Revelock highlights 5 key digital ID strategies to tackle fraud
Revelock recently held its User Conference to discuss online digital ID fraud prevention strategies as online banking trends keep on growing, also spurred by the pandemic.
During the event, the panel pinpointed five particular trends related to online fraud, together with advice aimed at mitigating their impact on companies’ revenue and security infrastructure.
The first of these trends relates to poor digital identity security hygiene practices, such as reusing passwords, which is increasingly leading to data and identity theft. In this regard, Revelock mentioned synthetic ‘supply chains,’ systematic and organized attempts by several actors to spoof credit lines and create other fake ID data to back up synthetic identities.
Secondly, the internet security company affirmed that the responsibility of protecting users’ funds once they are in a bank should fall upon the financial institution, not only from a regulatory perspective but also a security one. In other words, banks should replace legacy digital identity security checks using passwords and PINs with more secure authentication tools, like behavioral biometrics.
The third highlight from the Revelock User Conference relates to collaborative efforts, and the establishment of more ‘fraud fusion centers.’ These groups would be composed of different departments and channels (e.g. web, app, card payments), and would enable an immediate, coordinated response to potential attacks.
During the event, the panel also discussed the role of automation in preventing fraud attempts. According to Revelock Advisory Board member Janet Rathod (formerly FBA), time is of the essence in reacting to fraud signals, and artificial intelligence (AI)-based intrusion detection and prevention systems can go a long way in filtering unnecessary alerts, thus allowing fraud analysts to focus on more relevant and urgent threats.
The last point addressed by the Revelock panel relates to risk calculation and how financial institutions can balance security with ease of use. The experts at the User Conference generally agreed that while a certain level of friction is generally accepted, it sometimes needs to be stepped up to ensure a company is protected from fraud at all times.