The Strongest Fraud Detection Method For Mobile Transactions

May 30, 2018

Mobile fraud prevention and detection tools are evolving, especially in the field of static biometrics. And static authentication might be sufficient for online fraud detection for desktop users, but when it comes to the mobile channel, which is dynamic by definition, static security thresholds can easily be bypassed by fraudsters. 

Recap: Why The Time of Static Authentication Is Over...

Fraud is a 24/7 operation. Attackers, continuously upping the ante, are every bit as sophisticated as the IT specialists trying to protect their data. Static authentication and knowledge-based authentication while once effectively fought breaches, today this is no longer the case. It might be sufficient for online fraud detection for desktop users, but when it comes to the mobile channel, which is dynamic by definition, static security thresholds can easily be bypassed by fraudsters. Fraud techniques such as automated bots, malware, RATs and fraud-focused emulators represent sophisticated threats. One-time, static checks are no match for attempted breaches at every point of entry and just add unwanted friction to the user’s experience.

And Why The Time of Continuous Authentication Has Come

And this is where continuous authentication comes in. It covers fraud detection vulnerabilities through constant active monitoring and dynamic machine learning. Studying the user’s physical behavior pattern can determine if the user is who a user really is at every stage of the session, and not only during the actual login. And based on the available behavioral data, permission for action can be adjusted according to the level of risk associated with a requested transaction.

The ability to assess and reassess risk constantly, while adjusting authentication levels accordingly, ensures that mobile banking app users can carry out high-risk financial transactions without fear of PII data breaches.  All this without impeding the user's app experience with additional authentication measures.

Banks Beware of Automated Fraud Attacks

The 5 Benefits of Continuous Authentication

  • Transparent Fraud Prevention - Artificial Intelligence (AI) is teaching automated bots to be more human, making it harder to differentiate between the authentic user and a non-human one. To block hackers’ human replication skills, continuous authentication identifies a combination of unique behavioral characteristics to ensure that the user is who they say they are throughout the session.
  • Fraud Detection Past the Login - Initial authentication alone cannot ensure that your mobile app users are protected against fraud. Fraudsters can hijack sessions using various methods including RATs (remote access trojan), automated strains of MITM, and ATO. Continuous authentication, which uses AI capabilities, enables the system to build dynamic user profiles while constantly comparing user behavior to the profile throughout the session. In the event of an anomaly the event is flagged.
  • Frictionless Step-up Authentication -  Step-up authentication contains a dynamic authentication model where users who access more sensitive resources must apply a stronger authentication mechanism. When implementing this additional layer using continuous authentication, there is no need to interrupt the session with additional verification measures, reducing friction and improving the UX.
  • Risk-based Authentication -  Risk-based authentication is a non-static system which takes into account the profile of the user requesting access to the system to determine the risk profile associated with a transaction. Users are allowed to make riskier financial transactions on their mobile apps based on the level of authentication applied. While also reducing fraud, this opens up many more avenues of revenue streams for banks that offer mobile applications for their customers. 
  • Reducing False Positives - Continuous authentication with behavioral biometrics translates to a lower false positive rate in addition to customer loyalty and retention. With accurate and reliable verification methods, differentiation between genuine customer and fraudulent activity is guaranteed. Customers should never be locked out of a sale.

Continuous Authentication - The Key to Secure Mobile Banking

Due to its ability to incorporate incessant background assessment with automated learning capabilities, continuous authentication is increasingly being recognized by fraud experts worldwide as the strongest fraud detection method available today. In a world where digitalization has become the norm and change is the only constant, the combination of a smooth and uninterrupted mobile user experience alongside robust anti-fraud capabilities offers a win-win situation for the banking or e-commerce industry, fraud managers and end users alike.  

Ready to learn more? Check out our new whitepaper on the business case for continuous authentication:

Download Our Free Continuous Authentication Whitepaper

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