Money Remittance

Banking on Digital Identity in the Fight Against Fraud

The rapid pace of change in the money remittance market shows no signs of slowing, with new money transfer models continuing to emerge as both traditional and web-based startups race to innovate in the increasingly competitive landscape.

Whether it’s for relocating to another country, sending money to friends or family living overseas or purchasing goods and services for a business, the increased demand for transferring money globally has grown exponentially. The World Bank estimates that in 2017 approximately $596 billion was sent, with this number expected to reach $616 billion in 2018*.

With hundreds of billions of dollars sent abroad annually, fraudsters have been quick to capitalize on the rapid adoption of money transfer technology, exploiting opportunities to take over accounts or utilize stolen identity credentials. Without tight fraud protection, the reputation of this industry could be irreparably damaged by the negative associations of fraud events.

In addition to the rising risk of fraud, several established, well known organizations have been penalized for failures in anti-money laundering and fraud within the industry. Furthermore, a heightened global regulatory focus on the verification and transparency of money transfers to manage the risks associated with terrorism financing and money laundering has created a challenging balancing act for money transmitters around the world.

Remittance: Easy Money for Cybercriminals?

Money remittance providers have to protect against the universe of all possible attacks. A single vulnerability can quickly damage user acquisition numbers and growth as businesses attempt to solidify their market position. Yet organizations are faced with an ever-evolving fraud arena. The availability of stolen credentials, advanced cyber tools and full exploits for sale or rent on the dark web, have made it easier for the less technically astute to commit fraud.

As competition intensifies within the money remittance industry, recognizing fraud threats through static rules and manual reviews alone is not sufficient. Remitters require automation in fraud detection across all device platforms, incorporating dynamic intelligence to accurately identify good customers from fraudsters in real time, without increasing the level of friction in the journey.

In the midst of a dynamic evolution in technology and the regulatory environment, there is consistency. Consumers expect frictionless security, transparency, and immediate results for their funds transfer.

The ThreatMetrix Solution for Money Remitters

ThreatMetrix offers real-time fraud and authentication decisioning solutions that allow money remitters to minimize fraud-related losses and more accurately authenticate users. The ThreatMetrix platform enables money remitters to:

  • Stop Fraudulent New Account Registrations: New account fraud occurs when stolen or synthetic identities are used to open new accounts. Fraudulent accounts are frequently leveraged for bust-out fraud or may lie dormant, to be used later for multi-stage money transfer fraud. ThreatMetrix provides a risk-based fraud detection solution that uses digital identity intelligence to help remitters better identify potentially high-risk new account applications.
  • Protect Against Account Takeover: ThreatMetrix can help prevent account takeover by detecting fraudsters attempting to access an existing account using credentials obtained through phishing attacks, keylogging, breaches or brute force techniques.
  • Prevent Payment Fraud: Money remittance providers must make near-time decisions about cross border payments. ThreatMetrix detects unusual transactions by combining device attributes, malware detection and sophisticated analytics with the user’s identity and transaction details. This real-time fraud analysis offers money remitters an additional layer of protection to reduce the costs of fraud while protecting the online experience for legitimate customers.
  • Protect Against Mule Activity: ThreatMetrix can help prevent the origination of mule accounts, individuals who act as an intermediary for criminals to launder funds obtained as a result of illegal activities, through the use of Device ID and IP linkage by utilizing models to identify mule profiles and behavior.

ThreatMetrix offers real-time fraud and authentication decisioning solutions that allow money remitters to minimize fraud related losses and more accurately authenticate users.

Money Remittance

The ThreatMetrix Advantage

Digital technologies are rapidly changing the money remittance industry. Remittances require a solution that can evolve as the fraud and financial crimes landscape evolves. ThreatMetrix will support them through the following key capabilities:

  • An Unparalleled Network: The ThreatMetrix Digital Identity Network protects 1.4 billion unique online accounts using intelligence harnessed from over 2 billion monthly transactions.
  • A Comprehensive End-to-End Solution: Universal fraud and authentication decisioning across all use cases and throughout the customer journey.
  • Bringing Digital Identities to Life: ThreatMetrix ID™ combines a unique identifier, a confidence score and a visualization graph to genuinely understand a user’s unique digital identity across all channels and touchpoints.
  • An Integrated Approach to Authentication: Flexibly incorporate real-time event and session data, third-party signals and global intelligence into a single Smart Authentication framework, to deliver a consistent and low-friction experience with reduced challenge rates.
  • Advanced Behavioral Analytics and a Clear-box Approach to Machine Learning: ThreatMetrix Smart Analytics analyzes dynamic user behavior to build more accurate, yet simpler, risk models. The result is a competitive edge in customer experience with reduce false positives, while maintaining the lowest possible fraud levels.
  • Privacy by Design: ThreatMetrix is unique in its ability to solve the challenge of providing dynamic risk assessment of identities while maintaining data privacy through the use of tokenization and encryption.
  • Rapid, Lightweight Deployment: The ThreatMetrix solution is cloud-based, providing simple and straightforward integration with existing systems.

*Resource: Migration and Remittances – Recent Developments and Outlook (World Bank Group), October 2017

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