New Technologies, More Channels and New Opportunities for Fraud

Jan 18, 2022, 19:58 PM by Miriam Beattie
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Chances are, you or someone you know has been a victim of fraud in some way or another. In 2020, losses from identity theft reached over $700 billion — and 29% of claims were due to credit card fraud. As the pandemic caused more people to rely on online shopping and contactless payment methods, it also accelerated the opportunities for fraud and theft to occur. 

Consumers are now accustomed to using self-service terminals in grocery stores and parking garages to expedite their transactions and make contactless payments. New technologies make things easier for customers to shop via online automated self-service, and the trend to shop online shopping is here to stay: 66% of consumers increased their online spending during the pandemic, and a majority now prefer to make purchases online rather than in stores.  

As new interaction channels of consumer engagement become the norm, the accumulation of micro customer experiences becomes more complicated to manage and keep secure. Banks are continuing to see an increase in online activity — this significant rise in online engagement has made the customer more susceptible to fraud.

Mobile Identity – Consumers take and use their devices everywhere which creates a digital trail. As the reliance on our phone increases so does the amount of personal data we carry around with us. Our mobile phones have become the ultimate tool for fraudsters to mimic consumer behavior and clone devices.

Sophisticated Fraudsters – Banks are continually offering new ways for customers to engage with them through multiple channels, but fraudsters are taking advantage of innovation and finding new ways to create accounts, take over accounts and commit fraudulent transactions.

Outdated Fraud Prevention Technology – Most banks can’t keep up with fraudsters and they have become overly reliant on limited authentication systems that identify users through a combination of components known only to that user — such as user names, passwords, bank codes or PINs.

However, there is hope — banks can leverage fraud technology, such as Alvaria Verify, to recognize when fraudsters have infiltrated accounts and prevent them from taking action. Aspect Verify enables banks to use data and insight to monitor and analyze consumer transactions, customer engagement preferences and mobile network data. This approach helps banks carefully monitor activity and identify when fraudsters slip-up, so they can stop them from getting away with financially malicious crimes.

Learn more about Alvaria Verify and how it helps banks remain transparent while protecting consumers from fraud through a frictionless consumer experience: