Fraud Prevention Experts Examine How
Behavioral Biometrics Can Help Keep Customers Safe and Deliver an
Optimal Customer Experience with Passive Authentication
ATLANTA, April 19,
2023 /PRNewswire/ -- LexisNexis® Risk Solutions
published a white paper produced by Aite-Novarica exploring the
challenges in addressing sophisticated fraud threats following
increased digital adoption and consumers' high expectations for
online transactions.
The white paper, Multifaceted Fraud Attacks: Behavioral
Biometrics as a Defensive Tool, explains that most people are using
person-to-person (P2P) payment platforms more frequently since the
start of the pandemic. However, a consumer survey in the whitepaper
reveals that 10% of U.S. respondents are using the services less
often, along with 9% of UK consumers and 7% in Singapore. Of consumers who had reduced using
P2P services, a significant proportion of consumers in the U.S.
(43%), UK (46%) and Singapore
(35%) changed their behavior due to fraud concerns.
"Fraud executives are deeply concerned about increasing fraud
attacks and the effect it has on consumers and their organization's
reputation when losses occur," said Stephen
Topliss, vice president, fraud and identity strategy,
LexisNexis Risk Solutions. "Businesses need the most
multi-dimensional view available of an identity to make
high-quality decisions. Behavioral biometrics allows businesses to
provide an optimal customer experience by passively authenticating
them and only inserting additional steps into their journey if
there is a higher risk."
Further findings in the white paper show that 48% of fraud
executives ranked consumer scam attacks among their top concerns in
2022 when thinking about transaction control frameworks. In
addition to driving a significant amount of fraud, scams are also
fraught with challenges given that the execution of the scam
requires acts by the true customer for the fraudster to profit.
An increasing number of organizations have begun implementing
behavioral biometrics in their fraud operations. Fraud executives
in North America rank their
satisfaction with behavioral biometric solutions as second only to
the risk engines they use, according to the white paper. Business
users' satisfaction with behavioral biometrics ranked above more
established approaches, including third-party identity
verification, credit bureau scoring and device ownership and
history verification.
"The adoption of behavioral biometrics technology is appealing
from both a fraud prevention and customer experience perspective,"
said Jim Mortensen, strategic
advisor at Aite-Novarica Group. "The capability is attractive as it
authenticates users on a passive basis, in the background, and
requires no active intervention by the customer beyond their normal
use of the app or website."
Behavioral biometrics and related technologies for risk scoring
can help organizations address fraud and authentication challenges.
Behavioral biometrics analyzes how a person interacts with a
device, including attributes such as the angle at which a consumer
holds a mobile phone or tablet, how much pressure they apply to its
screen, surface swipes and directional motion, as well as typing
rhythm and other keyboard patterns. It works completely in the
background without adding unnecessary friction to the consumer's
journey to create a unique profile that can help authenticate
genuine user interactions and flag bad actors and sessions where
legitimate users may be acting under a bad actor's direction.
Financial fraud executives' most common concerns also include
various types of losses because of application fraud, with bad
checks, mule activity and synthetic identities all named among the
top two worries by 22% of executives. Fraud investigators can find
it difficult to identify synthetic identities because they may
appear similar to consumers who are new to the country or to
credit. A multi-dimensional view of applicants helps fraud
executives detect suspicious identities and make better informed
decisions.
A multi-layered set of risk solutions, including behavioral
biometrics tools such as LexisNexis® BehavioSec®, enhances an
organization's ability to detect scams by identifying distinct
behavioral patterns. LexisNexis BehavioSec provides matching scores
that indicate how likely it is that behavior is aligned with the
genuine consumer or related to unusual behavior and coaching that
indicates a scam.
Download the white paper Multifaceted Fraud Attacks: Behavioral
Biometrics as a Defensive Tool by Aite-Novarica.
Methodology
The white paper was informed by
Aite-Novarica Group's ongoing industry research on financial
service industry trends related to fraud threat vectors and fraud
detection and prevention frameworks. This research also includes
insights from surveys of industry fraud executives and quantitative
studies of consumers' fraud experience and mitigation efforts. It
is further augmented by interviews with solution providers about
topics that are top of mind to their prospective buyers and direct
conversations with fraud and security professionals fighting to
protect their financial services firms.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced
analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around
the globe. We provide data and technology solutions for a wide
range of industries including insurance, financial services,
healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information-based analytics and decision tools for
professional and business customers. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Ade O'Connor
+44 78 9091 8264
ade.o'connor@lexisnexisrisk.com
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SOURCE LexisNexis Risk Solutions