Financial institutions move forward in the development of a comprehensive anti-phishing strategy
In the era of e-commerce, online banking, and digital payments, the number of online transactions has significantly increased, creating more opportunities for fraud. This growing threat has not gone unnoticed by sophisticated fraud attackers, targeting banks and financial institutions.
To combat this issue, Entersekt, a global leader in digital banking authentication and e-commerce fraud prevention solutions, is collaborating with banks such as ABN AMRO, Erste Group, and Standard Bank to develop an improved fraud risk management system. This system is designed to protect digital banking security without compromising customer experience.
The key to this innovative approach lies in risk intelligence and advanced authentication. These technologies can advise when to authenticate, when to decline, and when and how to step up, offering a more holistic and proactive fraud management solution.
Risk-based authentication can detect when a user may be under duress or coercion, particularly for vulnerable customers like the elderly, and intervene to prevent financial losses. It can also use data from multiple channels and across devices, allowing it to learn and respond more quickly to evolving threats.
Moreover, risk-based authentication with silent signals can detect subtle anomalies and emerging fraud vectors, helping to safeguard against these threats. The ability to analyze a broader range of signals, including contextual information, device data, and real-time indicators, can give banks a more nuanced and accurate risk assessment.
Traditional fraud risk management solutions often rely solely on the user's approval to authorize a transaction, leaving a dangerous gap in the defense against social engineering scams. These solutions are struggling to keep pace with the rapidly changing fraud landscape.
Fraudsters have increasingly targeted two-factor authentication (2FA) systems, particularly those that rely on SMS-based verification. Weak account protection leaves consumers open to attack, and AI poses a real threat of bypassing voice and facial biometrics by using online recordings of the victims.
Sharing more online, such as social media posts, online purchases, and geolocation data, provides fraudsters with information to build more convincing phishing scams, identity theft schemes, and social engineering attacks.
However, with the flexible and adaptable nature of risk intelligence with advanced authentication, it can be updated to detect and protect against new and evolving fraud tactics. Banks need to find better ways to protect their customers, as far too much is still left in the hands of the end user who are often not skilled in identifying new threats.
By implementing these advanced technologies, banks can deliver secure and seamless digital experiences to their customers, ensuring their online transactions are protected from fraud. Entersekt's innovative approach to fraud management is a significant step forward in the fight against digital fraud, offering a brighter future for secure online banking.
