Banks adopting more biometrics-based solutions

Knowledge-based analytics are quickly declining, however a number of forms of behavioural analytics continue to see strong success, as found by Julie Conroy, research director of Aite Group.  Conroy's report, Digital Channel Fraud Mitigation: The Mobile Force Awakens specifies the most recent threats to banks and their customers, and looks at the technologies that banks use.

The research also dives into the technologies that banks are currently using and technologies that they'll begin using over the next two years.  Findings include:

  • More than half of the banks using knowledge-based authentication technology expect their use of the technology to decrease over the next two years.
  • Six of the interviewed banks will enable biometrics for mobile banking login by the end of 2015.
  • Various forms of behavioural analytics continue to see strong growth, with the majority of banks having at least one answer in place. Many have a second in either production or pilot.
  • Seventy-nine percent of banks expect to increase investment in online and mobile fraud mitigation technology spending over next two years. The 20 percent of financial institution executives who are facing flat budgets have expressed frustration.

Behavioural analysis is a vital element of NuData Security ‘s fraud prevention and detection solution. NuData Security's NuDetect online fraud engine, which uses continuous behavioural analysis (eg the way someone types, holds their device) and compiled behavioural biometric data, can predict fraud as early as 15 days before a fraud attempt is made. The early detection provides organisations time to monitor, understand and prevent fraudulent transactions from taking place.  

Conroy said in the report, “Leading vendors include NuData Security. When the biometric is paired with strong device authentication, it is even more difficult to defeat.”