customers — and we can do better. Learn more about how BioCatch creates frictionless experiences for end users.

Topics: fraud detection