Securing Omnichannel Experiences from Cross-Channel Fraud

Sep. 11, 2018 | by BioCatch

Cybercriminals never stop improving their attack methods. Cross-channel fraud is one of their latest strategies, and it’s causing trouble for financial institutions and online merchants who are embracing the omnichannel payments revolution.

Omnichannel simply means “multiple channels,” and it’s a strategy for letting consumers interact with a company when and how they want. Businesses, for the most part, have got omnichannel down — or at least why it’s important.

In the digital transformation rush, financial institutions and online merchants have added new ways for customers to complete transactions digitally, but fraud prevention solutions haven’t kept up. Cybercriminals are taking advantage.

The Growth of Cross-Channel Fraud

Leading banks and retailers offer their customers multiple ways to settle a bill or complete a transaction. These “channels” include in-person, on a mobile device, online via a desktop computer, and over the phone to a call center. The options are convenient for customers, but enterprising cybercriminals have found ways to make omnichannel payments a nightmare to secure for today’s businesses.

With cross-channel fraud, a fraudster steals personal information about a user from one channel, and then uses that information to commit fraud in another. Here’s an example.

Fraudsters frequently use social engineering scams to trick a user into granting access to an online account, like a banking account. Once in, the fraudster has easy access to a user’s connected credit card information. Fraudsters copy the user’s credit card number and its expiration date. From there, it’s a simple next step to card-not-present fraud. With basic credit card information, fraudsters can make purchases online, racking up thousands in charges.

With omnichannel payments becoming the new and much needed norm to give consumers the user experiences they want, financial institutions and online merchants need to be able to secure against cross-channel fraud.

Bringing Greater Security to Omnichannel Payments

Most fraud detection tools used by banks and online retailers focus on securing only one channel. They don’t monitor for fraud across channels in real-time. Your slick new mobile app makes authentication frictionless while your desktop solutions remain clunky and outdated, relying on passwords and 2FA.

A disjointed approach makes it harder to spot cross-channel fraud. What organizations need is a centralized way to track fraud across channels. Behavioral biometrics provides that.

Removes friction from the user experience

The appeal of omnichannel payments is the ability to provide customers the ultimate in convenience. They can pay when and how they want. A different authentication experience on different channels can make customers suspicious and question a company’s overall security. If customers are unsure, they may abandon in favor of another channel, or simply not come back at all. The best fraud detection solutions extend across channels, consistently tracking customers so transactions are completed simply and securely every time.

Lowers the rate of false positives

When you can track a customer’s activity from channel to channel, the result is fewer declined transactions. Behavioral biometrics use machine learning to build profiles on users based on their interactions with a device. These user profiles transfer from digital channel to digital channel, continuously authenticating users based on their behavior. Our solution then generates a risk score based on this real-time analysis that can be fed into other channels, like a call center. Companies can de-escalate situations based on the risk scoring, resulting in fewer false positives.

Catches cross-channel fraud in real-time

With behavioral biometrics, companies can detect fraud that starts in one channel and moves into another in real-time. With standalone fraud detection solutions, it’s much harder, if not impossible, to connect risky behavior in one session to suspicious behavior in another. Fraud also happens quickly. A centralized solution constantly monitors sessions across all channels to catch fraud in the moment and alert companies to cross-channel fraud as it takes place.

Behavioral biometrics  give banks and online retailers the power to secure transactions across all channels while also building consumer trust in your omnichannel payment solutions.

Learn more about solutions for cross-channel fraud and how to offer better online experiences that keep users protected.

Topics: Fraud Prevention, fraud detection