The online marketplace is rife with bad actors, and your organization needs to expand its digital presence to remain competitive. Many companies use the same old formula for identity verification—offer an application for new users and decide whether they’re genuine based on the PII they submit. You may not know it, but fraudsters have been studying these digital defenses for years and are more than capable of getting past them. This leaves unprepared organizations open to fraud ring attacks, bot attacks, and more. However, there are innovative tools you can incorporate to modernize your new account fraud detection systems. Read on to learn about the pitfalls of PII-based systems and what strategies your company should use instead.
Compromised PII is Widely Available
Whether through data breaches, phishing attempts, or even more devious means, the bad guys are constantly working to steal PII. Stolen and otherwise compromised PII often ends up being sold on the darknet, where it’s available to the highest bidder. The buyers aren’t exactly altruistic, either. Once they get their hands on compromised PII, fraudsters use it to fool digital identity verification systems and take advantage of vulnerable organizations. One innovative method involves combining pieces of PII from different users to create a synthetic identity. Because all the individual details are genuine—although the hybrid profile is not—a synthetic identity can be difficult to spot using traditional tools.
Post-Submit Data Offers a Static User Analysis
Before a user can create an online account with your organization, they must first pass a test: your application process. If you grade the completed test without looking beyond the four corners of the document, you have no way of knowing how the applicant arrived at their answers or whether they tried to cheat. A completed application doesn’t necessarily tell you anything about the person who filled it out. All you’re seeing is who they say they are. By judging applicants solely on their post-submit data, your organization is giving them an opportunity to cheat on this test.
Bad Actors Are Evolving Their Methods
Unfortunately, you have more to worry about than individual fraudsters. Fraud ring attacks, bot attacks, and a wide range of digital threats plague the online marketplace. Some serious bad guys even do their homework and learn about step-up verification policies used by their targets. New account opening fraud is no joke, and by the time you notice the signs of a fraud ring attack, it’s usually too late. Plus, the detection tools used by many organizations tend to lock out genuine customers in addition to bad actors. According to one estimate, these false positives could cost digital merchants nearly half a trillion dollars over the next two years alone.
Behavioral Intelligence Offers Superior Fraud Detection
Instead of giving fraudsters a chance to cheat the system and hoping you manage to catch them afterward, what if you could look over their shoulder as they fill out their application and catch anomalous, risky behavior in real-time? That’s precisely what cutting-edge behavioral intelligence tools do. A genuine applicant typically would not have trouble recalling their name, phone number, or email address, right? But if a user filling out your form retypes one of these fields multiple times, that’s likely a sign of a fraudster at work. By analyzing digital body language and flagging risky behavior in real-time, behavioral intelligence tools can enable rapid intervention by your step-up verification systems and catch the bad guys before they even have a chance to complete your application.
About NeuroID
It’s a simple fact of doing business online: Bad actors are always sizing up digital defenses and devising new strategies for taking advantage of vulnerable organizations. Fraudsters develop increasingly sophisticated methods of posing as genuine customers to slip past old PII-based detection systems and target your company. But with the power of behavioral analytics tools from NeuroID, you can seize the initiative and detect fraud indicators before criminals have a chance to cheat you. The groundbreaking technology in their ID Crowd Alert™ and ID Orchestrator™ tools analyzes digital body language and pre-submit data to spot risky activity in real time. With the ability to detect fraud rapidly, your step-up verification systems can intervene and effectively protect your organization.
Take your organization’s fraud detection to the next level with NeuroID at https://www.neuro-id.com/
Original Source: https://bit.ly/3fyzsWX
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