Most people think that their relatively paltry sum of money is not enough to make them a target of fraud, especially when there are so many other bigger and more obvious targets. And this attitude is music to the ears of hackers, who are increasingly targeting new accounts in their efforts.
While the money from the new account probably isn’t enough to buy the hacker much, it’s certainly enough of a crimp in the victim’s life to force them to wonder why they didn’t put down more questions before opening this new account with their local financial institution (FI).
Banks considered new account fraud a low priority in the early 2000s due to the extraordinary level of technical skill required to collect personally identifiable information (PII) at scale, but now 85% of FIs report seeing activity. fraudulent in the account. opening process.
If that number isn’t enough to grab you, try this: US banks were expected to lose $3.5 billion to new account fraud in 2021, about the same as in 2018 ($3.4 billion). While this may mean that fraudsters have not become much more sophisticated in recent years, it also shows that banks are not doing much to protect their new account holders better than they were over three years ago. .
The January edition of PYMNTS’ “Monetizing Digital Intent Tracker®: Using Behavior As A Service To Drive Top-Line Growth” explores the latest in the world of behavioral analytics, including the growing threat of fraud on new accounts, using behavioral analytics to keep it at bay, and how these analytics can improve the customer experience at every level.
Get the tracker: Using behavior as a service to drive revenue growth
FIs need to focus more on protecting a new account holder’s personal information to prevent or limit fraud, as locking that information is a way to keep fraudsters at bay – to some degree at all. case.
Passwords and other knowledge-based authentication methods can help, but they’re not as effective as we’d all like to believe. We are creatures of habit and can only memorize so many combinations of lowercase, uppercase, special characters, and numbers at a time.
Nearly one in three consumers (32%) prefer to use passwords when accessing online services on a browser, but nearly half of individuals (44%) only use two to five passwords. password for all their accounts, which means they can all be compromised if there is a data breach.
Nearly two in five Americans (37%) share their passwords with others, creating another massive opportunity for data theft. And let’s not even talk about people texting or emailing their passwords or even to themselves.
Behavioral analytics “offers a much more secure approach to fraud prevention on new accounts,” according to the Tracker. Candidate data entry during onboarding is analyzed and the artificial intelligence (AI) platform identifies deviations from typical behaviors of new customers.