{"id":103540,"date":"2022-02-17T14:40:21","date_gmt":"2022-02-17T14:40:21","guid":{"rendered":"https:\/\/feedzai.com\/?p=103540"},"modified":"2024-04-09T09:16:54","modified_gmt":"2024-04-09T09:16:54","slug":"how-behavioral-biometrics-stops-family-fraud","status":"publish","type":"post","link":"https:\/\/feedzai.com\/blog\/how-behavioral-biometrics-stops-family-fraud\/","title":{"rendered":"How Behavioral Biometrics Stops Family Fraud"},"content":{"rendered":"
[vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”1″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”3″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column width=”1\/1″][vc_row_inner][vc_column_inner width=”1\/12″][\/vc_column_inner][vc_column_inner width=”10\/12″][vc_single_image media=”103541″ media_width_percent=”100″ uncode_shortcode_id=”303030″][\/vc_column_inner][vc_column_inner width=”1\/12″][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner column_width_percent=”100″ gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_visibility=”yes” mobile_width=”0″ width=”2\/12″][\/vc_column_inner][vc_column_inner width=”8\/12″][vc_custom_heading heading_semantic=”h3″ text_size=”h3″ text_weight=”400″ uncode_shortcode_id=”139126″]Could behavioral biometrics have put a toddler with an itchy shopping finger in time out?\u00a0<\/span>[\/vc_custom_heading][vc_column_text uncode_shortcode_id=”895374″]In case you missed one of the most <\/span>adorable stories<\/span><\/a> of the year to date, here\u2019s the background. A New Jersey family started receiving deliveries for furniture that they had no recollection of ordering. The items had been loaded in an online shopping cart, but the mother, father, and two older children didn\u2019t complete the purchase.\u00a0<\/span><\/p>\n That left one suspect: the family\u2019s 22-month-old son.<\/span><\/p>\n It turns out that the toddler had been playing with his mother\u2019s phone. Without even realizing it, he purchased over $1,800 in furniture that was left in an online shopping cart. By the time the family realized what had happened, it was already too late to cancel the purchases.\u00a0<\/span><\/p>\n The story of the toddler\u2019s accidental shopping spree is nothing short of heartwarming and sweet. It\u2019s also a textbook example of \u201cfamily fraud\u201d – in which a family member (typically a child) pays for something using the primary cardholder\u2019s card (usually their parent). However, not every case of\u00a0 family fraud ends up as an adorable and shareable social media phenomenon. More serious cases of family fraud can involve <\/span>elder abuse<\/span><\/a> or fraud in which a relative or close friend exploits their relationship with a loved one for financial gain.<\/span><\/p>\n On the other hand, friendly fraud is more commonly associated with chargeback fraud or auto fraud. In an example of this type of fraud, a consumer orders a product online. After receiving the order, they (falsely) claim the purchase was made fraudulently and demand a refund. When the refund is issued, they keep the product and resell it at a profit.<\/span><\/p>\n The latest <\/span>research<\/span><\/a> from Aite-Novarica Group, a global research and advisory firm, finds 17% of respondents reported their stolen information was used to open a checking account. Meanwhile, 15% said their information was used to open credit cards, and another 12% said it was used to acquire a new mobile phone.<\/span><\/p>\n Behavioral biometrics is a highly effective method to stop family fraud in all its forms, from innocent toddler mishaps to deliberate and malicious acts. Behavioral biometrics develops a deep understanding of how customers normally behave, preventing account takeover fraud<\/a> or other types of identity theft before any harm is done.<\/span><\/p>\n This understanding includes how a person normally handles their phone and interacts with their screen. Behavioral biometric solutions collect data on how users type, the direction they normally swipe on their phone screens, or how they handle a mouse or touchpad. These insights are critical to understanding whether the person handling a mobile device is the legitimate owner (of adult age) or a young child pushing buttons who doesn\u2019t understand what they\u2019re doing.<\/span><\/p>\n Having behavioral biometrics solutions in place – combined with behavioral analytics solutions, which analyzes what users do on their devices and how they do it by looking at unusual times of day to log in or unfamiliar geolocations – is critical to preventing fraud before it can even reach the transaction stage.<\/span><\/p>\n Behavioral biometrics (combined with behavioral analytics, malware detection, and other safeguards) is an important component for banks to trust their customers and ask the question \u201care you really you?\u201d at each step of their journey. Having this type of solution in place that can read the gestures and hand motions of the user could mean the difference between stopping an unauthorized or unintentional purchase and getting stuck with furniture you can\u2019t return.<\/span><\/p>\n At the end of the day, a toddler buying furniture accidentally will make for some hilarious headlines, and the family will laugh about it for years. But this outcome is one of the rosiest (and rarest) imaginable. Other customers may be victimized by intentional fraud and have to deal with the financial fallout. That\u2019s why banks should prioritize ensuring their customers are who they claim to be and feel confident they can trust them based on their movements and gestures.<\/span><\/p>\n The technology to stop family fraud is widely available. Once the technology is in place, decisions over whether to trust a customer\u2019s purchasing decision should be\u2026.well, child\u2019s play.<\/span><\/p>\nFamily Fraud vs. Friendly Fraud<\/span><\/h3>\n
Behavioral Biometrics 101<\/span><\/h3>\n
Are You Really You?<\/span><\/h3>\n