It is not a surprise that identity theft is a threat and a source of frustration for everyone. As a result of living in a digital era, identity theft can be destructive. Broken credit sources can stop you from accessing loans, basic needs and even employment. This is why Fraud Detection is extremely important.
Businesses suffer the consequences of identity theft too. The finance industry is especially vulnerable to these attacks because of the nature of their business.
What is the solution?
Firstly, we do not have enough people experienced and skilled in identifying fraud. Even if we did, a human can’t precisely recognise fraud from analysis of an application in a short period.
Secondly, customers are not ready to wait for a manual review. They will abandon any digital process that takes long to respond.
Digital Account Opening (DAO) is a part of almost every business. But the Finance industry is probably the one that has embraced it. Keeping in mind the scale of the digital process today, the best and ideal way to prevent fraud is technology.
Fraud Detection is more than data
Digital workflow is a blend of interfaces, applications and more. Tracking a single application among the multiple interactions is a significant task. Although the modern components of a DAO may generate the correct data, traditional backend systems may not. Even if we use the application services that generate the right data, analysing it in the context of the transaction remains a challenge. This requires access to data from different locations.
Today, we have data from multiple sources, but lack contextual awareness to precisely recognise the attempt to open an account fraudulently. Furthermore, many organisations operate with obsolete techniques.
Traditional techniques like CAPTCHA are not sufficient to detect, fraudulent digital accounts. Attackers today are way too sophisticated to let these techniques get in their way. It is a matter of hours before they breach these measures and move past them.
The technology should be just as adept as the attackers. Although this may not be as easy as it sounds, it shows the depth of sophistication we need to prevent fraud. Ideally, we need AI-infused analytics capable of correlating the data in the workflow to detect any suspicious activity.
Our partner F5 intends to build a multi-purpose application analytics platform proficient in providing organisations with insights they need to securely scale and optimise their digital workflows with maximum effectiveness.