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. According to a CNBC report, in 2016 hacked credit card fraud was close to $4 billion. One of the most popular types of fraud, account takeover—when a hacker uses compromised data to access online accounts—could reach more than $1 billion by 2020. 

New technologies make things easier for customers to shop via online automated self-service, and consumers are using self-service terminals in grocery stores and parking garages to expedite their transactions.

As new interaction channels of consumer engagement gain popularity, 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Outdated Fraud Prevention Technology – Most banks can’t keep up with fraudsters and they have become overly reliant on limited authentication systems that identify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: