Financial service providers, especially those who extend credit to consumers, have become the ripest of targets for fraudsters who can extract a financial windfall with just a few keystrokes and some clever social engineering.
When successful, these fraudsters make off with more than just cash – they can also tarnish your brand. Consequently, it has become imperative for lenders to head off potential fraud as early as possible in the credit application process -- and to verify their customers are who they say they are – without imposing too many hurdles that might alienate potential borrowers.
Internal fraud teams are treading a fine line in their attempt to balance risk, revenue, and a seamless user experience. They must at once flag the highest risk applications, without being viewed as the “sales prevention” team. The process is further complicated by the fact that in today’s global economy, banks and lenders often maintain remote relationships with the customer, making it even more difficult to authenticate their true identity. This is in part why fraud prevention teams are now adopting a layered approach to fraud that strikes the right balance between risk and reward.
For lenders, the key to maintaining a frictionless yet risk-based customer experience will lie in their ability to implement a layered fraud prevention strategy that combines the latest advancements in machine learning with modern, device-based authentication methods. Through such an approach, the lowest risk applications are quickly identified and accepted with minimal checks performed while the higher risk applications are processed through an additional range of fraud checks in which anomalies or inconsistencies are automatically flagged for review.
The latest device-based multifactor authentication technologies combined with a layered fraud prevention approach represents a new way forward for financial institutions that want to protect the integrity of their brand and stay one step ahead of the fast-evolving fraud landscape.
To find out more about how Callcredit and iovation are working together to help customers prevent fraud, join our webinar on March 1st, 2017 and find out how you can:
- Uncover vital information about the device your customer is using to interact on your web and mobile channels
- Customize a fraud strategy that is ideal for your unique consumer experience
- Verify more good customers and pinpoint fraudulent activity
- Provide an exceptional level of protection and ensure the highest levels of genuine customers pass through enrollment the first time