Tag: Identity & Fraud

Fraud threats continue to rise across the globe as consumers are spending record amounts of time online due to the pandemic. At the same time, emerging threats of fraud are growing, as fraudsters are taking advantage of the globally shifting economic conditions. Fraud prevention remains a top concern for both consumers and businesses alike. Anticipating future fraud risk is critical and companies are adopting more complex technology systems to ensure consumers’ financial safety. To provide a safe and convenient experience, businesses need to take a customer-first approach when evaluating the latest technology and solutions available to them. To ensure they are providing secure online experiences, businesses are turning to verification strategies using data technology and other detection methods. In fact, according to this year’s Global Identity and Fraud Report, customer recognition security strategies have become the new norm for businesses with 82 percent of companies saying they now have one in place, a 26 percent increase since the start of the pandemic. An independent research firm headquartered in Germany, KuppingerCole Analysts, released a report, Leadership Compass: Fraud Reduction Intelligence Platforms, that provides an overview of the market segment, vendor service functionality, prevention measures and innovative solutions to fraud. The report cites Experian as an overall leader, product leader, innovation leader, market leader and technology leader in fraud reduction intelligence platforms. Experian is also credited for taking a client-oriented upgrade approach and delivering other cutting-edge features while maintaining compatibility with our older platform releases. We also scored a strong positive for interoperability, usability, deployment, innovativeness, market position, financial strength and ecosystem; and a positive in security and functionality. We pride ourselves in our digital identity protection services and consumer safety, taking proactive approaches to fraud prevention and providing businesses with the necessary tools to identify risks of fraud. The report discusses fraud prevention measures and innovative solutions to fraud. According to the report, cybercrime costs will reach $10.5 trillion by 2025. The report evaluated 15 different data security and fraud prevention platforms and ranked their products, innovation, market positioning and technology in their report. All of Experian’s fraud detection and prevention services are available through our CrossCore® partner ecosystem. By combining advanced analytics, rich data assets, identity insights and fraud prevention capabilities, businesses can connect any new or existing tools and systems in one place, whether it be Experian’s, Experian’s partners or its own. With its built-in strategy design and enhanced workflow, fraud and compliance teams have more control to quickly adjust strategies based on evolving threats and business needs, which helps to improve efficiency and reduce operational costs. Learn more about the CrossCore platform.   Stay in the know with our latest research and insights:

Did you miss these August 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. Categorizing Fraud Types is the Key to Addressing Risk Security Magazine's Chris Ryan uses Experian research to break down why businesses need to first identify and understand the individual types of fraud before being in the position to address risk, especially when operating in an increasingly digital age. How To Protect Yourself Against Scammers and Deepfakes In this video, Philip Michael of Bold TV talks to David Britton, VP of Industry Solutions, about what fraud looks like in an AI-driven world, what exactly Deepfakes are, how they can be used in financial scams, and how Experian is using tools like AI and ML to fight back. Today’s Credit Decisioning: Navigating the Current Complexities The science of consumer credit decisioning is complex, writes Harry Singh, SVP of Global Decisioning, for Credit Union Times, but what has the pandemic done to further these complexities? This piece explains why lenders need to rethink existing models and processes to succeed in changing times. Experian Named Top Fraud Prevention Leader in International Analyst Report Research from KuppingerCole lists Experian as an overall leader in fraud reduction intelligence platforms. The research also recognized leadership in product, market and innovation, and across all other categories. Read about why this is important as fraud risks rise. How To Combat Fraudsters As The Digital World Grows In this piece for CEO World, David Britton, VP of Industry Solutions, writes about the relentless nature of fraud and why the goal of fraudsters never changes, and what businesses and individuals must to in the face of an ever-evolving fraud landscape in an increasingly digital world. Stay in the know with our latest research and insights:

In this opinion piece on CEO World, David Britton, VP of Industry Solutions, Global ID & Fraud, discusses why, in today's increasingly digital world, it is much easier for fraudsters to operate on a global scale. As commerce and financial services ramped up their online offerings due to the pandemic, it enabled criminals to take advantage of people in vulnerable situations. There has been a significant shift away from previously prevalent fraud schemes such as account takeover, account opening and card-not-present, towards the direct manipulation of individuals to get to their personal information and payment details. "Not only have they been taking over the world, but fraudsters have been taking advantage of the growing digital environment, and as recent research from Experian found, 55% of consumers say security is the most important factor in their digital experience. It is important for individuals to know what to do to ensure that their information is secure and to have technology to utilize in order to fight against this issue. For both personal and businesses, there are ways to combat the scandals of fraudsters." Business fraud prevention With a focus on ransomware and email compromise, there are many things businesses can do to minimise vulnerability to fraud. A layered approach to defence is key, along with device intelligence and strong employee training. Personal financial fraud Although there is a common misconception that credit card details pose the biggest fraud opportunity, identity theft is by far the one to watch for consumers today. Fraudsters can use personal information for credit or payments. "Businesses must invest in new technologies in order to give people the added security they desire when accessing their accounts. In fact, according to our most recent Global Identity & Fraud Report, consumers no longer believe passwords are the most secure method for authentication. Since the pandemic, consumers have an increasing level of comfort and preference for physical and behavior-based – or invisible – methods of security." Read the full article Stay in the know with our latest insights:

In this episode of Insights in Action, as part of our Women Making Waves in Technology special series, Pamela Stephens, Sr. Product Manager for Global Identity & Fraud at Experian walks us through her role in product management and shares some practical career advice for women in tech. The podcast explores what it takes to drive change and innovation within a shifting fraud and identity landscape, looking at the importance of connecting with teams, laser-focussed priorities, customer-centricity and how diversity and inclusion initiatives are central to supporting women in tech. "I am a relentless customer advocate. I spend most of my days focussing on solving the most urgent problems for our clients across the Identity and Fraud landscape through our technology." Top 3 tips for remote working Being authentic is how we connect, so working remotely makes this challeneging. Schedule quick 15-minute catch-ups with colleagues - and not necessarily about work. The more you know someone, the better you work with them. Burnout is real, setting boundaries for work versus life is challenging when you're in an office, never mind when at home. Schedule breaks and proritize self-care. Stay laser-focussed and organized with your calendar - be intentional with how you schedule your calendar and ensure it aligns with priorities most important for the business and you personally Discover other stories from the Women Making Waves in Tech podcast series Access all episodes of Insights in Action on Soundcloud, Spotify, Google Podcasts

In a recent interview, I had the opportunity to talk to Chris Preimesberger of eWeek about the latest Global Identity and Fraud Report. We discussed some of the business challenges executives face in the increasingly complex space around fraud mitigation while reflecting on how and why the pandemic has shifted the fraud landscape. Market movement – more of us were online than ever before With so many of us at home during the pandemic, access to digital services and the purchasing of goods online increased dramatically. According to our research, businesses responded by investing in supporting services to accommodate the increase in traffic. We saw a lot of action from businesses around how to improve the customer experience while getting a better understanding of who the customers are and how to get their online problems resolved. Our January research wave showed that with all this investment into customer experience and enablement, there were some key areas of investment. Analytics – the use of automation and AI to help make smoother, better decisions for customers – ranked highly in business priorities, but this approach does not exist in isolation. Businesses are also doubling down on support staff to ensure that consumers have a way, if there’s an anomaly in the process, to be able to respond. Whether that’s password resets or call centre staffing, there’s a desire and there’s an intention by businesses to increase staff on digital support. A shifting sense of recognition We also surveyed consumers on their preference for passwords versus other security methods. Security remains the top consideration for consumers when online, above others such as convenience, but interestingly, for the first time in four years password protection did not appear in the top three preferred security methods, favoring instead a more friction-less approach to authentication. This shift in consumer attitudes towards what we call invisible security paves the way for businesses to start to adopt more sophisticated or nuanced approaches to authentication and security. They can start to leverage behavioral analytics or device intelligence recognition without intruding on the user experience. Normalizing biometrics and the importance of a layered approach Customer attitudes around traditional biometrics are very positive – it’s one of the top-rated preferred security methods thanks to the providers that have popularised it through the mobile devices we all use every day. However, the challenge with pure biometrics is always at the point of enrolment – how do you ensure that the right person is assigning their biometric to a device? This is why a layered approach to security that incorporates traditional identity verification or authentication processes along with more advanced technical elements like behavioral analytics, device intelligence, network access, and transactional context is so important. For example, “Is this device associated with David’s account? Is this actually David or a bot? How does David hold his phone?” This includes layers of security that are considered privacy-safe, and may not even require traditional identity data but have anonymous attributes that can be associated with how someone interacts. This will be pivotal in allowing businesses to enable a more comprehensive, pliable, and flexible approach to security rather than relying on rigid but easily broken mechanisms that we’ve been using for a long time. Why the types of fraud will change as the world seeks normality Over the last year, fraudsters focused their energies on stimulus funding and many other forms of low-hanging fruit that they could easily go after, pulling back from their activities in traditional financial services or e-commerce. As the pandemic eases off in many parts of the world, fraudsters are likely to increase their activity in these areas once again as stimulus programs close down, and as consumers increase their spending. Fortunately, we found that more than half of businesses will continue to invest in fraud prevention solutions over the coming year. Fraud trends to watch in 2021 As we look at the direction in which fraud is moving, we know there is an increase in several types of fraud as we navigate what is becoming the post-pandemic world of 2021. Account takeover fraud is set to be on the rise again this year. This is when stolen credentials are used to gain access to systems. Account origination or new account opening fraud will also be on the increase, where fraudsters use stolen identities to create brand new accounts, including a rise in synthetic identity fraud. Card not present online transactions is something we will see in huge volumes given the explosion of online traffic over the last year, which will undoubtedly include an increased volume of fraudulent transactions. Stay in the know with our latest insights:

The pandemic has enabled something close to a digital revolution, but how can businesses keep up with shifting consumer behaviors while ensuring fraud prevention is top of mind? Our latest Global Identity and Fraud Report takes a look at key consumer trends online and how businesses are responding.

In a recent DataTalk interview, I had the chance to reflect on and discuss how we define digital identity these days. The big digital shift we have been immersed in since the coronavirus pandemic started has certainly changed the way we create, relate to, and protect our identities online. One of the most interesting aspects of this change is that the majority of people don't think about how they're being represented online; there's a lot of information that represents us that we don't typically take ownership over. We don't tend to think about that, but it's absolutely vital to the whole process. In this regard, this year’s Global Identity & Fraud Report shows that 8 in 10 businesses now have a customer recognition strategy in place, up 26% since the start of the pandemic. Many companies also developed digital strategies as they strove to improve their online experience and provide security and fraud prevention measures when customers needed it most. That certainly marks an inflection point, as for 55% of consumers globally, security is the most important element of their online experiences. Covid-19 has changed the definition of digital identity The covid-19 pandemic has impacted the way people rely on technology for their day-to-day interactions, from shopping to banking to digital identification. It’s particularly interesting seeing how for people that weren't really engaged online before, that weren't big believers in the whole idea of buying goods and services online, the risk of walking into a store during the pandemic outweighed their fears of shopping online. That translated into about 20% of the population moving their shopping online in the last twelve months, per Experian’s 2021 Global Identity & Fraud Report. Looking ahead, the expectation is that 46% of consumers worldwide purchase and do more things online, even when physical stores and venues are safe to go back in again, meaning that people’s digital footprint is growing faster than ever. In this context, we could define digital identity as how we represent ourselves in a digital environment and how do people recognize us. For example, in the same way that years ago a good way to identify someone was looking up that person’s address and phone number, as landlines become a thing of the past, it’s possible to validate someone’s identity online using data gathered from mobile phones. The majority of people wouldn’t share those with anyone else, so their mobile phone becomes a really strong representation of their identity in the digital world. Today, opening our mobile phones with our thumbprint or via facial recognition feels very normal (that’s already part of our digital identity). Something similar happens with voice biometrics, IP addresses and device information, sources for identity data that are gaining prevalence in the digital-first world. All this identity data that is generated in the background starts to add up and creates uniqueness, helping people get recognized digitally. Related Content The race to Digital Identification, a DataTalk with Eric Haller What is digital identity and why should we care  What are consumers the most concerned about when it comes to digital iterations

Did you miss these April 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. Consumers prefer 'invisible security' to passwords Using Experian's latest research, Venture Beat looks at the top three physical and behavioral 'invisible security' methods and why consumers no longer prefer visible online security such as passwords. Experian’s identity GM addresses industry’s post-Covid challenges How are CIOs and IT leaders dealing with new challenges created by the move of so much commerce from in-person to online? Information Week explores why security and identity verification are key priorities right now. Will passwords finally be a thing of the past? Consumers are more concerned about online privacy and identity theft than they were before the pandemic. CNP covers why warnings from data and fraud experts about the security of passwords have finally caught the attention of consumers. The future of secure data Eric Haller, Vice President & General Manager of Identity, Fraud & DataLabs, joins Bloomberg's Scarlet Fu to discuss the waning age of password protection and what the future of account security will look like. Consumers recognize biometrics security tops passwords, Experian says Biometric Update explores why physical biometrics like facial recognition and fingerprints are the preferred method of authentication when it comes to consumers according to Experian's latest research. Stay in the know with our latest insights:

The pandemic has enabled something close to a digital revolution, but how can businesses keep up with shifting consumer behaviors while ensuring fraud prevention is top of mind? Our latest Global Identity and Fraud Report takes a look at key consumer trends online and how businesses are responding.  

As the demand for digital exploded over the past year, companies responded in kind. Those who were prepared rapidly scaled their digital capabilities to accommodate the sudden influx of customers. And those who were caught off guard? Many found themselves scrambling to meet the moment. For both parties, the result has been an accelerated digital transformation that's benefiting businesses and customers alike. The focus has been primarily on improving the front-facing customer experience. But as we look ahead, the dramatic shift toward digital has also opened up opportunities to enhance the security and authentication experience too. By weaving authentication into the customer micro journey—the subsets of tasks that comprise the customer journey—we can strengthen security and decrease fraud. And the data collected along the way creates wholly new opportunities for personalization that improve the experience that much more. A brittle solution   The most common authentication approach requires customers to create usernames and passwords and provide personal information to verify their identities. Customers increasingly expect that companies will require them to provide this personal information to secure their accounts. In fact, in a recent Experian survey, 45% of customers said they'd be willing to share more personal data with companies. However, as long as passwords serve as the primary security tool, the approach remains vulnerable. First, it's unlikely that companies would (or should) continuously ask customers to provide passwords and verify their identity at various stages in the customer journey. This means that there's one big gate for fraudsters to scale and limited hurdles once they've gained access to an account. Certainly, passwords are unique to an individual, which is a positive. But they're also brittle, so they're easily broken or compromised. They don't flex with the user or the customer experience, nor do they offer security beyond a specific juncture. As we look to improve the customer experience continuously, we also need to provide end-to-end authentication. Doing so ensures you can recognize customers at every point of their journey, whether they're logging in or checking out. Securing the micro journey An end-to-end approach requires an understanding of customer micro journeys. It's not enough to provide a great digital experience, say via your account onboarding, but then have a completely different experience when a customer needs access to payment support. Considering micro journeys allows you to dive deeper into each component of the consumer lifecycle, and to understand the nuanced interactions that occur within each of those stages. Rather than just focusing on general approaches across Onboarding, Login Access, Transactions, etc., each one of these stages can be broken into smaller discrete steps (micro journeys), where opportunities exist to simultaneously delight the customer, and to create a much more nuanced risk management strategy. Then you can ensure that each task is seamless, easy, and personalized to the individual. Such a strategy can create deep and lasting customer loyalty. And identification remains a crucial part of every micro journey. No one likes to be at a party and have the host ask them their name repeatedly. The concept applies to security as well. Passive or invisible approaches to authentication eliminate this friction. For example, companies can continually authenticate the customer by employing physical or behavioral biometrics as they progress through the journey. The technology considers: How does the customer hold their device? What time are they usually active? How much pressure do they apply to the screen? Such data paints a much more nuanced picture of an individual—and one that's exceptionally hard to impersonate. And while privacy concerns arise, the type of data required to authenticate customers in this way is far less intrusive than asking for personal information. Customers are increasingly amenable as well. In our research, consumers cited physical biometrics, OTP, and behavioral biometrics as their preferred authentication methods. Passwords didn't even make the top 5. A holistic approach We're at a point in which forward-looking companies can rethink the complicated security dance they've been asking customers to do and move toward a more passive approach. It's an evolution that doesn't just improve the security experience; it also opens up massive opportunities for increased personalization. The data gathered across these micro journeys enables you to design experiences that truly meet customers' individual needs. That capability can become a significant differentiator and driver of growth. Getting there, however, requires a holistic view of your customer experience—one that includes security as a critical element. Our past three research waves show organizations are starting to deprioritize fraud prevention in favor of customer care and online offerings. This is a concerning trend: companies cannot forgo one for the other. Instead, organizations will need to consider both security and customer experience and creatively explore how to bring them together. It's a long-term strategy for customer retention and growth, one that requires a deep understanding of your audience as well as the solutions needed to enable passive authentication. For organizations, the journey toward passive authentication as part of the customer experience is more of a marathon than a sprint. But by focusing now on melding recognition and the customer experience together, organizations can ensure they're ready to deliver high-quality, less intrusive, and more secure experiences that customers are beginning to demand. Related stories: The evolution of digital identities What your customers say about opening new accounts online during Covid-19 and impacts on how you handle customer authentication 2021 Predictions: Consumer demand for digital will persist and the customer journey will be redefined  

Did you miss these February 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. Experian launches new anti-fraud platform for digitally accelerated world Financial IT covers the latest on tools to help businesses safely meet the rapid increase in demand for digital services and online accounts. Eduardo Castro, Head of Identity & Fraud, speaks to gaining confidence in preventing fraud while meeting these new business challenges. Experian helps Atlas Credit double approval rates while reducing credit losses by up to 20 percent This Global FinTech Series article provides insights on efforts to make the power of artificial intelligence accessible for lenders of all sizes. Shri Santhanam, Executive Vice President and General Manager of Global Analytics and AI, shares background on constantly-changing economic conditions impacting credit models and how to rapidly develop and deploy models to keep up. 60 percent of consumers are using a universal mobile wallet New research shows a continuing trend toward digital transactions and mobile wallet payments. Steve Wagner, Global Managing Director of Decision Analytics, speaks to consumer and business insights on the increased demand and what businesses need to consider to ensure positive customer journeys that support these shifts. Why digital identity and the customer journey is crucial for today’s businesses Steve Pulley, Managing Director of Data Analytics, explores business opportunities stemming from the massive increase in consumers accessing services online. Taking the right steps not only helps ensure business survival but sustainable success. The key is fundamentals including the customer journey and digital identity. How modern data strategies underpin the digital identity and authentication practices critical to digital transformation In this Datanami article covering our progression toward a 'contactless world,' modern fraud prevention is explored. Dealing with a tremendous amount of data to offer security, while bearing in mind customer convenience, requires sophisticated technology. Holistic approaches both improve operations and helps keep pace with fraudsters to protect customers. Stay in the know with our latest insights:

Since the Pandemic began consumers have been scammed more than ever before. From phishing emails, fake websites, and other scams intended to steal personal and financial information, to fake pharmaceutical goods or goods that never arrived, to account takeovers, multiple ways to defraud people have emerged or re-emerged at an alarming rate. It's an understatement to say that now more than ever customers need to be protected and it's the right time for businesses to improve some of their capabilities and offer their clients the secure experience that they expect. The results from our recent  global research study of changing behaviors and priorities throughout the pandemic show us just how important online security has become for consumers: Half of the consumers surveyed say they are very/somewhat concerned about conducting activities online; with the concern being most significant in India (69%) 4-in-10 consumers express increased levels of concern about online activities since C-19. The level of concern about consumer online activities and transactions has increased significantly since C-19 in India (61%), Brazil (57%), Singapore (53%), and US (44%) – one-fifth of consumers in the US and Brazil say that their level of concern has increased significantly. 42% feel that they are more of a target for online fraud now than before COVID-19, while only 25% feel safer about sharing personal information now than they did before COVID19 The largest sources of concern among consumers are credit card information being stolen (36%), online privacy (34%), identity theft (33%), and phishing email (32%). Consumers in India, Singapore, the US, and Brazil show generally more concern. Consumers have become increasingly positive towards more security measures One positive tendency that's been observed due to the increased security concerns is that consumers have become more comfortable with security measures being added online in order to protect them better: 55% percent of consumers expect more security steps when they are online and 49% want to have more visible security measures in place while on websites 47% of all consumers are expecting business to place strong security measures that they cannot see with another 40% expecting integration of features that recognize them during online purchasing without requiring them to share their personal data In fact, US consumers have increasing expectations on strong invisible securities (increased from 50% to 59% from June 2020 to January 2021) as well as identity authentication without sharing personal data (increased from 33% to 40% from June 2020 to January 2021) Consumers are accepting of biometrics and businesses should consider using it  It is not a surprise that fraud prevention methodologies such as physical biometrics (which is visible) and behavioral biometrics (which is invisible) have become more popular with the public. Both can be added as an extra layer in order to improve the authentication process by increasing its trustworthiness and efficacy. What’s also vital is that none of the two is compromising the user experience too much when compared with other more traditional authentication methodologies such as passwords or knowledge-based authentication: 74% of consumers are feeling very secure while using physical biometrics with another 16% feeling somewhat secure 66% of consumers are feeling very secure when being protected by behavioral biometrics with another 24% feeling somewhat secure So, as over half of businesses (55%) expect to increase their fraud management budgets in the next 6 months, it's recommended that they take notice of these trends and act now. What's even more important is that companies that invest in advanced customer authentication methods benefit from improved customer opinion, which feels like a win-win scenario for both parties involved: When physical biometrics are used, 57% of global consumers indicate that this enhances (somewhat/very much) their opinion of the organization When behavioral biometrics are used, 53% of global consumers say that they have a better opinion (somewhat/very much) about the organization implementing them Related stories: Global Insights Report Wave 3 (February 2021)  Global Insights Report Wave 1 (June/July 2020) What your customers say about opening new accounts online during Covid-19