Why are risk management and fraud detection key for Digital Banking?
It's no news to say we live in an increasingly connected world, a trend not only pushed by the younger generations. As digital channels are multiplied and
mobile banking massively adopted, consumers expect to reach their bank, authenticate and manage their finances in a smooth way on any type of connected devices. Wherever they are.
Today, banks generally offer a good user experience when it comes to
fraud detection on IP Networked devices. But there's still a long journey to reach the same experience for mobile phones, and even worse when talking about Internet of Things, such as wearable devices and Smart TV.
In parallel, banks are facing a
dramatic increase in the number of cyberattacks, with more sophistication and complexity. Fraudsters and hackers constantly challenge the security measures put in place by banks to protect their customers' sensitive data.
According to the
McAfee lab quarterly threats report of March 2018, In Q4 of 2017,
McAfee Labs recorded on average eight new malware samples per second—an increase from four new samples per second in Q3.
Source: McAfee Labs, 2018
Would switch banks if their current bank was breached
Fraud strategies and authentication policies therefore need to adapt and be more automated to cope with increased number of connections, creativity of fraudsters and new regulations. Banks may want to use different vendors to better monitor each kind of risk and cyberattack, but solving all this is a pain and really time consuming.
A recent Gemalto survey showed that
44% of consumers would leave their bank in the event of a security breach, and 38% would switch to a competitor offering a better service.
All this illustrates the incremental difficulty for banks to stay ahead of the cyber-criminals while maintaining a smooth user experience.
This is exactly what Gemalto Assurance Hub brings to online banking thanks to a groundbreaking approach in fraud prevention.
Gemalto Assurance Hub = best in class fraud prevention services
Gemalto Assurance Hub (GAH) is an open hub that allows banks to assess every single online banking session in real-time. It comes with best-in-class solutions already pre-integrated to analyze a broad range of attributes and signals from the user and the device, such as geo-location, device profiling, IP address, device assessment and behavioral biometrics.
Even more new solutions will be integrated during 2018 to allow cybercrime threat detection, device profiling,
identity verification and fraud intelligence.
But there are 3 main differentiators that make Gemalto Assurance Hub a unique solution on the market, answering major financial institutions needs to monitor risk, as required by regulations like
PSD2, and to detect and fight against fraud:
On top of those assets, Gemalto Assurance Hub allows banks to:
one balanced score, consolidating all scores given by the different solutions pre-on boarded in the Open Hub as well as those the bank may have passed on
Integrate data from the bank and 3rd party, giving ability to the bank to pass scores from vendors they are already using as well as any other data necessary to the bank
Define clear and customized configuration rules within the open hub and vendors solutions integrated to tell Gemalto Assurance Hub e.g. what vendor an API call should go to as everything is open for the bank to see
- Generate a
consolidated reporting across all of the vendors solutions used, i.e. no need to go to multiple places to track your fraud
- Always have
best-in class solutions to stay ahead of the fraud technology, Gemalto Assurance Hub will continue to adapt integrated solutions to cope with new fraud trends
a unique trusted interface, taking the risk out of working with multiple/small vendors as Gemalto shoulders the responsibility for this
Seamless risk assessment and fraud prevention for smart user authentication
Gemalto Assurance Hub is scalable and can easily integrate with existing risk management solutions and any business rules the bank already have. With a single point interface it removes the complexity and offers an optimized user experience. This minimizes the risk of fraud, and with the control console it is possible to pilot different fraud strategies and risk based authentication methods.
As it bring best in class technologies monitoring millions of signals and thousands of attributes, it allows to be at the forefront of fraud management. All data that makes a user profile (such as user and device identity,
behavioral biometrics and user banking profile) is analyzed and added to the rules engine of our assurance hub to help recommend an adequate authentication method and reduce friction in the consumer experience.
Gemalto Assurance Hub is a turnkey comprehensive authentication framework.
We have assembled all the elements of a multi-factor strong authentication framework and integrated these with our new risk management and fraud detection solution as a future-proof cloud-service. This mix of risk-based and strong authentication makes us unique as an Identity and Authentication solution provider.
Gemalto Assurance Hub is the winning combination to bring trust, security and convenience in the new digital and collaborative Open Banking ecosystem.