LexisNexis® Risk Solutions has published a whitepaper exploring the challenges in addressing sophisticated fraud threats due to increased digital adoption and high expectations for online transactions.
The white paper “Multifaceted Fraud Attacks: Behavioral Biometrics as a Defensive Tool” reveals that most people are using person-to-person (P2P) payment platforms more frequently since the start of the pandemic.
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However, a consumer survey reveals that 10% of respondents are using the services less often. Of consumers who had reduced using P2P services, a significant proportion of consumers changed their behaviour due to fraud concerns.
“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, of fraud and identity strategy, LexisNexis Risk Solutions.
“Businesses need the most multi-dimensional view available of identity to make high-quality decisions. Behavioural 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.”
Additional findings in the white paper show that 48% of fraud executives ranked consumer scam attacks among their top concerns in 2022 when thinking about transaction control frameworks.
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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.
An increasing number of organizations have begun implementing behavioural biometrics in their fraud operations. The white paper reveals that business users’ satisfaction with behavioural biometrics ranked above more established approaches such as third-party identity verification, credit bureau scoring and device ownership and history verification.
“The adoption of behavioural biometrics technology is appealing from both a fraud prevention and customer experience perspective,” said Jim Mortensen, strategic advisor at Aite-Novarica Group.
“The capability is attractive as it authenticates users on a passive basis, in the background, and requires no active intervention by the customer beyond their normal use of the app or website.”
Download the whitepaper “Multifaceted Fraud Attacks: Behavioral Biometrics as a Defensive Tool” here.
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