Featurespace digital onboarding solution tightens net on online fraudsters
Cambridge fraud-busting innovator Featurespace has launched Adaptive Behavioural Biometrics which uses in-session behavioural data collected from digital channels in real time to detect and prevent fraud during customer onboarding and digital sessions.
It introduced the solution at ‘From Money 20/20 Europe’ in Amsterdam.
Digital customer onboarding presents a significant challenge for banks, insurers, and other financial institutions because there is no historical information to accurately determine if an applicant is genuine or a criminal.
These organisations are also bombarded with new threats to existing customers, such as malware, as well as account takeover and man-in-the-middle and phishing attacks.
Available through the ARIC Fraud Hub, Adaptive Behavioural Biometrics models track user-specific features collected ahead of a transaction.
The models consistently self-learn from each interaction to produce a unique session fingerprint that indicates an individual user’s usual or unusual behaviour and provides fraud analysts with an easy-to-understand visual profile that even detects phishing and malware activity generated by genuine customers.
Martina King, CEO at Featurespace, said: “We’re attuned to the evolution of fraud and leverage our market-leading models and technology to continue to deliver the latest and most advanced fraud prevention and detection tools. There has never been a more important time to support our customers in their drive to prevent fraud loss and reduce customer friction.”
Featurespace™ is the world-leader in risk prevention and creator of the ARIC™ platform, a real-time AI machine learning software that risk-scores events in more than 180 countries to prevent fraud and financial crime.
The ARIC platform combines unique adaptive behavioural analytics and anomaly detection to automatically identify risk and catch new fraud attacks and suspicious activity in real-time.
The increased accuracy of understanding ‘good’ behaviour strikes the balance between improving the detection of suspicious activity while also reducing the number of false alerts, to improve operational efficiencies.
In a separate development, Ireland-based Permanent TSB – a provider of retail banking, mortgage, insurance, and other financial services – is to deploy the Featurespace ARIC™ platform to help the bank comply with the forthcoming regulatory requirements of PSD2. This comes into effect in September and mandates stronger customer authentication practices and fraud reporting.
According to the Banking & Payments Federation Ireland, more than 60 percent of all fraud on Irish-issued payment cards is through Card Not Present (CNP), where criminals use stolen information to conduct digital fraud.
The latest data from the European Central Bank shows that CNP fraud accounted for more than €1.3 billion in losses across Europe in 2016 and was the only category of fraud to increase year-over-year.
The Featurespace ARIC platform uses machine learning and Adaptive Behavioral Analytics to build and monitor individual behavioral profiles for customers in real time, detecting anomalies and preventing fraud across all payment methods and channels.
Martina King said: “Permanent TSB is our very first Irish bank client and we’re delighted in its selection of the ARIC platform.”