In a recent poll taken during our webinar Customer vs. Fraudster, Know the Difference, most banks said their customers utilize digital applications and onboarding experiences. In fact according to our partner that we conducted the webinar with, banking software company Temenos, personal banking has grown over 40% during the past three years as bank accounts become more easily accessible online for their customers. Not too long ago banks were still undergoing a digital transformation, yet today they have migrated to “the digital promised land” emphasizing the strategic importance of digital onboarding for their consumers. As digital onboarding becomes more frequently adopted, fraudsters are getting smarter and we are seeing a shift in their tactics to the online channel.
Besides the poll, during the aforementioned webinar Temenos and iovation went in depth about current trends in digital onboarding. This included how to identify fraudsters, methods of mitigating fraud, minimizing customer friction and complying with regulations while improving your bottom line through device intelligence.
One of the most notable trends that we identified in the webinar is the significant increase in synthetic identities. Specifically in the financial industry, iovation has documented a 575% increase in synthetic identity fraud with our customers from 2015 to 2018. In this approach, fraudsters piece together real identity attributes (usually stolen) and fake information such as social security numbers, name, address and credit card information to create this synthetic version of a stolen identity.
Another notable trend that emerged in the webinar is fake IDs being manufactured and sold freely. Banks have relied primarily on government issued IDs for authentication and verification. But with fake IDs becoming increasingly common, more steps need to be taken to distinguish between a valid customer and a fraudster.
Device recognition gives banks historical insight about the behavior and risk associated with the device visiting your site, protecting your business and your consumers’ accounts. iovation delivers real time device-based insights to know if a device is authorized to access an account, where the device is coming from, or if the device has a high risk history or attributes associated with it.
Temenos and iovation have partnered to combat fraud with digital customer onboarding and mobile banking. The customizable onboarding solution from Temenos and iovation creates a multilayered approach to deliver higher confidence levels about good customers and reduce fraud.
To learn more about how to differentiate the customer from the fraudster click here to listen to the full webinar.