December 5, 2018
November 29, 2018
Following precedents set by the eCommerce and financial services industries, insurers are being coerced down a path to digital transformation by Insurtechs who are disrupting the industry. Established and emerging players are challenging traditional insurance firms through technological innovation by building digital products and fulfilling consumers’ changing expectations.
Identity theft, policy fraud and fraudulent claims are top concerns for insurers. It is becoming more and more critical to ensure that the person logging in to view a policy, edit personal details or make a claim is the legitimate, trusted customer and not a fraudster masquerading as the policyholder.
Financial loss resulting from hijacked customer accounts, rate evasion, and fraud rings, is not solely restricted to insurers. Legitimate policyholders share the financial burden of insurance fraud by way of increased premiums.
The challenge for insurers is how to effectively integrate digital solutions with legacy systems to process timely and accurate quotes and claims without compromising security and adding friction.
Passwords alone are no longer sufficient protection for online accounts, as they can be cracked in minutes by experienced hackers or bought on the dark web due to an earlier breach. Although two factor authentication (2FA) provides an extra security layer to verify user identity, it doesn’t protect against Malware or social engineering attacks, as fraudsters can hijack legitimate login sessions.
Knowing who policyholders are, and how and when they transact, can detect suspicious behavior or compromised devices before accounts are infiltrated by cybercriminals. Insurers need to be able to continually recognize returning customers while seamlessly integrating this validation process into existing business processes without adding unnecessary friction. Insurers must adopt layers of defense, for example profiling the precise behavior on an account (including any change of details), accessing shared intelligence of known fraud, as well as detecting the presence of malware or remote access control.
ThreatMetrix has a market leading fraud solution that can protect insurers from account takeover by passively authenticating returning customers. The ThreatMetrix Cybercrime Protection Platform adopts a layered approach to effectively identify up to 95% of returning customers, reducing friction and fraud.
This network underpins the ThreatMetrix solution and leverages global shared intelligence from millions of daily consumer interactions including logins, payments and new account originations. Using this information, ThreatMetrix stitches together a customer’s true digital identity by analyzing the myriad connections between devices, locations and anonymized personal information.
Digital Identities within the ThreatMetrix Digital Identity Network show a pattern of trusted behavior by incorporating anonymized non-regulated personal information such as user name, password and email address with device identifiers, connection and location characteristics. At the same time, ThreatMetrix profiles all devices accessing a website (desktops, laptops, smartphones, or tablets), to identify the presence of malware or other anomalies that might indicate a high-risk login attempt. High-risk anomalies can be easily identified and flagged for review or automatic rejection. Insurers can confidently detect key situations that put user accounts at risk including:
ThreatMetrix offers a powerful yet easily customizable Policy Engine that allows you to incorporate your own business processes and tolerance for risk. This allows your business to fine tune and automate responses to login sessions. Every business faces different exposure to fraud risk; with ThreatMetrix you have the ability to tailor the solution to meet these varying and evolving business needs. For example, you may:
ThreatMetrix offers the broadest combination of defenses against account takeover in a solution that imposes little burden on your IT resources or your customers: