Behavioral biometrics, analytics options aplenty as financial fraud gets more complex

As businesses play tug-of-war with increasingly sophisticated fraud tactics, the cost of fraud has risen to new levels, now amounting to nearly 7 percent of revenues for many companies, according to a recent analysis by TransUnion. U.S. firms, in particular, have reported a total of US$112 billion in loss due to fraud in the past year. The financial strain is pushing companies to adopt technology to safeguard their operations, and artificial intelligence (AI) is emerging as a key player in the battle against financial crime.

AI-powered AML and fraud detection systems

To address escalating threats, AI-driven software is being integrated into anti-money laundering (AML) and fraud detection platforms. One notable example is the collaboration between Napier AI and ThreatMark, which has developed a fraud detection package aimed at streamlining compliance and enhancing protection against illicit financial activities.

The partnership leverages AI to analyze data in real-time, in a bid to detect anomalies that could indicate fraudulent behavior.

Commenting on the joint venture, Michal Tresner, CEO of ThreatMark, says: “This partnership enhances the way financial institutions protect themselves and their customers. By combining ThreatMark’s behavioral biometrics with Napier AI’s cutting-edge AML capabilities, we offer a robust defense against the most complex fraud schemes, while also providing dynamic, real-time risk assessment of clients’ behaviors and transactions.”

Meanwhile, Experian UK&I has teamed up with Sardine, a fraud prevention startup, to bolster the capabilities of its fraud detection tools in the UK with behavioral biometrics and device intelligence technology. By incorporating Sardine’s insights into their platform, Experian plans to improve its ability to prevent fraudulent transactions.

Speaking about behavioral biometric technology’s role in fraud prevention, David Bates, managing director credit and verification services at Experian UK&I, explains: “By deploying it throughout the customer journey, businesses can act with confidence that their fraud prevention systems are well-placed to deal with increasingly sophisticated fraud attacks.”

Continuous fraud detection through behavioral biometrics

As organizations strive to detect and prevent fraud before it happens, behavioral biometrics and continuous fraud detection technologies are gaining traction. BioCatch introduced a rule simulator that helps businesses test and optimize their fraud detection strategies in real-time, with the goal of minimizing disruptions and operational chaos.

The rule simulator in BioCatch’s rule manager offers a simulation feature that enables fraud analysts to anticipate the potential impact of changes in the online environment by providing a preemptive analysis of the outcomes.

Global intelligence networks in fraud prevention

On a global scale, fraud intelligence platforms are also involved in enhancing detection and prevention capabilities. Trulioo recently launched its global fraud intelligence capability, which draws on a network of data points to identify fraud patterns across borders.

The capability provides coverage across markets by combining risk indicators with consortium data, velocity monitoring and real-time signal monitoring, through a single API. Trulioo says its fraud intelligence capability delivers over 90 percent coverage for email and phone predictive risk insights in global markets.

“The fragmented fraud prevention market forces businesses to rely on multiple point solutions to verify identities and monitor risk across regions,” says David Liu, Trulioo senior vice president of fraud and risk.

“Trulioo Fraud Intelligence eliminates that burden. Large enterprises serving millions of customers can avoid complex, costly integrations by harnessing a unified, global capability that fights fraud during onboarding and beyond.”

Trulioo fraud intelligence will launch in 195 countries, for industries like payments, banking, and marketplaces.

Article Topics

behavioral biometrics  |  BioCatch  |  biometrics  |  Experian  |  financial crime  |  fraud prevention  |  Sardine  |  ThreatMark  |  TransUnion  |  Trulioo