“New account fraud” is a term used to describe what occurs when a criminal steals someone’s identity and uses it to create new accounts or open new lines of credit, and then uses those accounts to go on a spending spree. Such fraud can leave the victim’s credit score in shambles, not to mention the time and resources spent attempting to undo the damage.
According to industry analysts at Javelin, there were more than 1.5 million new account fraud victims in 2015, resulting in some $2.8 billion in losses. Even more alarming, that number increased by 40 percent in 2016.
In such an environment, many companies are increasingly looking to behavioral biometrics to help stop new account fraud.
How Behavioral Biometrics Can Help
Behavioral biometrics technology is often associated with stopping attacks related to malware, robotic activity, remote account takeover or other types of attacks in which an unauthorized user or process is making changes to a computer. Because individuals have specific, identifiable ways they interact with technology, behavioral biometrics can recognize and flag anomalous behavior that doesn’t fit the recognized pattern.
That approach also enables behavioral biometrics to recognize potential fraudsters in real-time during the account setup process. Just as a legitimate user has behavioral patterns that make them easy-to-identify, fraudsters have behavioral patterns that set them apart from average users. Here are three examples:
Application Fluency. Because fraudsters use compromised identities to repeatedly attack a site, they often display a familiarity and fluency with the site and
Navigational Fluency. Due to the nature of their tasks, fraudsters often use advanced computer skills rarely seen among legitimate users. Fraudsters attack and attempt to comprise hundreds and thousands of accounts. As a result, skills that save time and speed up that process—such as keyboard shortcuts and function keys—may be indicators of fraudulent activity.
Data Fluency. Whereas the average user can rattle off personal details, such as name, phone number, address and credit card information from long-term memory, fraudsters often have to rely on short-term memory which impacts how they input information into a form. This is yet another behavior that sets fraudsters apart from legitimate users.
Experian Partners with BioCatch to Combat New Account Fraud
Illustrating how effective the technology is at combatting new account fraud, Experian—a global leader in credit reporting and marketing services— has integrated BioCatch behavioral biometrics technology into CrossCore, its fraud and identity platform.
As an open platform that allows Experian, and its customers, to easily add security and anti-fraud solutions and services, CrossCore was an ideal platform for biometrics integration. BioCatch’s technology will help Experian flag suspicious applications in real-time by analyzing how the application is being filled out, rather than focusing on what information is being filled out.
“New account fraud, which is looked at as the gateway for hackers, ends up costing businesses and consumers a lot of money and headaches—and it’s only getting worse,” said Eyal Goldwerger, Chief Executive Officer of BioCatch. “We’re excited to be working with Experian to help prevent new account fraud, providing a completely new layer of security using behavioral biometrics by focusing on ‘how’ a user enters information into an application, not ‘what’ information is being entered, in a seamless way that does not add any friction to the application process.”
Behavioral biometrics represents a new way of combatting fraud. Rather than reacting to fraudulent attempts or, worse yet, making customers jump through hoops to prove their legitimacy, behavioral biometrics proactively works in the background to identify fraudsters before they can accomplish their goals. Companies the world over—such as Experian—are recognizing the value of behavioral biometrics in today’s ever-changing world of cyber security. Using this technology can help your company protect its customers, save money and provide the best user experience available.
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