Cross-channel fraud exploiting lack of centralized tracking approach, BioCatch says
Banks and online retailers need authentication technologies that can track users across multiple digital channels to fight the growth of cross-channel fraud, BioCatch says in a blog post. Cybercriminals are taking advantage of the often rushed efforts by financial institutions and online merchants to provide omnichannel payments, stealing personal information in one channel and using it to commit fraud in another, the company says.
“Most fraud detection tools used by banks and online retailers focus on securing only one channel. They don’t monitor for fraud across channels in real-time. Your slick new mobile app makes authentication frictionless while your desktop solutions remain clunky and outdated, relying on passwords and 2FA,” the company writes.
“A disjointed approach makes it harder to spot cross-channel fraud. What organizations need is a centralized way to track fraud across channels. Behavioral biometrics provides that.”
Behavioral biometrics can be applied across all channels to catch cross-channel fraud in real time, the company says. The technology also removes friction from the user experience, and lowers the rate of false positives by transferring user profiles between digital channels to allow businesses to de-escalate situations based on risk scoring.
BioCatch also pitched behavioral biometrics as the most effective second factor for PSD2 compliance to stop fraud through third parties in a recent entry in its posts on the advantages of the modality.
Banking industry veteran Jay Mandelbaum recently joined the BioCatch Board of Directors.