The advancing digitization of services, which is being driven both by the corona pandemic and the development of new technologies, offers users significant advantages and great dangers. One of the most important uses for this is online banking.
Today almost all banks have stepped into the Internet and offer a whole range of different services via digital channels and mobile devices with online banking. The digitization of account management and the further development of open banking options are expected and used by users. Many fintech and neo-banks are just one example of the trend towards digitization, which is very popular among customers. But with the rise of online banking and digital services, so too do the dangers of Internet fraud, where hackers use complex technologies to capitalize on the development.
Internet Fraud Damage Is Increasing Sharply
Internet fraud in the banking sector is a significant challenge that can be viewed from two angles:
- Ensuring the safety of users and their assets
- Regulatory pressure and compliance
Both of these lead to further hurdles, including the cost of infrastructure, additional staff, the time required to comply with new regulations, and increasing the digital competence of users. The main reason why this challenge is so demanding is that it is invisible and should be: fast and without any significant impact on the user experience and banking operations. Therefore, it requires the use of specialized, AI-supported technology.
Prevent Internet Fraud From New Technologies
To meet security and regulatory challenges, organizations can employ technology that processes a wide range of usage data to continuously verify the identity and intentions of users, thereby protecting personal assets.
It does this by evaluating specific digital usage details, including transactions, sessions, devices, and behavioral data, to create a trusted digital profile. Based on this profile, it is possible to identify subtle differences in the details of use. Once such a digital fingerprint is created, any associated anomalies or changes in known and trustworthy behavior are used to optimize the profile to provide valuable insights to the banks.
The assessment can be carried out continuously throughout the entire digital use (onboarding, authentication, account management, transactions, etc.) and thus offers trust and security for both end-users and companies. This approach ensures that there are no unnecessary authentication hurdles in online banking.
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The Same User Experience – But Safe
Everything starts with registering for online banking. As soon as a user downloads the content of a page, a function is loaded, which begins to transmit data to the analysis server. This can be done on websites via a JavaScript snippet, on mobile devices via an SDK integrated into the mobile banking app.
The collected data is examined on the analysis servers, after which the risk assessment is linked to the current user, the session, the device, and the behavior. An authentication hurdle can be inserted if the user profile is new and the AI engine is not trained on it. If the user profile is known, an uninterrupted experience can ensue during the entire usage. As soon as a user logs in, the AI evaluates the behavior pattern, for example, typing behavior and mouse movements, to confirm the identity.
Behavioral Biometrics As An Additional Signature
This behavioral biometric data is unique for each user, similar to a fingerprint or the iris pattern. The EU directive PSD2 (Payment Service Directive 2) regards behavioral biometrics as a component of identity and allows the method of identity confirmation. While users write their e-mails or enter their passwords, the digital profile can be updated with the digital behavior, and the risk assessment can be adjusted if necessary. If a user typically sends money from their safe home location but is suddenly 500 kilometers away, this is a signal to increase the risk assessment.
If the user navigates the online banking app differently, this is also a signal to increase the risk assessment. Suppose the user uses a seemingly fake and static mobile device on which the accelerometer does not move for an extended period. In that case, this is a signal to increase the risk assessment. Anything that represents an anomaly can be measured and assessed to determine how it will affect the final risk assessment. Today’s technology can evaluate hundreds of these signals and adjust the risk assessment accordingly.
Verification Of The Process In Less Than 150 Milliseconds
The most important task of modern anti-fraud technologies is to continuously evaluate the details of users and their behavior in digital banking. The system adjusts the risk assessment accordingly. As soon as a critical event occurs in online banking, for example, access to PII (Personally Identifiable Information), applying for a loan, or making a payment, the bank can use APIs to ask the analysis server how high the risk is for the active user.
As the system continuously updates the risk value, the information is immediately available and accessed in less than 150 milliseconds. The bank can then use this information at its discretion. In addition, modern fraud prevention solutions usually offer a graphical user interface (GUI). With this, fraud analysts or other banking specialists can evaluate the risk assessment details, such as meetings, devices, or warnings.
Powerful Internet Fraud Prevention Solution
Sophisticated technology offers a robust fraud prevention solution by creating a trustworthy digital profile from details of user behavior. It’s like a unique fingerprint. The standard information database can offer both companies and users additional digital experience security and trust. The system decides within 150 milliseconds whether a process is classified as trustworthy or fraudulent. This enables secure online banking in a fraction of a second, and, in case of doubt, additional authentication hurdles are interposed to prevent attempted fraud.
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