You have probably heard of Behavioral Biometrics and think the technology sounds cool...but can it really save you money? The answer is yes -- and it can improve your customer experience as well.
Before going a bit more in depth about the ROI that Behavioral Biometrics provides, it is important to remember that most fraud is occurring within authenticated sessions. Bad guys that can’t get beyond an authenticated session are already out of business. Every worthwhile place to try hack into online has at least a simple password authentication necessary to protect their users.
Behavioral Biometrics can save you money by focusing on the 3 Fs.
The Three Fs
- Fraud - This is the most obvious F. If you are reading this blog, you know by now that BioCatch is a solution to protect against fraud, which is currently used by banks and enterprises worldwide. Protecting you from fraud saves your dollars from ending up in fraudsters’ pockets.
- Friction - There are many solutions for reducing fraud other than Behavioral Biometrics. The issue is that they create friction. This disrupts the user experience - often driving users away and making them consider competitors. Also many times there is an issue with other solutions that results in user failure. For instance, if a user is trying to take part in two-factor authentication, his phone may be dead or he didn’t receive the text.
- Functionality - Adding more functionality will often increase friction for the user. It will open up new areas that bad guys can potentially gain access to and thus make it necessary to increase safety measures, increasing friction and harming the user experience. Since Behavioral Biometrics is passive and continuously authenticates users, it enables the addition of new features, while maintaining a secure environment.
By the Numbers
According to Experian, 1 in 10 applicants for a loan or credit card may actually be an imposter using breached data or stolen credentials and 30% of online customers are interrupted to catch fraud.
These “interruptions” come in the form of escalations, most commonly with some form of step-up or two-factor authentication. However, 15% of users fail to authenticate. They may provide the wrong phone number, have their phone turned off or forget who they put as their favorite high school teacher.
Another common way to do this extra authentication is to have a call center call the person. On average, in the US each of these calls cost about $4.00 per call. If the person provided the wrong phone number or doesn’t answer their phone, that is $4.00 per failure.
BioCatch recently released an ROI calculator that allows banks and other enterprises to plug in various assumptions to ascertain a true projection for the cost-savings associated with adopting its behavioral biometrics technology. To learn more, contact us or access our latest webinar.