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It's hard to imagine an individual customer volunteering to remember multiple online passwords for various online accounts. Yet, for most of internet history, passwords have served as the backbone of online security and recognition—and given fraudsters easier access to our personal and financial data. Fortunately, our recent report reveals that consumers and businesses are evolving how they think about online recognition and authentication. Passwords are no longer consumers' preferred method of online security. For the second year, they didn't even make the top three list of what consumers consider the safest recognition methods. Instead, consumers are increasingly open to a variety of recognition tools, from physical and behavioral biometrics to one-time passcodes. By providing recognition choices, companies can improve the customer experience, decrease fraud, and ultimately build even more brand trust. Consumers are moving beyond passwords, but what should come next? Around the world, consumer fraud concern is rising in tandem with fraud activity. More than half of consumers report that they're worried about fraudulent online transactions, and 40% say that their concern has grown over the past year. That's likely because online fraud has become a far too common experience. For instance, 58% of consumers say that they've been a victim of fraud or know someone who has been a victim, and 83% of consumers say online security is their top priority. The awareness has made consumers more interested—and more confident in—emerging online recognition tools. It seems that many are not only tired of passwords but also understand how easily passwords can be compromised. Those surveyed ranked physical biometrics, pin codes delivered to a mobile device, and behavioral biometrics as the safest recognition methods. Notably, consumer confidence in each of the top three methods has increased significantly since 2021. This confidence in advanced recognition tools spans generations. For instance, 90% of Baby Boomers rank physical biometrics as the most secure, and 82% of Gen Xers and 75% of Gen Z say the same. Meanwhile, 81% of Millennials say behavioral biometrics are the most secure. These survey results suggest that most consumers are aware of fraud risk and willing to explore technologies that make their online transactions safer. Why recognition choice leads to better business outcomes Amidst this environment of change, financial service companies have the opportunity to introduce advanced recognition methods. Consumers are showing their willingness to move beyond passwords. But which recognition method should financial service companies choose? Which one will win out over the others? There's no one right answer. Consumers rank physical biometrics, pin codes, and behavioral biometrics as their top three preferences; however, there is no runaway leader in the group. Which method consumers prefer depends on what they're prioritizing. For instance, consumers who want convenience prefer physical biometrics, while people who value security tend to like two-factor authentication. The ambiguity around preferences allows businesses to introduce choice to their customers. Companies can offer visible methods that give customers access to the newer recognition tools they're beginning to prefer. Meanwhile, continuing to layer invisible methods that strengthen the overall security profile and enhance the customer experience. A menu of recognition options speaks to customer sentiments toward emerging technologies and may engender more trust and loyalty to a brand. For example, our 2022 research shows that 59% of consumers say that use of artificial intelligence increases their trust in a company. The key is being transparent about the choiceson offer and the role they play in protecting customer accounts and data. For example, explaining that the data underpinning specific authentication methods never leaves the device can go a long way with customers who may have misguided assumptions or reservations about specific recognition tools. The orchestration imperative Implementing choice can help customers improve the perception—and reality—of their online security. But leveraging multiple recognition options can also help organizations to better fight fraud. Multiple options enhance understanding of the customer and enables data analysis that can more easily identify outliers. The numerous data points strengthen recognition efforts, which further reinforces trust. It's a virtuous cycle that improves the customer experience and benefits the business. However, implementing multiple recognition methods can be a costly endeavor. Whether using outside vendors or developing and maintaining tools in-house, businesses should be layering recognition tools in the most efficient (and affordable) way. This is where orchestration tools really help. Creating secure environments for customers and businesses will continue to be complicated. Fraudsters are only getting more creative, and mitigating their impact requires a complex web of solutions that stymies them at various points. By starting with an orchestration engine, businesses can launch and manage multiple recognition methods more elegantly, using each tool correctly and at the right point in the customer journey. This strategic approach creates a single point of access to fraud and identity solutions, giving a 360-degree view of customer identity and reducing friction across the customer lifecycle. The days of passwords as the primary recognition tool are waning. Today's consumers understand the benefit of advanced recognition methods and will use them to increase their security, convenience and privacy. Offer customers choices, and businesses can meet these evolving expectations and decrease fraud risk along the way. 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Online fraud has increased at unprecedented levels over the past two and half years, with numerous reports coming from all corners of the world to confirm that. From benefits and unemployment fraud to authorised push payment fraud, and more advanced scams such as synthetic identity fraud and deepfake fraud, cybercrime has been on the rise. Understandably, the increase in criminal activity has had a significant impact on financial services businesses, and it is little wonder that this has been reflected in our recent study: • 48% of businesses reported that fraud is a high concern, and 90% reported fraud as a mid-to-high concern • 70% of businesses said their concern about fraud has increased since last year • 80% of businesses said that fraud is often or always discussed within their organisations High levels of fraud have also raised consumer concern, and their expectations of the protection businesses should offer them. Nearly three-quarters of consumers said that they expect businesses to take the necessary security steps to protect them online. However, only 23% of respondents were very confident that companies were taking steps to secure them online. Businesses need to take additional steps to meet consumer demand, while also protecting their reputation and revenue streams. Businesses are investing in fraud prevention, so why isn’t it working? As a result of the rise in fraud during the pandemic, there has been an increase in spending related to fraud prevention tools and technology, with 89% of businesses surveyed in our latest research indicating that investment in fraud detection software is important to them. However, there is a risk that institutions could take a siloed approach, and funds could be spent on point solutions that solve one or two problems without adding the needed flexibility to fight multiple attack patterns. This gives fraudsters the opportunity to exploit these gaps. Orchestration and automation drive fraudsters away Criminals constantly evolve. They are not new to technology and have multiple attack patterns that they can rely on. They also share information between themselves at a higher rate and pace when compared with financial institutions, banks, and merchants. Fraudsters can learn how to bypass one or two features in an organisation’s fraud prevention strategy if they recognise weak spots or a vulnerability that they can take advantage of. However, when multiple fraud prevention tools and capabilities work harmoniously against them, the chances are higher that they will eventually be blocked or forced to move to a weaker place where they can exploit another system. Synchronizing multiple solutions together is the key to excellent fraud orchestration Fraud orchestration platforms give businesses the chance to layer multiple solutions together. However, taking a layered approach is not only about piling multiple point solutions but also about synchronizing them to achieve the best output possible. Every solution looks at different signals and has its own way of scoring the events, which is why they need to be governed into a workflow to achieve the desired results. This means that institutions can control and optimize the order in which various solutions or capabilities are called, as the output of one solution could result in a different check for a subsequent one or even the need to trigger another solution altogether. It also gives companies the ability to preserve their user journeys while answering different risks presented to them. Some businesses are seeking to build trust with customers but want to stay invisible to remove friction from their digital customer experience. This is where capabilities such as device intelligence, behavioural biometrics, or fraud data sharing could be added as an additional layer in the fraud prevention strategy. Those additional solutions may only be called 30 per cent of the time when there is a real need for an additional check. Excellent orchestration means that organisations can rely on multiple solutions while only calling the services they need, exactly when they need them. Building trust through a secure but convenient customer experience. Machine Learning should be the final layer to rule them all The results from our research revealed the top initiatives that businesses are leveraging to improve the digital customer journey with the top two being: • Improving customer decisioning with AI • New AI models to improve decisioning While our April 2022 Global Insight Report showed that consumers are becoming more comfortable with AI, with 59% saying they trust organisations that use AI. Fraud orchestration platforms allow companies to deploy unified decisioning by leveraging machine learning (ML) on top of multiple fraud prevention tools. This means they can rely on one cohesive output instead of looking at separate, sometimes contradictory results across various platforms and making subjective decisions. ML can also offer explainability by pointing out the attributes that contributed the most to a particular suggestion or decision. These could be attributes coming from a few different tools instead of one. This also means that operational teams, like fraud investigators, have a single view of activity, resulting in operational efficiency - removing the need to log in to different tools and look at multiple screens, views, and scores, while also enabling faster decisions. Stay in the know with our latest research and insights:

Did you miss these June business headlines? We’ve compiled the top global news stories that you need to stay in-the-know on the latest hot topics and insights from our experts. Protecting customer accounts: The defining domain of digital CISOs CIO reports on data from Experian's latest Global ID & Fraud Report to look at why expanding challenges and responsibilities around customer and employee data protection and user experience means that the right authentication solution is critical. Experian says 25% of consumers were victims of online fraud in Asia Pacific Fintech News looks at Experian's latest Global ID & Fraud Report, citing that a quarter of consumers across Asia Pacific (APAC) have been victims of online fraud, but across all markets surveyed in the region, many remain unconcerned about fraud and identity theft amidst today’s growing fraud risk due to digitisation. Experian India launches PowerCurve Strategy Management, cloud-based decisioning solution The Business Information Industry Association reports that Experian India has launched a new PowerCurve Strategy Management solution, a powerful decisioning solution delivered as software-as-a-service via cloud. Digital wallets win over Brazilian consumers; Interview with Caio Rocha, gives Serasa expert opinion Serasa's Caio Rocha talks to Jovem Pan News in an exclusive interview discussing Experian's recent Global ID & Fraud Report, highlighting that 9 out of 10 Brazilians consider digital wallets safe. Stay in the know with our latest research and insights:

Experian’s latest research shows that the crisis of the past few years has yielded a new, savvier digital consumer. With the rapid move to online services amidst the pandemic, consumers worldwide adapted—and quickly. Fifty-three per cent of consumers say they have increased their online spending and transactions within the past three months, and 50% plan to increase it even more over the next few months. As online activity has surged, so too have consumer expectations for friction-free, secure transactions. More than 80% of consumers say a positive online experience makes them think more highly of the brand. And if businesses don't meet those expectations? Well, switching providers is only becoming easier . For financial service providers, the evolution of consumer behaviour presents both an opportunity and a challenge. It's never been more critical to ensure that digital experiences are convenient and frictionless. However, soon that will be the expectation and not the draw for new customers. Instead, finding unique ways to compete will be what separates the good from the great. Convenience versus risk In our latest survey, consumers ranked security, convenience, and ease of recognition as the top contributors to a positive online experience. All of these are vital components to providing a frictionless transaction. However, seamlessly logging in to a financial app, applying for credit, or managing a balance isn't yet the standard for every provider. Many traditional banks continue to play catch-up with digital upstarts, but consumers are becoming less tolerant of barriers to accessing services and products, with 23% saying that businesses aren’t meeting their expectations for digital experiences. This provides businesses with the opportunity to attract and retain new customers, especially those tired of manual account onboarding processes. For instance, leveraging emerging recognition tools adds to the convenience factor, limiting the time customers spend inputting data and streamlining the entire experience. But even as they continue to prioritise frictionless processes, businesses should be wary of sacrificing security or increasing their own risk. In our survey, 73% of consumers said that the onus is on businesses to protect them online. While they don't want security efforts that slow down their transactions, they expect the level of security to remain high nonetheless. On the business side, we've also seen providers creating friction-free options for lending—for example, in the Buy Now, Pay Later (BNPL) space—that enable consumers to access credit nearly immediately. But even with the convenience, there is still a need to manage affordability and ensure that these customers aren't introducing additional risk to credit models. Differentiate to retain customers: The growing role of rewards With all the innovation underway, a friction-free experience will become the standard. And it may already be so among digital-first businesses. This begs the question: If a secure, convenient experience is the norm for consumers, then how can businesses differentiate themselves? The next competitive differentiator will be how businesses reward customers for their loyalty. It's no longer enough to provide new customers with low-interest or no-interest credit on small purchases. Forward-looking financial services providers are getting far more creative with their rewards. For instance, businesses offering BNPL are enabling their customers to accumulate loyalty points for using the service with multiple retailers. Customers can then put those points to use as discounts on merchandise from the places they already love to shop. Data sharing and analytics play a significant role in this approach, allowing businesses to understand their customers' behaviours and personalise offers and rewards. Notably, our survey reveals that 83% of consumers say their awareness of how companies use their personal data for security, convenience, and personalisation has increased. Today's consumers are as digital as ever, and there's no going back. While friction-free may have been the differentiator before, it's rapidly becoming the standard. Going forward, financial services providers will need to find a new way to compete for savvy consumers who expect—and demand—secure, frictionless online experiences. Stay in the know with our latest research and insights:

Juniper Research’s latest digital identity leader board predicts a big shift in the market – identity and fraud are now becoming synonymous. Experian’s position as number one vendor on Juniper Research’s leader board demonstrates why Experian’s flagship digital identity and fraud platform, Crosscore, is central to the future of  identity and fraud management. “We’re thrilled Juniper has positioned us as the top provider of digital identity,” said David Britton, Vice President of Global Strategy for Digital Identity & Fraud at Experian. “Being able to accurately identify a customer in a digital transaction helps our clients provide a better customer experience and prevent fraud. Fighting fraud and reducing risk, while enabling great consumer experience is at the heart of Experian’s mission to make the digital world a safer place, even as cybersecurity rises as a worldwide threat.” Digital identity’s convergence of identity verification and fraud detection presents both opportunities and challenges for businesses, all in direct response to new consumer demands for a seamless, safe and uninterrupted digital customer journey. Key digital identity market Takeaways – Juniper Research Identity and Fraud Are Becoming Synonymous Trust is not a transactional feature of a digital identity system between identity creators and identity subjects, but rather, it is an inbuilt part. Given the unprecedented impact of the COVID-19 pandemic on eCommerce volumes, the advent of remote/hybrid working and the demand for eGovernment services, digital identity’s tie with privacy and security has become much more visible. An ever-increasing number of fraudulent activities highlights the need to ensure customer security and protection of personal and businesses data for integrity of digital identity systems. Fraud and digital identities are closely intertwined, also because preventing fraud involves getting the right identity datapoints, understanding their significance and acting upon the related findings. Governments Will Ramp Up Their Digital Identity Efforts Government regulations and initiatives around digital identity are a vital force shaping the market landscape. Success of eGovernment services is largely dependent on a mechanism of identifying citizens/users in an assured manner, usually via striving to create trusted identities. Even prior to COVID-19, governments around the globe were employing digital identity-related initiatives in areas other than eGovernment services, such as border controls and telehealth. Compelled by the challenges faced in terms of cybersecurity and citizen trust in identity initiatives, governments will increasingly collaborate with third-party vendors to come up with solutions with better usability and security. Identity Verification Use Cases and Underlying Technologies Will Continue to Dominate the Market Verification is one of the key areas affecting the digital identity market, mostly owing to the catalyst power of the pandemic digitalising transactions across all industries and business verticals. The solutions and use cases of digital identity verification (ie, login, anti-fraud, and decentralised identity) are numerous, as secure and convenient customer onboarding has been at the forefront of any critical digital engagement. These use cases and underlying technologies, such as biometrics, lend themselves to different industries and verticals and so, they will continue to enjoy customer uptake for the foreseeable future. Read now: Juniper Research Digital Identity Competitor Leaderboard Related content: Defining digital identity on the back of the ‘big digital shift’ What is digital identity and why should we care?   Stay in the know with our latest research and insights:

During the week of International Womens' Day, we shine a spotlight on the women thought leaders across Global Decision Analytics.  In this Juniper Research interview, Kathleen Maley, VP of Analytics Product Management talks about the current state of data analytics, with the backdrop of Juniper Research's Future of Digital Awards and its recognition of AIS. Watch the video to discover: Current problems with data analytics Broad nature of activities of what is now defined as analytics Model development, model scoring, model regulatory control, model risk management and model deployment Where is data coming from - is it clean and do we understand it? Importance of humans in the development of algorithms Lack of data - where do we need to close gaps? How does looking at the past help with looking to the future - the importance of current/real-time data The expense of maintenance - tech stack - there are now alternatives Democratization of data - expanding credit access by using non-traditional sources of data Talent shortage of data scientists - low-code and no-code Extracting data value for businesses when data is ever-expanding Stay in the know with our latest research and insights:

The pandemic may have accelerated digital transformation across the world of financial services , but behind the scenes, banks and lenders still face a significant tech debt, and many organizations are committed to continuing the innovation. That's for good reason. Today's consumers increasingly expect a digital-first customer experience. The days of visiting a local bank branch to access financial services and products are fading away. Fintechs have risen to the occasion, transforming the market and meeting the growing digital demand. For traditional banks and lenders, waiting to innovate is no longer an option—it's a must to remain competitive. So what comes next? Here's a look at the technology trends that stand to impact and transform financial services as we advance. 1. The rapid rise of low-code/no-code solutions According to a recent survey from TechRepublic1, nearly half of companies are already using low-code/no-code solutions (LCNC). The same report also notes that among companies not using LCNC solutions, one in five plans to begin within the year. The driving force behind this trend is the global shortage of digital skills, from software development to data analytics to information security. The pool of technical talent has long been smaller than the demand, and the Great Resignation has only exacerbated the problem. For instance, 75% of software developers2 report they're currently looking for other jobs. Amidst this ongoing talent shortage, there's another stressor—the need to deploy technology products to market faster and faster. LCNC solutions answer these challenges by making doing so easier and quicker. The technology democratizes software development, allowing business users—or citizen developers—in different functions to design and deploy applications. With the skills gap likely to continue, the interest in LCNC solutions will too. LCNC solutions enable financial institutions to keep pace with technology changes and meet the digital demand, even with limited technical resources. 2. Leveraging data will require adding value—and engendering trust Financial service organizations have used advanced data analytics to provide consumers with more personalized products. And consumers have been on board as long as they see the benefit. For example, a 2021 consumer survey by Experian showed that 42% of consumers would share personal data, and 56% would share contact information, if it improves their experience. However, this research speaks to growing tension between consumers and financial service providers. The first want more personalized services, but they are also more selective about which companies they share data with. Consider a recent McKinsey study that revealed that 44% of consumers don't fully trust digital services3. As we advance, organizations that want to build and keep consumer trust will need to be thoughtful about the data they ask for and increasingly transparent about how they plan to use it. 3. Doubling down on AI but looking for ROI in the process AI has proven helpful in multiple ways, from powering recommendation engines and chatbots within the retail world to improving fraud analysis and prevention in the banking industry. But there's still so much more organizations can do, especially with the AI they already have. Financial service and fintech companies have funneled massive resources into AI solutions. However, only 20% of AI models4 are ever used in widespread deployment. What’s more, the current average return on AI investments hovers around 1%. This year, expect to see more organizations examining the ROI of AI-powered technology and looking to get more from the investments they've made. Technology partners can help by identifying additional opportunities for AI models to drive customer engagement, validate credit scoring, and protect businesses against fraud. 4. Banking-as-a-Service will yield even more choices and more competition There have long been high barriers that protect traditional financial service organizations from much new competition. But the advent of open APIs and Banking-as-a-Service (BaaS) is knocking these barriers down, yielding a considerable influx of startups that provide banking-like services. And this wave of new fintech has captured consumer interest. Consumers have shown that they’re willing to try financial service products from an array of providers; they're not married to sticking with traditional banks. In fact, 27% of global consumers5 have relationships with neobanks, and 40% report using financial apps6 outside of their primary banking app. However, the gold rush towards BaaS will yield a few winners and a lot of losers. The question for the near-term is who will survive in this crowded market. Consumers will also begin to figure out what makes sense in terms of how many financial organizations they want to connect with and when to say enough is enough. 5. Embedded finance is the new black in retail In a similar theme, the influx of embedded finance products into retail experiences continues to gain traction. There's only more to come. Multiple leading retailers, both longstanding and new D2C brands, have incorporated Buy Now Pay Later (BNPL) payment options into their checkout process, and shoppers are rapidly adopting these new payment methods. One-third of consumers report they've used BNPL before7. Though the payment method still lags far behind other forms of credit, awareness of BNPL and other embedded finance solutions is rising, especially among younger consumers. Looking forward, expect to see embedded finance make inroads not only with more retailers but also across other industries such as hospitality or entertainment. These pressing tech trends are reshaping financial services. In the process, they're bringing new solutions to consumers and new opportunities to banks and non-traditional lenders. Organizations that keep pace with these trends will lay the foundation for their next generation of customers as well as the future of their business. More 2022 trends and predictions Stay in the know with our latest research and insights: 1.TechRepublic Survey: Low-code and no-code platform usage increases 2.Stack Overflow: The Great Resignation is here. What does that mean for developers? 3.McKinsey: Are you losing your digital customers? 4.ESI ThoughtLab: Driving ROI through AI 5.EY: How can banks transform for a new generation of customers? 6.Axway: Consumers are starting to sense an open banking transformation 7.PYMNTS.com: No slowdown in sight for surging BNPL as consumers want it, retailers need it

Steve Wagner, Managing Director, Global Decision Analytics on Redesigning the future of consumer lending with data and analytics. Find Steve Wagner's interview in Raconteur's Future of data report to discover what businesses need to do to succeed in an increasingly digital world. “The good thing is that technology and data now allow businesses to put the customer journey at the heart of what they’re doing. With the advanced technologies available today, businesses can access relevant data and deliver on customer expectations in their moment of need. Whether it’s access to a loan or mortgage, or to consolidate debts, a real-time view of the consumer is possible.” Read the full article and find out about: Why the digital customer experience, enabled by both data and analytics, is the new battleground for many industries. Consumers reporting they were online 25% more in 2021 compared to a year before. Online retail sales saw four years of growth in just 12 months during the Covid pandemic. Demand for frictionless journeys through biometrics or multimodal authentication mean customers can see the value exchange in sharing personal data. Behavioural biometrics is the next frontier in tackling fraud and providing a seamless customer journey. Technology is allowing us to analyse far more data sources in real time, providing a comprehensive picture of an individual. Open Banking and the democratisation of data are part of the progressive change around data. Importance of extracting the insight lenders and fintech providers need to implement the best customer journey and make the best decisions. Businesses can make credit-risk decisions using automation and advanced analytics. This will lead to more opportunities for credit and better financial inclusion. Harnessing the power of 'insight everywhere' for better knowledge bases. "The application of advanced analytics, artificial intelligence and machine learning is allowing businesses to tailor their services to an audience of one - at scale." Stay in the know with our latest research and insights:

*Stats from Experian Global Insights Research Read related content The evolution of data: Unlocking the potential of data to transform our world Be more open: Results of the 2021 Open Banking survey - Experian Academy Full text: The future of consumer lending in a digital economy With the advanced technologies available today, businesses can access relevant data and deliver on customer expectations in their moment of need. As more people go online and use digital channels, your business must do more to create a seamless and secure experience. Online activity has increased by 25% globally Online retail sales saw 4 years of growth in 12 months Now online, consumers have high expectations for digital experience without sacrificing security, convenience, and privacy. 64% of consumers have abandoned an online transaction in the past 12 months Consumers, regardless of age, now prefer online banking and payments over in-person transactions The future of credit and fraud risk management is integrating data and technology seamlessly to put the customer at the centre of it all. 74% of businesses are adopting AI (2021), up from 69% the year before Businesses can embrace customer-centricity at scale through: Behavioural biometrics within a layered strategy of defence to make it easier to tackle fraud and maintain a seamless customer journey Open source data so businesses of all sizes can build a view of potential customers, minimise credit risk, and bring more people into mainstream financial services Advanced analytics, AI, and machine learning for real-time underwriting, fraud detection and a truly personalised service “The market is now driven by consumer demand for digital services. Those companies that are able to tailor the digital customer journey – so it reflects the best-in-class consumer experience – are the ones that will win.” – Steve Wagner, Managing Director of Global Decision Analytics

Mike Gross, VP of Applied Fraud Research & Analytics, takes a look at the seven top global fraud predictions for 2022. A new wave of deep fake synthetic identity fraud Fraud-as-a-Service is just a click away Real-time payments = faster fraud Fintech growth comes at a cost The two-fold reality of ransomware attacks Supply chain issues expand marketplace scams Digital identity’s convergence of identity verification and fraud detection Digital acceleration is transforming the way financial services providers connect with consumers. The rise of Fintechs, cryptocurrency, and embedded finance options from alternative lenders has changed the face of the financial services industry, and a secure but seamless customer experience has become the gold standard for businesses. Driving this demand is consumers, led firstly by a natural shift towards digital encouraged by disrupter technology providers and their easy-to-use products, and secondly by the pandemic-induced online boom. But with these changes come opportunities. And not always positive ones. As businesses grapple with how to keep up with digital demand from consumers, they are also dealing with an evolving fraud landscape, with online payment fraud losses alone set to exceed $206 billion between 2021 and 2025*. Fortunately, advancements in fraud detection and prevention methods have also accelerated, with machine learning and AI enabling businesses to keep pace with rapidly evolving fraudsters. But how have such rapid changes in the industry impacted criminal activity in this space? We look at seven key global fraud predictions for 2022. A new wave of deep fake synthetic identity fraud 2021 has seen a surge in deep fake identity fraud, and that looks set to continue. The development of AI to impersonate consumers’ voices and faces is becoming more prevalent, making it challenging for businesses to verify and authenticate identities. With recent advances in deep fake technology, fraudsters can leverage compromised identity data to bypass verification controls, and then either create new synthetic profiles with documents, facial images, and voice cloning to bypass identity authentication requirements for secure exchanges like government benefits sign ups. These deep fake tactics can impact businesses’ ability to recognize consumers across the entire lifecycle, but particularly at the point of enrolment and authentication. Detection and prevention of deep fake identity fraud involves applying a layered strategy of technical defenses along with a vigilant approach. Requiring identity data or documents in isolation is not sufficient. Organizations need to fight fire with fire by capturing digital and behavioral data to complement identity controls, then using AI and machine learning to analyze interactions and spot fraud. Fraud-as-a-Service is just a click away The use of automated bots by fraudsters to impersonate businesses and socially engineer their customers is also growing rapidly. As fraud controls become even more effective at thwarting traditional attacks, fraudsters see an opportunity to evolve their tactics and capitalize on advances in voice bots. In 2022 and beyond, a large portion of fraudulent transactions will be submitted by legitimate consumers who are being socially engineered to not only provide data, but to use their own devices to submit what they believe are legitimate transactions. Banks globally are already witnessing the start of this trend, as fraudsters can now purchase bots to contact consumers, impersonate their banks, retrieve one-time passwords, and forward those codes to fraudsters to complete fraudulent transactions. Historically, fraudsters couldn’t scale this type of attack to manage thousands of calls to consumer victims, but now they can just hire a bot that sounds and acts just like a bank reaching out to their customers. As a result of this success and the cost effectiveness of bots, fraudsters are expanding operations to impersonate every type of business, from retailers to government organizations. Real-time payments = faster fraud Faster money often means faster fraud. Real-time payments (RTP) increased by 41% between 2019 and 2020 and are set to rise again by 23% between 2020 and 2025*. From mobile payments all the way to Buy Now Pay Later, RTPs have provided ample opportunity for fraudsters to quickly monetize and cash-out – converting money to other forms of currency like crypto and then laundering the funds through multiple fraudulently-established accounts. The lack of regulation in cryptocurrency makes it an especially attractive target for fraudulent activity because attackers can more easily remain anonymous and funnel funds across currencies in mere seconds. Crypto exchange platforms have profited from the unregulated environment but are starting to pay the price when it comes to fraud losses. The speed of real-time payments presents unique challenges to businesses because they often can’t be revoked or easily traced, so detection can be more difficult. But the demand for RTP is only increasing, so consistent regulations need to be in place and organizations must be able to accurately verify and authenticate identities and transactions across channels in seconds to detect criminals preying on these faster payment methods. Fintech growth comes at a cost Buy Now Pay Later has exploded over the last year. Alternative lenders now dominate the retail landscape, embedding themselves in customer journeys, offering consumers fast and easy credit, and minimizing fraud liability for merchants. But these disruptive businesses offering tailored financial products based on vast amounts of customer data have the potential to leave the door wide open to criminals. A frictionless customer experience and easy-to-use technology has allowed these nimble businesses to attract millions of customers, and with it, huge volumes of fraud. According to Aite-Novarica Group, Fintechs have an average fraud rate of around 0.30%, which is double that of credit cards that average 0.15-0.20%. 2022 is likely the year that Fintechs put risk at the forefront of strategy. Without the right identity and fraud protections in place across their websites and apps, they not only risk fraud losses, but they could also damage brand reputation. And without quick, comprehensive fraud reporting back to the businesses they serve, they also risk enabling even more downstream fraud attacks. The two-fold reality of ransomware attacks As businesses experience extortion in the form of weaponized malware, the sophisticated nature of AI used in ransomware attacks is rapidly evolving, allowing attackers to be even more successful at extracting data and wreaking havoc. A business’s data is the primary commodity that the fraudsters use to negotiate ransom payments, but the stolen data of that business’s customers is often forgotten, which can be an even greater concern. This growth in ransomware and the availability of sensitive consumer and business data will not only drive attacks in 2022. It will likely change the nature and depth of those frauds using newly-available data such as business financials or consumer medical conditions or employment details in more pervasive attacks. Organizations falling victim to ransomware must understand all of the data that has been compromised and should notify its customers so they can take steps to prevent future identity or other fraud attacks. Supply chain issues expand marketplace scams We expect to see more issues with marketplace fraud as supply chain issues and inflation persist through 2022. Where there are supply gaps, fraudsters will meet the pent-up demand with products that don’t exist, scamming customers to part with money for nothing in return. In the current marketplace environment, it’s easy to set up a fake business with positive reviews. And because consumers have no way to verify the authenticity of a business, they roll the dice on what seems too-good-to-be-true, lose money, and then try to recoup funds from their financial provider. This is another area where BNPL providers will end up bearing responsibility for a lot of retail fraud in 2022, as they take on liability for the fraud and credit losses that fueled their rapid growth. Digital identity’s convergence of identity verification and fraud detection Password-free experiences led by the ubiquitous smartphone and the ability to make real-time payments has resulted in a demand for a seamless, uninterrupted customer journey. But central to all of this is identity authentication. As identity verification and fraud detection continue to converge, the big question is, how can a secure, consumer-friendly approach to digital identity be adopted and regulated, and by whom? The announcement of the European Digital Identity scheme shows that governments are beginning to move in this direction, but there is still a long way to go. As authentication and onboarding systems continue to be targeted by fraudsters, the bid to create secure, reusable digital identities to enable more seamless commerce and to mitigate fraud and criminal activity becomes more critical. This is a concept that is dominating the conversation and one that we expect to play a big role in fraud prevention in 2022 and beyond. *Juniper Research Stay in the know with our latest research and insights:

Transaction data is some of the most valuable data a financial institution holds. By understanding how and where customers are spending money, businesses can leverage that insight to provide exactly the right next service or cross-sell product that a customer will most likely use. With open banking, this data is becoming democratized. It allows customers to give other institutions and businesses permission to access the data, which helps mid-market lenders and fintechs compete on the same playing field as the larger banks. In addition to spurring competition and innovation, it offers the potential for greater financial inclusion to people who struggle to gain access to credit due to a lack of information on their financial track record. The impact of open banking can’t be understated. According to Accenture, it will account for roughly $416 billion in revenue across the top 20 economies once open banking is fully online. And that day is closer than you might think; a survey by Know-It revealed that 55% of UK credit providers said they plan to adopt open banking in 2021, while 93% of businesses expect to adopt the data-sharing initiative within the next 12 months. While open banking was created to give customers more control over their data, the ability for institutions to leverage shared data creates the potential for data-rich services that the industry is only starting to explore. The more that banks integrate data into their services, and the more that technology firms use data to offer financial services, the more the lines between the two will blur. The role of decision analytics in open banking The key to incorporating a successful open banking approach will be leveraging the right analytics tools for better decisions. Using real-time analytics and advanced decisioning logic so lenders can effectively leverage the data available through open banking initiatives. Here are five ways that decision analytics will enable open banking to create new credit opportunities for customers. Better risk models. Analytical models and scorecards are the lifeblood of risk analysis. Open banking makes it possible to gather far more transactional data to add to credit risk models to better understand the true risk of each customer. More accurate predictions. Transactional insight powered by open banking and decision analytics creates a deeper, fuller view into a customer’s financial profile at origination. By using advanced analytics to determine credit scoring, affordability, income verification and other factors, institutions can make more accurate predictions about how much a customer can reasonably afford to borrow and pay back when issuing credit. Fewer risky customers. By leveraging data from across institutions, lenders can also look beyond common metrics like credit scoring and income verification to dig deeper into a borrower’s background. Sophisticated decision analytics can uncover unseen red flags for a specific borrower that may require the lender to take action. Increased revenue. Looking beyond origination, open banking can help organizations leverage decisioning analytics on an ongoing basis to better understand the needs of their customers. By continuing to analyze their data, institutions can then identify more relevant cross-sell and upsell opportunities, increasing the lifetime value of the customer. They can also create customer cohorts that allow them to identify which segments will be more likely to accept specific promotional offers across the customer journey. Better customer experience. Open banking can use decision analytics to power automation so customers can get credit decisions faster. For example, an institution can leverage this ability to automatically approve credit upgrade requests from an app instead of requiring a customer to call or come into a branch. By making it faster and easier to make these types of decisions, customers will feel better about your brand and more likely to continue giving you their business. In addition, this automation reduces time-consuming tasks, allowing service staff to focus on more complex customer requests. What does it take to leverage open banking? By its nature, open banking requires large volumes of data from multiple sources so that businesses can make real-time decisions about creditworthiness and risk. Breaking down traditional data silos is central to powering analytics and increasing credit opportunities. For traditional banks relying on legacy, on-premises infrastructure to manage data, internal data silos may be a problem, limiting the use of the data available. Many of these institutions are turning to cloud solutions to reap the benefits of open banking. Cloud integrations enable automatic, daily updates and upgrades to maintain compliance. Data security is provided by the cloud vendor, not internal IT staff, so most importantly, the cloud makes it easy to reduce operational silos by connecting data through integrations, allowing businesses to maximize the potential of open banking. The future is open Open banking has the potential to revolutionize the way financial institutions and customers think about financial services. A modern decisioning solution can leverage data across the cloud to give you the power and flexibility to incorporate open banking into operations, turning complex data into actionable insight. Download the 2021 Open Banking Survey (EMEA) Stay in the know with our latest research and insights:

As holiday shoppers flood online to finish up last-minute gift-buying, there's a high chance that they're paying attention to not just product prices or shipping times but also the security of their transactions. In 2020, with many stores still closed down due to the pandemic, digital sales over the holidays increased by 20%. Though we're still awaiting figures from this year, all signs point toward an increase in digital transactions that's here to stay. But as online transactions have ramped up, so have consumer concerns about the safety of their online activities. The recent Global Insights Report showed that 42% of consumers are more worried now about online safety than they were last year. The concern is understandable—as more people head online, we've seen a record number of breaches. However, now more than ever, businesses need to integrate security into their customer experience, taking a layered approach that provides added protection without additional hassle. Heading into the new year, those that can show they prioritize security as part of the customer experience—and not adjacent to it—will earn the trust and business of a rapidly expanding online customer base. More activity, more risk We've been tracking consumer and business activity online over the course of the pandemic. Our most recent research, drawn from surveys done in October, reveals a 25% increase in digital transactions worldwide since the beginning of the pandemic. It's a figure that's remained constant, even as covid-related restrictions wane and people venture back out to physical stores and banks. This massive digital shift happened in response to a crisis. Businesses such as financial services, restaurants, medical organizations, and retailers suddenly experienced a flood of online business and digital demand. Their option: Respond or be left behind. But as the dust settles, the enormity of the shift and how fast consumers normalized digital behavior is quite astounding. Someone who may have never considered online grocery delivery now uses it regularly. People who habitually visited their bank branch may now bank on their mobile devices. The examples are infinite. Consumers that made the online shift did so initially for physical safety reasons. They didn't want to be close to crowds or strangers because of the virus. Online felt safer. But now that digital transactions are part of many people's daily activities, consumers are awakening to the risks of online transactions. Many may have already experienced a breached account or received a notice that their data was compromised. Indeed, we saw a significant increase in attacks over the year across industries. Ransomware attacks alone are on track to reach 700 million by the end of 2021, a 1,300% increase from the year before. Best practices for better online security in 2022 More consumers are transacting digitally, and that's good news—businesses can expand their reach, grow their revenues, and introduce new digital products. But the question is: How can you leverage the growth while still keeping customers safe—and importantly, not impeding, their online experience? The answer rests part in mentality and part in action. Let's start with the first. Understandably, security guidance in the past often split the onus of safety between the business and customer. Who hasn't reminded customers that they need good password hygiene, device security, and personal data practices, or they may put themselves at risk. Indeed, customers paid attention; they ranked security as their number one priority. But the days of relying on customer actions are over. Businesses that gain customer trust in the future will be those that empower customers to improve their security while actively working to ensure that even if customers fail—their systems do not. You can achieve this by: 1. Beginning everything with a security mindset Businesses need to make security part of their growth strategy. That way, when they do experience planned — or unplanned — surges in activity, their security systems scale to meet them. Coordinating security across functional teams in the event of anticipated demand increases is another smart way to keep customers safe as your business grows. For instance, if marketing is planning a major campaign to spur online purchases, then IT and security need to know about it ahead of time. 2. Developing a multi-layered security strategy There is no magic bullet for preventing cyberattacks, account takeovers, or data breaches. But you can create hurdles for bad actors at every single turn. Combining device recognition, document and identify verification, and behavioral identification makes it that much harder for cybercriminals to impersonate your customers. Our research shows that customers are increasingly willing to provide more personal information to businesses if it means increasing their online security. They're eager to double-down if you are. 3. Utilizing vendors that keep you competitive The security space is evolving rapidly, and it's difficult for individual businesses to mind their own digital operations and keep pace with cybersecurity trends. Fortunately, high-quality vendors can do that for you, providing updated systems, education on new threats, and access to emerging technologies that keep your company and customers safe. The added benefit of these best practices is that they improve the customer experience along the way. Our research shows that customer loyalty to specific online brands is dipping—61% say they're interacting with the same companies online, which is a decrease of 6 percentage points from the previous year. Add in supply chains issues that are impacting inventory, and consumers are primed to find alternatives to their favorite online businesses. But the problems we’ve faced during the pandemic don’t have to define our digital future. Combine security with a quality experience in 2022, and you can attract and retain online customers that come for your product or service and stay because they feel safe. Stay in the know with our latest research and insights: