ALPHARETTA, Ga.– A new white paper offers some insights into the challenges of addressing sophisticated fraud threats following increased digital adoption and consumers’ high expectations for online transactions.
LexisNexis Risk Solutions published the white paper, produced by Aite-Novarica, titled “Multifaceted Fraud Attacks: Behavioral Biometrics as a Defensive Tool.”
Among the findings:
- Most people are using person-to-person (P2P) payment platforms more frequently since the start of the pandemic. However, a consumer survey 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.
- 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.
‘Deeply Concerned’
"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, in a statement accompanying release of the new report. "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."
Among the other findings in the white paper:
- 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,” the company said.
- 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, LexisNexis reported. 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, it added.
- 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,” LexisNexis said. “A multi-dimensional view of applicants helps fraud executives detect suspicious identities and make better informed decisions”
The white paper can be found here: Multifaceted Fraud Attacks: Behavioral Biometrics as a Defensive Tool