As account opening continues to transition from physical to digital channels, financial institutions, issuers, lenders, and other organizations must optimize the digital experience of applicants in order to compete. At the same time, fraud is on the rise as criminals have become more successful than ever, thanks to some of the same digital channel benefits enjoyed by consumers: convenience, speed, and ease of use.
With account fraud rising and large amounts of personal information already compromised, financial institutions realize the shortcomings of basic passwords and OTPs and the need for biometric authentication to bolster security and enable a seamless user experience. However, many biometric platforms still use knowledge-based information to enroll customers, which makes it easy for hackers to create new accounts using personal identifying information.
There are many faces of fraud in the insurance market - using stolen identities to obtain a new policy - or just as troubling, an account takeover to make a false claim or change payee information to receive claim funds. And when fraud hits, it hurts everyone in the pool. In fact, according to the Federal Bureau of Investigation (FBI), annual losses related to insurance fraud is approximately $40 billion, costing the average American family $400-$700 in increased premiums each year.
BioCatch works with leading banks around the world and monitors more than 2 billion transactions per month. Join us as we provide a summary of fraudulent activity gathered via our behavioral biometrics platform in 2016, review the latest trends in online fraud and share some insights as to what 2017 will bring.