Enhancing the Customer Experience with Behavioral Analytics
Posted June 28, 2018
In this episode Frank is joined by Neira Jones, an independent advisor and international speaker. They discuss behavioral analytics and the power to predict.
Frank: Hey everybody, Frank Teruel here again with another episode of Digital Identity 360. I’m honored to have Neira Jones here with me today. Neira it’s a pleasure, thanks for joining.
Neira: Well I’m absolutely delighted, thanks for inviting me. Not only is it a fabulous venue, it’s a fabulous conference with a topic that is extremely close to my heart.
Frank: Sure, the power to predict.
Neira: Exactly right!
Frank: How are you seeing that within your customer base? As you let that convergence of technology and identity and all those things. How are you seeing that play out?
Neira: It’s playing out in various ways. Interestingly, when I saw the theme of the event, the power to predict, I kind of wondered why you actually chose that particular theme. Because one of the very early times, which was I think about three years ago, when I was on the same stage as ThreatMetrix, talking about payments and identity. Because again, it is the gift that keeps on giving. And I was actually putting up slides in relation to research by Gartner, which at the time was called Gartner 2020. Gartner 2020, that was a 2014 report. And funnily enough, when I look at what they did in there, I was like, “They were so very right.” And here we are. And they did say rules and static features are kind of passé, or will be passé by 2020, and it will all be about behavioral analytics and realtime and predictions and so on and so forth, and this is what’s going to happen. Here we are 2018, earlier than they actually predicted. So that prompted me to look at what Gartner was thinking on the topic now. And truly, they actually have a new report out, and that new report shows that very neat progression from hindsight to prediction.
Frank: Sure, because it’s a natural evolution, right? At the end of the day, if I understand who you are online, if I understand how you’re interacting online, mobile device versus laptop, and how you’re behaving. The next natural conclusion is, can I predict behavior based on that past information?
Neira: Increasingly now, we’ve seen the rise in technology, and how mobile has now actually overtaken laptops and other devices-
Frank: Big theme of this conference is the move to mobile.
Neira: It is, and we as individuals, not necessarily consumers, we don’t want to waste time. And I expect the organizations I interact with to know me in some respect. If I work for example in London, and I regularly travel to Paris, this is what I do. I do that all the time.
Frank: Why is there friction?
Neira: Why is there friction? Because I bought something for 20 quid in London, and I do exactly the same the next day in Paris, and suddenly I have problems. I think this is unacceptable.
Frank: Now here’s what’s cool though. Take that same idea, your impatience with friction. Why can’t the networks say, “You know what, Neira for the first time did something that’s different or anomalous. But still predictably good behavior for her.” And that’s the power of this. You’re not stuck with a construct that says it’s only based on past behavior.
Neira: Absolutely. And it absolutely has to be dynamic, because in between hindsight and prediction, there are of course very good technologies. But it’s so very well, having really funky authentication technologies and so on and so forth. But you could potentially authenticate a fraudster. You could potentially authenticate a synthetic identity, and what good is that?
Frank: It’s so interesting you said that, because our latest Cybercrime Report in Europe shows a kind of interesting change. Prior to now, it was really card not present fraud and those kinds of things. We were talking just before we got started today, on this concept of millennial data being harvested and held patiently, until it can be used in the future. So think of the idea, I steal your 15 year old kid’s identity. I hang onto it for two years, three years, ten years I think is what they said. Then I harvest it and use it later. Within that construct, we’re seeing a rise in those attack vectors today. Synthetic identities and identity spoofing as being a higher vector, manifesting itself in new account originations more than account logins.
Neira: Yep, and it’s funny you should say that, because I was looking at the ThreatMetrix Cybercrime Report Q4 2017. Q4 2017, obviously you had account creations and account logins, and others. Now obviously you’ve released a Q1 2018 Report and I looked at it. Account creation jumped up to 31% from 18%, I mean that’s a significant increase, to your point.
Frank: Here’s why, think of the old models. I engineer a bot attack, I scrape millions of credentials, I test them, and then I go away. You and I, when we’re compromised will get a notice. We’ll go change our IDs, we’ll get a transaction monitoring I’m not sure that really helps with the credit bureaus. But nonetheless we get some monitoring mechanism. If I harvest a millennial’s data, they have no idea, they’re not using it. So it’s years and years … The need to come back and compromise that new account origination, you can do it with a legitimate ID. And the banks gonna go, “Hey, this legitimate, no history.”
Neira: Yup, and it’s not as if there is a shortage of legitimate IDs on the black market.
Frank: That’s true. What is your biggest takeaway from our conference this year?
Neira: My biggest takeaway certainly is the realization within the audience. That really prediction, and real time, and that combined with as seamless as possible a customer experience. Because after all, we’re talking about a frictionless customer experience, there is no such thing really. You just in some cases want that little bit of friction. If only because consumers expect it somewhat, so you want to make them feel safe. That willingness to look at these new technologies, but certainly very interestingly the case studies, the real customer experiences that were on stage today were enlightening. And of course Andreas with smart learning. For me, one interesting point with the identification of mules and mule networks. That was fantastic.
Frank: We have one customer here who was telling me that they have a 300% increase in mule detection, simply by using this global identity network to identify. It’s a pleasure having you here, a delightful time chatting. Thanks very much. Appreciate it, thank you.
Neira: Thank you very much, thank you.