Digital Onboarding How to Balance Fraud prevention and...
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Digital Onboarding How to Balance Fraud prevention and Customer Experience Philippe Mazurier – Director of Fraud and ID Busdev
Transcript of Digital Onboarding How to Balance Fraud prevention and...
Digital Onboarding
How to Balance Fraud prevention and
Customer Experience
Philippe Mazurier – Director of Fraud and ID Busdev
The Fraud Landscape in 2018
Fraud through the ages
1960s,
identity
theft by
phone
Book of
Genesis
Identity
fraud
Insurance
fraud
in Ancient
Greece
Frank
Abagnale
Jr.
1990s
Nigerian
e mail
scam
1920s
Charles
Ponzi
The digital world has created cybercrime
1989 www
invented
Cybercrime
Global cost
$6 trillion a
year
(Forbes)
2017 1,2 billion
websites
3.8 billion web
users
2006 2 billion wireless
devices
Mobile bank
launched
Cybercrime
– zero
2018
Est. total
spending on
information
security $89
billion (Gartner)
2020 estimated
200 billion
wireless
devices
1991 first website
1994 First on line
purchase
What do you need ?
Anonymity Operate from anywhere
High reward
Low risk of getting
caught
Need for tools
Fuel is the
data
Dark web markets provide easy access to resources
Alpha bay taken down July 2017 but many others remain
Access to
• Weapons,
• Narcotics,
• Unlicensed synthetic
drugs,
• Cyber-arms,
• Counterfeit goods,
• Counterfeit currency,
• Forged documents
• Forgery services,
• Credit card details,
• Personal information,
• Stolen account,
guides and tutorials,
• Fraud services
ASSUMPTION
1 - Organisations need to assume that all data is potentially compromised
2 – SCA OTP - One Time Passwords are not anymore the only solution
• Social engineering is really effective
• Malwares can capture and redirect
OTP sent or generated in mobile
• SMS Infra has been hacked
SS7 Hack
• Read or redirect
messages,
• Listen to calls
TWO important things to understand
What about your real customers ?
Combat Fraud, but don't forget business ..
Transactions Account Set Up
Source: Experian Fraud Report 2018
New customer abandonments
are due to
TOO MUCH
information requested
1in4 42% Millennials
Would use more
on- line
transactions
if there were
LESS security
barriers 30% Gen X
The Challenge of Client Onboarding ….
Account Opening
Fraud
Identifying the differences
between good and bad
customers as quickly as possible
REDUCE LOSSES
SUSPICION
Protection against fraud
INCREASE REVENUE
TRUST
Positive customer journey
…… achieve a balanced approach for Fraud
The Challenge of Client Onboarding ….
1. Fraud must be a Multi-layered approach
2. The end of the "Single Service Provider" model
KYC AML GDPR PSD2 SCA 2FA OTP Biometry ID Verification Selfie …
1. Evolving Fraud landscape, assume all data are compromised
2. Evolving compliance and regulation
3. Evolving technologies
Introducing Experian's Vision for Fraud Prevention
CrossCoreTM
An open
approach
Powerful
strategy
design and
workflow
decisioning
Common
access
through a
flexible API
CrossCore addresses the client NEEDS The first ‘plug-and-play’ platform for fraud and identity services
14 © Experian Public • 14/02/18
APPROVE
REVIEW
DECLINE
BY PASS
Single sign on
Integrated Toolkits
Experian In House 3rd Party
Account
Opening On line
Transactions
Log-ins and
Authentication
Defined Treatments & Automated Decisioning
Automate Workflow
Apply tools, treatments
& decisioning CrossCore
Up Sell &
Cross Sell
Four pillars for Digital onboarding
CrossCore Email Risk Scoring Because every email address tells a story
Document Verification via CrossCore Saying YES to more good customers
CrossCore Behavioural Biometrics Enhancing recognition for Account Opening
Crosscore Fraudnet for Application Fraud Device Intelligence added to AO Fraud Prevention
Fraudnet - Real time decision engine
Device
Intelligence Up to 160
attributes
captured
Customer
Data
Transaction
Data
(Application,
Login,
Payment, ..)
Risk Models
Velocity
Negative
Inconsistancy
Mismatch
Introducing Experian Document Verification
Form Fill
Fast and accurate data pre-fill
from ID documents and bills.
ID Verification
Real time ID document
verification.
Facial Comparison
Connect the person to their ID
document.
Behavioural Biometrics What is it?
• Distinguishes between normal user
behaviour and that of a fraudster
• Identifies inconsistent user
behaviours and prevents fraudulent
applications
• Captures multiple interactions
including hand-eye coordination,
pressure, navigation and scrolling
Email risk scoring example
98 VERY LOW RISK
Very Low Risk Low Risk Neutral Risk Review for Risk High Risk Very High Risk
Scores of 0-100 Scores of 101-300 Scores of 301-600 Scores of 601-799 Scores of 800-899 Scores of 900-1000
Approve Consider Approval Neutral risk Correct customer record Consider manual review Send to manual review
Experian and Crosscore
Experian’s
CrossCore
wins
23 providers
assessed
