Financial fraud is on the rise and shows little sign of slowing down. New fraud opportunities are constantly being created by the rapid increase of digital interactions and the influx of users connecting online with merchants and financial institutions.
Identity theft and losses from account takeover continue to plague consumers and financial institutions as fraud schemes become more sophisticated. The results of a recent survey by Aite-Novarica Group, “U.S. Identity Theft: Adapting and Evolving,” showed that younger consumers, especially, continue to be victimized by identity theft. And a report by Javelin Strategy & Research, “Rising Threats: How Identity Fraud Affects the Digital Channel,” revealed that account takeover is now an $11 billion problem and the fastest growing form of fraud. This is due, in large part, to the rapid increase of digital interactions for everything from credit card transactions to P2P payments and rewards points.
Account takeover can be difficult to detect. Unlike card fraud, where the accountholder might quickly notice suspicious purchases and charges, an account-takeover attack can go undetected for an extended period, while criminals change login and contact information to delay the time it takes for the real accountholder to realize they were compromised.
What's a financial institution to do in the face of this growing threat? When fraud occurs, financial losses must be addressed, and recovery attempts are costly and time consuming. Consumer confidence declines – but requiring multiple and repeated authentication steps adds more friction to online interactions.
The best defense is to implement a multilayered, comprehensive plan, including:
Stronger authentication requires advanced technology that can pinpoint anomalies in consumer behaviors by understanding their patterns. No two financial consumers act the same way. People do different things, in different places, in different ways. And whenever or wherever consumers transact, financial institutions need to accurately verify who is accessing accounts, making purchases or calling in. These unique patterns can help financial institutions detect and proactively prevent fraud.
That’s why Fiserv has introduced AuthHub, an intelligent data engine that connects Fiserv-managed consumer financial channels and touchpoints. Combined intelligence gathered from debit and credit card transactions, online and mobile banking activity, ACH transactions, ATM interactions, Zelle® transactions, bill pay activity, wires activity, card tokenization, rewards programs and contact center interactions creates an in-depth profile of an individual’s financial services behaviors and patterns to better identify fraudulent activity before it occurs.
Living in a connected world, consumers expect their experiences to be the same across all channels, whether they are transacting digitally, using the ATM, working with a contact center or doing business at a branch. Systems need to connect in real-time to ensure a consistent experience, and that includes authentication across all channels.
As a leader in cross-channel payment solutions, Fiserv is uniquely positioned to leverage consolidated, real-time data to deliver best-in-class fraud protection and seamless consumer experiences.