Increased Mobile Device Security Doesn’t Mean Increased Friction

Posted March 22, 2017

Increased Mobile Device Security Doesn’t Mean Increased Friction

Who says that reducing fraud means increasing friction during mobile transactions? Unfortunately, this is a common perception among companies and consumers.

Financial services companies and other similar organizations want to increase the security of their mobile apps and offerings to meet the demands of today’s digital consumer.

While 61 percent of Millennials say mobile is their preferred way to bank, 29 percent report their security concerns have increased during the past year. Of those who express such anxiety, nearly half say they’ve cut back on mobile banking and transactions in favor of the desktop services, which they perceive as more secure. As for fraud incidents, 18 percent of Millennials have actually left their bank because of a breach—nearly double the rate for those in the 35-to-55 age group.

However, companies fear that increasing fraud protection on mobile apps and transactions this will lead to additional authentication and step-up challenges.

And this increased friction is something consumers have shown to dislike immensely. One in 10 consumers hate step-up challenges. Of those, nearly 30 percent changed banks and 26 percent use mobile banking less often because of it.

For institutions, this dichotomy creates a quandary—a conundrum if you will. How do you strike that right balance between mobile users’ need for speed while hitting the breaks on fraud?

A growing number of organizations are discovering they don’t have to choose at all.

No More Trade-Offs

Using ThreatMetrix Mobile SDK, organizations can cut fraud without adding user friction.

This lightweight software development kit for Google Android and Mobile iOS devices is easily integrated with mobile applications and services, detecting breaches and verifying the trustworthiness of a device being used in a transaction.

Devices showing high-risk anomalies are flagged for review, while legitimate users are recognized in real time so transactions can be accelerated without additional authentication.

Calls to ThreatMetrix Mobile are inserted at strategic points in a transaction—usually during login, payment and account registrations. The mobile device is then profiled to provide robust levels of protection by assessing:

  • Application integrity: Detects whether a device has been tampered with or modified, either through malware or a malicious user
  • Advanced persistent device ID: Recognizes devices instantly, even if they’ve been reset or if an app has been re-installed
  • Malware detection: Identifies known, trusted apps seamlessly and in real time, along with any containing malware or a poor associated reputation
  • Location services: Includes latitude and longitude information, and IP addresses are compared with physical locations to detect the use of proxies or VPNs to mask intentions
  • Anomaly and device spoofing detection: Detects emulation, tampering, root/jailbreak cloaking and other anomalies that may indicate fraud
  • Dynamic confirmation and updates: Mitigates the need for you to re-release your applications

More Than Mobile First

ThreatMetrix Mobile is underpinned by the ThreatMetrix Digital Identity Network to leverage shared, real-time threat intelligence from millions of daily consumer interactions around the globe to detect fraud at lightning-fast speeds.

According to organizations that have deployed ThreatMetrix Mobile, the solution instantly recognizes good customers and bad actors with 95 percent accuracy, accelerating and enhancing the experience for legitimate transactions while stopping fraudsters cold.

This helps drive revenue growth by reducing friction and facilitating faster, higher transaction volume with less manual reviews.

It’s mobile device security that helps you go beyond a “mobile first” experience to deliver a “customer first” experience that pays serious dividends—fast and friction-free.

To learn more, check out our new whitepaper, “Securing Mobile Applications in an Evolving Fraud and Threat Landscape.”

Andreas Baumhof

Andreas Baumhof

Chief Technology Officer, ThreatMetrix

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