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Prevent Fraud With Unhackable Certainty

In 2019, 4.4 million adults experienced an account takeover (ATO) attack. In 2020, one-third of financial institutions saw at least a 10 percent increase in the rate of ATO attacks.

In 2019, the average ATO incident cost the compromised institution $1,200, a 33 percent increase over 2018. Not only are the costs increasing, but fraudsters are working hard to discover new avenues of attack—and are getting better at covering their tracks.

Banks and credit unions are feeling the pressure. According to a survey conducted by American Banker on behalf of Neustar, more than half of banks (56 percent) and credit unions (53 percent) believe that their financial institution is more vulnerable to fraud compared to the 12 months prior.

At the same time, financial services organizations are trying to prevent excessive friction from damaging the consumer experience. Authentication sets the tone for customers’ feelings toward brands. “More than any other aspect of a customer’s journey, ‘failing to authenticate’ drives down customer satisfaction and overall brand perceptions.”1 Burdensome security measures, such as Knowledge-Based Authentication (KBA) questions, increase consumer abandonment and loss of lifetime value.

Forward-thinking financial organizations are improving fraud prevention and customer experience with dynamic data elements. For example, the attributes of a mobile device are stable and reliable. They cannot be spoofed or hacked. A phone is either active, or it is not. It is prepaid, or it is not. The device history, and whether the number has been diverted, are attributes specific to that device and constantly give clues as to whether consumers are who they say they are. Dynamic device data, when used in combination with online and offline data, significantly increases fraud prevention and the ability to authenticate good customers.

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1. McKinsey Digital, ” Is cybersecurity incompatible with digital convenience?”

Get this white paper to discover:

  1. The seven common authentication data types used by financial institutions, and the strengths and weaknesses of each
  2. Which data types enjoy wide adoption, and which have yet to catch on or are losing favor, according to a survey by American Banker on behalf of Neustar
  3. Why dynamic data can't be spoofed or hacked, and how to find and use it
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