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Rapid digital transformation over the past 20 years has enabled banks to both get closer to their customers as well as expand their customer base. However, it has also meant extra competition – particularly with challenger banks entering the scene.
Across the board there has been a steely focus on creating a seamless user experience in order to attract and retain customers.
This means priority has consistently been placed on online usability over customer security. Yet, by making it as easy as possible for customers to open new accounts and bank online, banks are simultaneously opening their doors to criminals.
Fraudsters have the upper hand
With fraudsters supported by a cybercrime economy worth $1.5trillion, and with 8.4bn sensitive records being exposed globally in Q1 of 2020 alone, finding a solution to online banking fraud is not something that can easily be ignored.
The fraud industry has been digitalizing right alongside the banking industry, and at an alarming rate.
Every time financial institutions and their fraud teams come up with a way to challenge and stop fraudsters, the criminals innovate and find a new and more advanced method of attack.
How to break the cycle
Financial institutions need to find a way out of this vicious cycle, with a permanent solution to online banking fraud that won’t just work now, but a long way into the future.
The only way to do this is by not simply reacting to fraud that has already occurred but to get one step ahead, predicting and preventing future fraud attacks by deploying an AI-based anti-fraud solution incorporating behavioral biometrics.
To find out more about how to future-proof your business by implementing a proactive approach to fraud prevention, make sure to read our new whitepaper: A brief history of banking fraud: Why financial firms need biometric profiling.
The whitepaper discusses a detailed history of the relationship between fraud and fraud prevention, why this evolution means that behavioral biometrics is the only tool that can effectively and comprehensively fight fraud, and why, as KPMG reports, 33% of global financial institutions are now investing in behavioral biometrics tools.
Fraud should not be an accepted by-product of online banking, and the global banking industry has spent too long playing catch-up. It’s time to cut fraud off at its root.