The expansion of online lending has not only proven vital to the growth of the digital marketplace, but it’s also contributed to the expansion of the economy overall. As a result, online lenders are targets for bad actors to swindle unsuspecting organizations out of money and disappear without a trace.
Minor or sporadic fraud can be damaging, but a coordinated attack by a sophisticated fraud ring can devastate even the mightiest lending institutions. To secure growth and ensure longevity as an online lender, it’s crucial that your digital defense strategy includes robust, cutting-edge fraud detection tools.
There’s never a bad time to reexamine your organization’s approach to fraud detection. Familiarize yourself with these three tools online lenders can use to catch fraudsters at the point of attack and stop fraud in its tracks.
ID Verification
Like so many online services, lending hinges on identity verification. Rapid, precise ID verification is absolutely vital to establishing and maintaining superior new account fraud detection capability for your organization. Some lenders opt for facial recognition, while others depend on systems that simply verify PII. While nothing can replace PII, the right tools can support your goal of accurate ID verification by taking other factors into account, beyond the information a user provides.
The problem with PII-based ID verification is that so much compromised PII is available to the bad guys on the dark web. They can simply buy troves of personal information and use those stolen profiles or even combine various details from different users into synthetic identities, which can be difficult for outdated software to detect.
Behavioral Analytics
Online lenders and other companies throughout the fintech space are increasingly seeing value in leveraging behavioral analytics tools. This type of software passively reads each user’s body language—their taps, swipes, and keystrokes—to gauge their familiarity with the PII they’re using to complete your site forms.
Behavioral analytics tools can pinpoint when a user isn’t familiar with their own PII. Then, these tools flag suspect users in real time so your step-up verification measures can intervene without delay. Fraudsters go to great lengths to conceal their identities, but they can’t hide their behavior, which is why behavioral intelligence tools are quickly becoming an essential element of modern fraud detection systems.
Crowd-Level Monitoring
One of the biggest threats to online lenders of any size is fraud ring activity. In recent years, fraud rings have realized just how much they stand to gain from a well-executed, cunning attack on inadequately defended targets. To secure growth as a lender, you need to go beyond deterring potential threats. You need software that harnesses the power of the crowd to spot fraud rings before they can act.
The leading behavioral intelligence tools visualize crowd-level behavior. They identify spikes in user activity as risky in real time, so you can see fraud rings coming from a mile away with immediate alerts. The best behavioral analytics software will even deliver every relevant user session ID with each alert.
About NeuroID
With compromised PII and devious strategies like synthetic identities at their disposal, digital fraudsters are more cunning and aggressive than ever before. That’s why leadership teams are turning to NeuroID for a proactive approach to fraud detection that leverages cutting-edge technology. That way, you can catch would-be fraudsters at the point of attack. Instead of relying on PII to verify identity, NeuroID harnesses the power of behavioral analytics, passively monitoring every user’s taps, swipes, and keystrokes as they interact with your site forms in real time. By reading the digital body language of each user to spot risky activity, NeuroID delivers superior ID verification based on behavior to help your organization stay ahead of fraud activity.
Lend with confidence, thanks to superior fraud detection from NeuroID at https://www.neuro-id.com/
Original Source: https://bit.ly/3Z4WUNJ
