All forecasts predict that online shopping will be the defining trend of the 2020 holiday season. According to a study by Deloitte, e-commerce sales are expected to grow by 25% to 35% this year. In addition, with a resurgence of coronavirus cases expected in the cold months, many consumers are likely to shop from the comfort of their homes. This expected increase in digital commerce is a continued trend toward digital channel usage that we’ve been tracking since the pandemic began.
Account opening fraud is one of the fastest growing cyber threats today. The sheer volume of digital channel usage by consumers brought on by the COVID-19 pandemic has exacerbated the problem and has allowed fraudsters to hide in plain sight. In fact, 85% of financial institutions report experiencing fraud in the account opening process.
Consumer demand for more digital products and services is the driving force behind the rapid digital transformation for many financial institutions. This is especially true for account opening, with 37% of consumers, and more than half of millennials, citing digital channels as their preference for opening a new account.
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.
Mule accounts are the most critical link in the fraud supply chain infrastructure. After all, cybercriminals can’t steal money if they have nowhere to send it. According to Europol, more than 90% of all money mule transactions are directly linked to cybercrime.
New account fraud, also known as application fraud, is rapidly outpacing other forms of cybercrime, making it one of the largest concerns for companies offering digital account openings.