How to Enhance Your Fraud Detection Strategies Using Behavioral Analytics

By

If your organization is searching for new ways to thrive in the digital space, you and your team must be realistic about the challenges fraud presents, even if it hasn’t yet directly affected you. Fraudsters are more motivated, diligent, and creative than ever. Threats such as account opening fraud, account takeover fraud, and others are constantly adapting to gain an advantage. Your fraud detection strategies should evolve to stay at least one step ahead. Behavioral analytics offer the cutting-edge step your business needs to detect fraud attempts in real-time and achieve early intervention. Here are a few reasons why your organization should be using behavioral analytics.

PII-Based Verification Is Easily Defeated

The stark reality of digital ID verification is that fraudsters are running circles around systems based on static PII. The biggest reason? A large amount of compromised PII is floating around on the internet, available for purchase by bad actors looking to further their nefarious purposes. That means stolen and even synthetic identities—forged using PII from multiple users–are constantly being used to commit new account fraud. Stolen PII isn’t even necessary to defeat these verification systems. Fraudsters can even use their own information to create new accounts, lie low by exhibiting typical behavior, and then commit fraud and disappear. PII-reliant technology simply doesn’t cut it.

 Fraudsters Can’t Fake Digital Body Language

Whereas synthetic identities comprised of stolen PII can be the key to just about any digital lock, bad actors can’t fake the way they input fraudulent information. For example, if a fraudster is filling out an application but hesitating over a field that should be an easy answer for any genuine user—say, their date of birth or email address—this is a sign that they may be committing fraud. For a superior new account fraud prevention strategy, behavioral analytics look for precisely this type of red flag, which even the most sophisticated synthetic identities can’t disguise.

 Behavioral Analytics Cover Many Types of Fraud

Because behavioral analytics examine pre-submit data based on how a user acts while working on an application, no combination of compromised PII can help fraudsters get past these systems. Whether a bad actor is crafting a synthetic identity to commit new account fraud or putting their phishing spoils into action through account takeover fraud, behavioral analytics systems detect indicators of fraud ring activity or even bot attacks. Behavioral analytics offer enhanced fraud detection by focusing on behavior instead of post-submit PII.

 Early Detection Means Early Intervention

With behavioral analytics, you’re essentially looking over the shoulder of your website’s users as they fill in application fields. If you see one of them repeatedly retyping personal details like a phone number or email address, you know right away that something could be wrong. Behavioral analytics software offers proactive solutions such as new account opening fraud detection and rapidly directs users exhibiting risky behavior to your step-up verification. With a robust fraud detection system hinging on behavioral analytics, your organization can detect fraud and take the necessary steps to stop it before it starts.

 About NeuroID

 The growth of your business starts with trust: the ability to conduct business confidently and securely in our ever-changing digital world. But with the Digital Identity Crisis in full effect, how do you strike the right balance between growth and security? NeuroID stands for the future of identity authentication online. They use groundbreaking technology to passively analyze behavior, discerning between genuine users and bad actors, including fraud rings and bots. These aren’t the same outdated, easily-fooled PII-based measures you may have seen before—NeuroID analyzes digital body language to offer cutting-edge fraud detection. NeuroID visualizes crowd activity at scale and makes critical judgments in real time, rapidly referring risky users to your organization’s step-up verification so you can detect fraud before it starts.

 Enhance your organization’s fraud protection strategies with NeuroID at https://www.neuro-id.com/

Comments

Post a Comment

Popular posts from this blog

3 Essentials for Expanding Your Online User Base This Year

By
Image
If expanding your user base is key to achieving your organization’s goals this year, you may be preparing to implement a new user acquisition strategy. There are many ways to incorporate new techniques into your current processes, and your plan may ultimately be as unique as your business itself. Regardless of your organization’s size or industry, there are a few methods that everyone can depend on for tangible results. Whether you’re focused on growing the user base for your app or your site—or both—it’s best to start with a tried-and-true game plan rather than trying your hand at the uncertainty of trial and error. Remember, you don’t want to get stuck with tunnel vision. As you develop your user acquisition strategy, be sure to factor in robust new account fraud detection tools. Start planning with this list of three surefire means of expanding your user base without inviting attacks from bad actors. Pursue App Store Optimization If you want people to find, download, and regula...
Read more

4 Reasons PII-Based Fraud Detection Systems Are Quickly Becoming Obsolete

By
Image
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,...
Read more

Common Types of New Account Fraud and How to Identify Them

By
Image
Each day, you can encounter all types of digital bad actors working in different locations worldwide, but they all have one thing in common: They’re looking for any vulnerability in your systems they can exploit to carry out their nefarious schemes. Once they gain access to your services, fraudsters can swindle you in practically no time. Or they can play the long game and linger for years before disappearing without a trace. New account fraud, in one form or another, is one of the tried-and-true methods fraudsters use to slip past your detection software. That’s why using top-notch ID verification measures is essential to help your business weed out users with malicious intent. If you’re concerned about identifying fraud, here are the fundamentals of new account opening fraud you should know. Armed with this information, you can better equip your business to catch bad actors before they strike. Stolen Identities It’s not the oldest trick in the book, but it’s close. Stealing some...
Read more