We’ve seen many new fraud and authentication techniques and point solution providers enter the market over the past several years, but have we really made any improvement against fraud, particularly in the financial institution space? Apparently not.
Account opening fraud is a rapidly increasing challenge for issuers due to the plethora of identity data available to fraudsters. The 2018 Identity Fraud Study by Javelin Strategy & Research shows that the number of identity fraud victims increased by eight percent in 2017, with the amount stolen totaling US$ 16.8 billion (£13.4 billion).
Account takeover, where a fraudster gains access to a victim’s account, typically leads to unauthorised fraudulent transactions. Account takeover fraud (ATO) is still trending upward, especially in the financial services sector. According to Javelin, existing account takeover fraud tripled in 2018 to 1.5 percent of all US-based consumers.
Some of the top financial institutions employ specific and often expensive point solution providers for device risk, behavioural risk, mobile phone intelligence, social reputation, email reputation, call centre fraud defence, bot and malware detection. And each of these providers typically provides a risk score or a rules-based approach, and a potentially long list of data attributes.
Learn how A.I., and more specifically true machine intelligence, can maximize the value of your existing data signals, reduce cost and minimize latency, while making more accurate risk and fraud decisions.