BioCatch called attention to the growing threat of new account fraud during a recent webinar with Aite Group Research Director Julie Conroy. Also referred to as application fraud, new account fraud describes fraud that is carried out through new accounts that are created with synthetic identities, many of which are generated with stolen personal information.
According to BioCatch, new account fraud is particularly prevalent in online channels, which are becoming more popular as financial institutions look to make the onboarding process more convenient. Unfortunately, large data breaches have given cybercriminals access to massive stores of Personally Identifiable Information (PII) that they can use to open seemingly legitimate accounts. Those criminals are adept at using that information to execute automated attacks, and those attacks are often successful due to weak authentication protocols.
BioCatch is promoting behavioral biometrics as a potential solution to the problem, noting that PII is no longer a reliable form of authentication when PII is so readily available. Since they create multiple accounts, fraudsters tend to be more familiar with onboarding and login procedures, and will know many advanced keyboard shortcuts that allow them to navigate registration screens as quickly as possible. They’re also more likely to copy and paste PII, whereas real users will manually enter the information that they have memorized.
A behavioral biometric security platform will be able to spot those tendencies and flag suspicious activity. Doing so will reduce the threat of application fraud, which is expected to carry a $2.5 billion price tag for American financial institutions in the next year.
BioCatch has regularly pushed behavioral biometrics as an effective tool against more complex forms of fraud, including vishing and compromised emails in addition to new accounts. The latest webinar is in keeping with that pattern, and supports the company’s efforts to create a more dynamic understanding of identity.
November 4, 2019 – by Eric Weiss