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 Millennials.
As eBanking continues to rise 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 prevention 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.
Online banking fraud impact on customers
A recent Gemalto survey showed that:
This illustrates the incremental difficulty for banks to fight online banking fraud 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.
Fraud prevention services
Gemalto Assurance Hub is a smart risk assessment platform in the cloud 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:
- device profiling,
- IP address,
- device assessment,
- behavioral biometrics.
Based on a set off rules defined in the Policy
Manager, the platform evaluates the level of assurance banks
should have for every single transaction performed by
their customers and recommends the most appropriate
This helps banks make the right
choice to minimize online fraud: allow the transaction, block
the transaction or challenge the customer with a step-up
Banks can define a granular
authentication policy based on customer segmentation,
customer preferences, use cases, and their own
It helps banks to reduce their operations and fraud management costs by decreasing the number of online banking fraud alerts, claims and false positives.
In other words: It's good news for customer satisfaction as this slashes the number of times that a client can’t complete a transaction because of an incorrect flagging.
This also reduces the operational overheads of the bank by preventing unnecessary interactions with such customers.
What makes Gemalto Assurance Hub so unique?
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
Test different fraud prevention strategies
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 online banking fraud, and with the control console it is possible to pilot different fraud strategies and risk-based authentication methods.
As it brings best in class technologies monitoring millions of signals and thousands of attributes, it allows to be at the forefront of online fraud detection and prevention.
The complete set of data that makes a user's profile (such as identity of user or device,
behavioral biometrics and user's banking profile) is analyzed and added to the rules engine of the platform to help recommend an adequate authentication method and reduce friction in the consumer experience.
Gemalto Assurance Hub is a turnkey comprehensive authentication framework.
Deliver a greater digital
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.
The future of financial fraud detection at Gemalto
Most banks have already made protection against online banking fraud a top strategic priority, but fraud detection and prevention will only increase in importance and require ever greater resources.
At Gemalto, we believe in taking a global approach to security. That's why we strive to provide secure, durable and innovative solutions to our clients.
In the course of 2019, even more new solutions are being integrated in our platform to allow mobile fraud threat detection, device profiling, identity verification and fraud intelligence.