October 16, 2018
October 9, 2018
Financial services transactions are high value targets for cybercriminals, fueled by large-scale security breaches that have flooded the market with easily available stolen identity data.
This large global bank was profiling about 300,000 online applications per month (including new accounts, mortgages and loans) but fraudulent applications were rising. The bank needed a more holistic approach to identify the use of stolen or spoofed identities in real time, without impacting legitimate customers at a sensitive point in their transaction.
The bank estimated its fraud losses could peak at around $60 million per year by 2018 if it didn’t stem the tidal wave of fraud attacks.
It deployed ThreatMetrix to augment its existing system with digital intelligence from the ThreatMetrix Digital Identity Network. This allowed the bank to detect fraudulent online applications with pinpoint accuracy in real time, while genuine customers experienced virtually no friction:
The bank was experiencing the full spectrum of financial fraud, particularly around new applications using stolen or spoofed identities. Fraudsters have become adept at knitting together convincing identities using easily available personal information from large data breaches, meaning static identity assessment methods were no longer effective.
Fraud prevention was damaging the bank’s reputation: legitimate customers were becoming frustrated with step-up authentication designed to reduce fraudulent applications. Manual review rates were soaring as the bank’s existing multifactor authentication (MFA) solution failed to keep pace with the sheer volume of fraudulent transactions.
The bank needed a solution that could look beyond basic identity information, analyzing the full transaction context, including the health of the connecting device, behavioral characteristics as well as other high-risk anomalies such as location cloaking or device spoofing that might indicate fraud. Crucially it needed to ensure that any additional solution did not impact the application experience of legitimate customers.
The bank augmented its existing systems with key ThreatMetrix capabilities, which dramatically reduced fraud losses, while improving customer satisfaction and securing long-term revenue.
The ThreatMetrix solution is underpinned by the ThreatMetrix Digital Identity Network, which harnesses global shared intelligence from millions of daily consumer interactions including logins, payments and new account applications. Using this information, ThreatMetrix stitches together a user’s true digital identity by analyzing the myriad connections between devices, locations and anonymized personal information. The bank could therefore:
This was achieved by leveraging the following key intelligence from the ThreatMetrix Digital Identity Network to authenticate a user’s true identity: