Fraud has reached record levels over the past year amid unprecedented digital engagement, with every online interaction giving bad actors the opportunity to impersonate legitimate customers and access their personal funds or valuable data. The Federal Trade Commission (FTC) received over 2.2 million reports of attempted fraud last year, representing losses totaling $ 3.3 billion.
Companies scramble for robust customer authentication methods and behaviorreal analysis tools appear to be some of the most promising options. These systems are capable not only of stopping fraud attempts, but also of operating completely behind the scenes, as they only examine information that customers are already required to enter. They can also dramatically reduce false positives, a major concern for anti-fraud teams, especially as a third of consumers would. switch companies after a single negative experience such as a false accusation of fraud.
May / June Monetize Digital Intent Tracker®: Using Behavior as a Service to Drive Revenue Growth explores the latest developments in the world of behavioral analysis, including the applications of these systems in fraud prevention, how they work to reduce false positives, and how FinTechs are exploiting them in their loan application processes.
Developments in the world of behavioral analysis
The inconvenientsThe increased dependence of consumers on digital channels has led to a strong get up in fraud during the past year. Experts attribute the increase to various causes, with 79% of UK banks saying remote working models had a major impact on the effectiveness of their anti-fraud strategies and 49% saying it was difficult to manage. multiple fraud prevention systems simultaneously. Some companies attempt to mitigate the threat by using comprehensive systems that simplify fraud prevention workflows, with some of these systems leveraging behavioral analysis to detect fraud and money laundering.
Authentication methods are also evolving rapidly, with customers beginning to avoid passwords due to their drawbacks and vulnerability to credential stuffing. A recent investigation found that consumers around the world failed to rank passwords among their three most secure authentication methods for the first time in four years. Instead, they listed biometrics, PINs sent to their mobile devices, and behavioral analysis as their preferred options. The latter method has become preferred among consumers in part because of their concerns about data privacy, as behavioral analysis systems do not collect any data and instead assess customer behaviors and interactions at the surface level.
Behavior-as-a-service provider Neuro-ID and identity decision platform Alloy recentis lying in partnership on one of these behavioral analysis systems, by deploying a fraud detection platform for banks and other financial institutions (FIs). The system analyzes several variables to determine the intentions of potential customers and assesses the likelihood that they are bad actors, scrutinizing details such as their typing speed and their propensity to misspell crucial information like their names. The solution is also unobtrusive, which helps it avoid creating undue friction with customers by relying on information that customers are already required to enter rather than stacking authentication fields for codes. security or questions.
To learn more about these and other behavioral analysis news, download this month’s Tracker.
OppFi on Harnessing the Power of Behavior Analysis During the Loan Application Process
Applying for a loan can be complicated for people with low credit scores or low incomes, as traditional loan offers focus almost exclusively on credit scores. Behavioral analysis has the potential to process the demands of these consumers safely and quickly without excluding those who are otherwise financially strong. In this month’s report, PYMNTS spoke with Jared kaplan, CEO of OppFi, on how FinTech uses behavioral analysis to examine customer data entry methods and determine their legitimacy and credit risk. Check out the highlights of the interview below.
Deepening: How Behavioral Analytics Can Reduce False Positives While Keeping Customer Authentication Smooth
Customer onboarding is a perilous balancing act for banks and businesses, which are responsible for balancing security and transparency. Customer friction can have dire consequences if it results in abandonment or, even worse, if customers are wrongly identified as fraudsters. This month’s Deep Dive examines how behavioral analytics can help businesses better balance digital security and customer convenience.
About the tracker
the Monetize Digital Intent Tracker®: Using Behavior as a Service to Drive Revenue Growth, a PYMNTS and Neuro-ID collaboration, is the go-to monthly resource for updates on trends and changes in behavioral analysis.