Behavioral biometrics analyzes a user’s digital physical and cognitive behavior and is most commonly used today as a fraud prevention solution. Behavioral biometrics distinguishes between legitimate users and cybercriminals and identifies people by how they behave and interact online rather than by static information or physical characteristics, like what they know or what they have access to.
As businesses dive deeper into digital initiatives, the need to balance security and usability is more critical than ever. Customers are demanding world-class experiences and have limited patience for complex online interactions and unnecessary friction. At the same time, fraud is on the rise and costlier than ever.
In the last two decades, the use of biometric security applications has catapulted alongside digital innovation. This is due in large part to digital transformation in traditional industries, identity-based functions shifting to mobile applications, and a steep rise in fraud and identity theft in new digital channels.
According to forecasts by Acuity Market Intelligence, 98% of all smart mobile devices in use will be biometrically enabled. Moreover, Accuity’s research has stated that more than 16.7 billion biometric apps will be downloaded annually, and more than 1.37 trillion transactions, that require some level of biometric authentication, will be processed on mobile devices each year.
Behavioral biometrics has evolved profoundly in the last decade. What started as the analysis of user behavior based on clicks, swipes and typing patterns has developed into a technology that relies on deep knowledge of neuroscience and cognitive analysis that ventures into the unchartered areas of the human mind.
The gig economy has exploded, especially in the wake of the COVID-19 pandemic. According to the Bureau of Labor projections, the portion of gig economy workers will increase to 43% in 2020. Among millennials, 40% have identified as participating in the gig economy.
Mobile apps, online banking, P2P payments, and more are delivering the simple and fast online experiences today’s consumers desire from their financial institutions. However, many fraud detection solutions continue to undermine the customer experience, adding unnecessary friction in the quest to reduce account takeover, new account fraud, and social engineering attacks.