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By: Ryan Wilk VP of Customer Success Nu-Data Security
here are two trends that inform my prediction for 2016. One is the ongoing onslaught of data breaches that loose complete packages of Personally Identifiable Information (PII) onto the black market. Clearly, this indicates that risk prevention methods based on PII are not sufficient to prevent fraud. The other is the ongoing adoption of mobile platforms. This has shortened an already-short attention span and led users to expect a frictionless and quick transaction experience. Taken together, these trends point to the need for passive behavioral biometrics. My prediction is that behavioral biometrics will enjoy a surge in the new year. It’s the only way to protect customer data and accounts and offer a painless user experience at the same time. In fact, the mobile space is a perfect pairing to biometric and behavioral analytics technologies because of the increased number of biometric measurement tools built in to every tablet and smart phone. INTELLIGENCE TO REDUCE FRAUD AND ITS COSTS Fraudsters make off with about $9 billion annually. That number seems staggering, until you learn the cost
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Payment Quarterly | Q1 2016
of false positives, where legitimate consumer purchases are canceled due to overzealous traditional fraud prevention methods. That’s upwards of $118 billion in lost revenue, according to the report “Future-Proofing Card Authorization” from Javelin Strategy & Research. And as criminals become more adept at successfully jumping Knowledge Based Authentication (KBA) hurdles, legitimate customers push up against ever-greater levels of friction. Risk management leaders need to find a better way to identify their valued customers and identify those who present elevated risk. To minimize the friction legitimate users face while still being able to identify bad users, businesses are using behavioral analytics. This method lets business become better predictors of risk by accurately identifying and verifying customers. Biometric and behavioral analytics greatly increases industry efforts to devalue stolen data, eventually reducing the number, scale and impact of data breaches worldwide. This greatly benefits users, allowing them a frictionless and safe online experience, while continuing to protect their accounts even if their logins and passwords have been compromised. Allowing good customers to continue