BROOKFIELD, Wis.—Financial institutions can enhance their ability to detect and prevent account takeover fraud with a new solution Fiserv is calling a “first-of-its-kind.”
Rather than delivering traditional point-in-time snapshots of customer interactions, AuthHub from Fiserv updates customer profiles dynamically as information changes and more data is collected, providing a reliable 360-degree view of customer behavior across all payment types and channels, the company stated.
“No two customer journeys are the same. With a uniquely broad and deep view across all financial institution channels, Fiserv builds up a picture of what is normal or unusual for that customer so banks and credit unions are better equipped to approve or deny a transaction as specific actions are placed into context,” said Patrick Davie, head of banking fraud at Fiserv. “This more informed decisioning mitigates fraud impact and significantly improves the customer experience.”
In seeking to create a comprehensive view of the customer journey to determine what is typical behavior for that individual, Fiserv said AuthHub generates a recommendation for authentication based on the answers to questions such as:
- How many times did the user attempt to login/call in this channel?
- Is the same vector (e.g. email address) accessing multiple cards/accounts?
- What action was attempted/taken (PIN change, inquiry, phone number change, etc.)?
- How many authentication failures have been received?
- Was the vector recently changed?
Fastest Growing Form of Fraud
According to Fiserv, account takeover has been identified by multiple researchers as the fastest growing form of fraud, in part due to the rapid increase of digital transactions and the number of people interacting with financial institutions online for the first time.
Account takeover losses have increased 90% since 2020 to $11.4 billion in 2021, according to the Javelin Strategy & Research 2022 “Identity Fraud Study: The Virtual Battleground,” representing about one-quarter of all identity fraud losses last year, Fiserv explained.
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