ATO prevention remains top focus for key biometrics firms

Account takeover (ATO) fraud continues to be a concern, and as a result, digital identity industry leaders are introducing new technologies and strategies to protect consumer accounts across the financial services landscape. Recent advancements in behavioral biometrics, risk management tools, and real-time fraud prevention aim to thwart increasingly sophisticated fraud tactics.

Liminal and Socure recently teamed up to explore how identity systems could reshape how businesses protect digital accounts. In a recently aired webinar titled “Identity-Centric Strategies to Combat Account Takeover,” Sam Bouso, senior director of product management at Socure, and Cameron D’Ambrosi, senior principal at Liminal, address the growing need for identity strategies in ATO prevention.

The webinar looks into the rise in ATO fraud, revealing how sophisticated fraudsters exploit weaknesses in traditional security measures, particularly weak or compromised credentials.

BioCatch and Transmit Security in the Liminal ATO prevention league

A player in the fight against ATO fraud, BioCatch, reported a 40 percent year-over-year growth in annual recurring revenue (ARR) in Q3 2024. BioCatch has expanded its global footprint, onboarding 31 new customers in the quarter, and partnering with banks to detect and prevent account takeovers in real-time by analyzing unique user behaviors.

BioCatch’s biometrics platform was also highlighted in Liminal’s recent report on “Behavioral Biometrics for ATO Prevention in Banking.” The report ranks BioCatch among the top vendors for ATO prevention in financial services, alongside Feedzai, Socure, Prove and LexisNexis, Callsign, NeuroID, Ping Identity and Entrust. The report emphasizes the role of behavioral biometrics in tackling identity fraud, particularly for banks that face rising risks from digital account takeovers.

In related news, Transmit Security was recognized by Liminal as a leading ATO prevention provider. The company’s identity orchestration and passwordless authentication tools have positioned it among the key choices, alongside providers mentioned above, for enterprises seeking to prevent ATO attacks.

Transmit Security’s focus on passwordless complements the industry’s shift towards biometrics and behavioral analysis.

Sift ATO prevention suite

Also in this quarter, Sift unveiled enhancements to its ATO prevention technology, expanding coverage to protect users across their entire customer journey. Sift’s capabilities are integrated with Customer Identity and Access Management (CIAM) platforms, with the goal of helping businesses to detect and mitigate ATO risks at every interaction point. By combining machine learning with real-time data analysis, Sift’s new suite aims to prevent fraud attempts before they escalate.

“Account takeover is a deeply connected problem that impacts multiple facets of a business, from cybersecurity to finance,” says Raviv Levi, chief product and technology officer at Sift.

“Traditional approaches often result in fragmented data and incomplete insights, making it difficult to fully understand and mitigate the impact of ATO. Sift’s unique approach unites departments and data, providing a single source of truth for ATO prevention and removing barriers to revenue.”

Ingo and Sardine partner on zero-liability fraud guarantee

In theme with fraud protection, Ingo Payments and Sardine recently announced a partnership to introduce “Risk-Managed Instant Account Funding,” a tool backed by a zero-liability fraud guarantee. The joint offering combines Sardine’s fraud detection technology with Ingo Payments’ real-time funding capabilities.

This collaboration offers instant card and ACH funding, which is supported by real-time risk management that aims to detect and prevent fraud before it impacts issuers.

“At Sardine, we make sure fraud prevention happens before a transaction is even completed, using real-time data and machine learning to stay ahead of the game. This partnership gives issuers a solution that not only speeds up funding but adapts intelligently to new fraud tactics, so they can move fast without worrying about risk,” explains Soups Ranjan, CEO of Sardine.

A recent blog post by Sardine highlights device intelligence as a defense mechanism in fraud detection. Device intelligence goes beyond basic device tracking by examining unique characteristics of devices and how they interact within networks. The approach is for businesses to detect abnormal behaviors, even when users or fraudsters are logging in from seemingly legitimate devices.

Sardine’s device intelligence analyzes factors like IP address behaviors, device fingerprinting, and network anomalies to create a picture of account access patterns, in a bid to offer another layer of defense that complements identity-centric measures.

Article Topics

banking  |  behavioral biometrics  |  BioCatch  |  biometrics  |  fraud prevention  |  identity verification  |  Liminal  |  Sardine  |  Sift  |  Socure  |  Transmit Security