Behavioral Analytics Takes Center Stage When Fighting Synthetic ID Fraud
Fraudsters are growing bolder in their tactics and targets, and fraud prevention experts struggle to keep up. Banks, for example, saw their average monthly volume of fraud attacks increase from 1,977 in 2020 to 2,320 in 2021. Fraudsters have been hard at work exploiting every possible flaw in companies’ and customers’ armor, deploying identity theft, card-not-present fraud, account takeovers, malware and friendly fraud, among many other techniques.
Biometrics is one popular choice for fraud prevention, as well as multifactor authentication, anomaly detection and several other solutions. Each one has security loopholes that fraudsters can detect and exploit, however, making each option ineffective as a one-size-fits-all solution. Instead, organizations should look to multilayered defense systems that include behavioral analytics. A fraudster that managed to spoof a user image or intercept a verification code would still have to enter in the false data they acquired, allowing the analytics system to ping them as an illegitimate user by identifying their typing patterns as those of a bad actor rather than a legitimate user.