April 20, 2018
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Every day huge amounts of data are generated from siloed, single-purpose solutions. As a result, many organizations find it extremely difficult to identify relevant patterns and signals across various data sets that could point to either fraudulent online behavior or indicate a security breach. In many cases, organizations simply fail to connect the dots. Security breaches often go undiscovered for months, yet it takes only minutes for a victim’s identity credentials to be compromised.
Innovation continues to drive change as tech-savvy consumers demand a new caliber of online experience that is consistent with the rapid digitization of most industries. One of the major side effects of this phenomenon has been the exponential rise in fraud and web security risks. To mitigate these risks, companies commonly make significant investments in single-purpose fraud and security solutions. Unfortunately, these solutions are optimized to detect a specific threat vector which provides one dimensional information. Furthermore, companies often departmentalize functions or skills to quickly address seemingly unrelated fraud and security incidents.
Departmentalization often results in segregation, duplication, and confusion over fraud and security risk mitigation. Recent data breaches demonstrated the vulnerabilities of single-purpose solutions and departmentalization as cybercriminals continue to exploit the lack of oversight, visibility, and accountability within organizations.
Every day huge amounts of data are generated from siloed, single-purpose solutions. As a result, many organizations find it extremely difficult to identify relevant patterns and signals across various data sets that could point to either fraudulent on-line behavior or indicate a security breach. In many cases, organizations simply fail to connect the dots. Security breaches often go undiscovered for months, yet it takes only minutes for a victim’s identity credentials to be compromised.
Consumer digital footprints are complex and multifaceted, meandering across channels, locations, and devices as a user transacts and interacts throughout their day. As industries transform to meet new consumer expectations and global complexities, fraud prevention and IT security are becoming intertwined in new and synergistic ways. Success in both worlds relies on being able to manage, understand and respond to a single view of the consumers’ digital identity by using behavioral analytics and real-time data.
Cybercrime is more automated, organized and networked than ever before. The growing sophistication of cybercriminals is evident in the evolution of attacks and the use of advanced tools, such as malicious programs, that allow criminals without technical skills to deploy computer ransomware or perform video or audio eavesdropping with a mouse click. Cybercriminals outsmart many traditional security solutions as they mimic legitimate users and no longer appear malicious. Rather than attacking from a single IP address, cybercriminals may vary their IP address with different attack patterns. Instead of using exploit code, cybercriminals leverage stolen credentials to bypass security controls, steal confidential information, commit financial crimes, and disrupt operations, all without detection. Here are a few examples of how leading security controls fail to detect cybercriminals.
While traditional security controls have blind spots, the challenge is not the lack of features but the lack of integration. Single-purpose solutions when used alone are more brittle and susceptible to being attacked individually by cybercriminals. The key is to leverage the collective knowledge of fraud and security systems to make better decisions against threats.
Cybercriminals will continue to bypass existing controls and protections if fraud and security solutions remain siloed. Organizations that focus on digital identity can deliver a more holistic and structured approach to threat management. Understanding digital identities and online personas offers an umbrella of protection against fraudsters and fraud rings attempting to pierce siloed security solutions.
The goal is to support a unified view of risk across the fraud, security, risk, compliance, and customer engagement departments and to assess risk across all digital channels and consumer journeys. Monitoring and managing digital identities and personas in real time is one way to achieve this. Understanding the digital DNA of users and their unique online footprints introduces the concept of “trust”, which can be leveraged in very powerful ways.
Knitting together trusted digital identities creates a wall that is impervious to fraudsters. Since the digital footprint of a fraudster is typically markedly different from a trusted user, fraudulent behavior becomes far easier to detect by leveraging digital identities.
One of the best ways to tackle complex, global cybercrime is using a global shared network that provides insight into the digital identifies of connecting users.
The unique digital identity for each user should be synthesized by analyzing the myriad connections between devices, locations and anonymized personal information and threat. Behavior that deviates from the trusted digital identity needs to be accurately identified in real time, alerting businesses to potential fraud. Suspicious behavior needs to be detected and flagged for manual review or rejection before a transaction is processed.
The solution should provide insight into connecting users and a platform to execute decisions on.
Three key data points define digital identity across all device platforms. These can be summarized as:
A framework enabling custom integrations of external signals that provides a consolidated view of the user across all digital touchpoints and lifecycle. The solution needs to address the continuous and evolving need to test and integrate new and niche intelligence feeds, signals, and authentication methods with disparate or legacy security solutions. It should enable organizations to connect the dots from their existing fraud and security solutions, providing a holistic view of legitimate and malicious users. The platform needs to help preserve prior and future data investments and help organizations make faster, smarter fraud decisions with clear, decisive action. The platform should contain the following key functions:
As fraud and security risks converge, organizations are becoming exposed to threats that can fall between the cracks with siloed solutions. Many organizations are unable to connect the dots because each individual solution only provides a piece of the puzzle. Fragments of data from fraud and security solutions lack in-depth information to provide deep insights into the true risks organization face.
With digital identity, fraudulent behavior becomes far easier to detect, as the digital footprint of a fraudster is often markedly different from a trusted user. This enables fraud, security, risk, compliance, and customer engagement departments to have a unified view and risk model of a user across all digital channels and lifecycle and engagement. Leveraging the power of digital identities to establish trusted behavior unique to each user is the best way to rout out fraudsters and hackers while stopping good customers and users from getting caught in the net.
Cybercriminals will continue to bypass existing controls and protections by exploiting the gaps between siloed solutions. While numerous security measures are needed to protect an organization, combining information from all available sources to determine if users are who they claim to be is perhaps the most important.
Organizations need a more comprehensive way to evaluate risks due to evolving cybercriminals who can attack at a critically controlled level, access complete stolen identities, and hijack legitimate login sessions to look like trusted customers.
Leveraging a platform to combine information from various sources of siloed solutions and data ensures both fraud and security issues are better detected, orchestrated, and acted upon. This pragmatic approach helps organizations identify both risks and opportunities allowing organizations to grow and protect against monetary and brand damages.