{"id":109077,"date":"2022-07-12T09:00:45","date_gmt":"2022-07-12T09:00:45","guid":{"rendered":"https:\/\/feedzai.com\/?p=109077"},"modified":"2024-04-09T09:15:49","modified_gmt":"2024-04-09T09:15:49","slug":"why-digital-trust-is-critical-for-fraud-prevention","status":"publish","type":"post","link":"https:\/\/feedzai.com\/blog\/why-digital-trust-is-critical-for-fraud-prevention\/","title":{"rendered":"Why Digital Trust is Critical for Fraud Prevention"},"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=”109079″ dynamic=”yes” media_width_percent=”100″ uncode_shortcode_id=”606625″][\/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=”990199″]Today\u2019s bank customers have grown accustomed to interacting with their financial institutions (FIs) digitally \u2013 from the moment they onboard to the end of their relationship. This is why it\u2019s more important than ever for FIs to ensure that they truly know the person they are dealing with and make <\/span>digital trust<\/span><\/a> central to any fraud prevention and detection strategy.\u00a0<\/span>[\/vc_custom_heading][vc_column_text uncode_shortcode_id=”160179″]<\/p>\n There are two key reasons why banks and FIs must incorporate digital trust into their fraud prevention strategy. The first is the rapid expansion of digital banking. The second is the rise of faster payments.<\/span><\/p>\n In an environment where banks are unlikely to meet their customers in person and funds can be lost in a matter of seconds, it\u2019s critical for financial institutions to layer digital trust into their digital identity management capabilities. There is no silver bullet or single infallible verification mechanism. Even fingerprint recognition, for example, can be breached.<\/span><\/p>\n Realizing the importance of implementing digital trust for fraud detection and prevention is just the first step for financial institutions. It\u2019s equally important to understand the components of a successful digital trust suite.<\/span><\/p>\n Digital trust solutions protect customers from malware that has infiltrated their devices by detecting if an <\/span>account takeover (ATO)<\/span><\/a> attack is underway or if another actor has hijacked an online session. The solutions interrupt the online session to warn the device owner of the fraud risk. While this briefly interrupts the customer experience, it ultimately spares them from a more serious problem.\u00a0<\/span><\/p>\n In addition to monitoring for malware, digital trust also looks for links between a user\u2019s device and other accounts. The solution checks whether the other accounts have any record of criminal activity. This insight enables FIs to determine if the user\u2019s device can be trusted. If the device is new to the user (e.g., logging in from a public computer or a brand new smartphone), the solution can ask if the device should be trusted.\u00a0<\/span><\/p>\n Digital trust solutions monitor the networks that the user typically accesses. The solution checks if the user is logging in on a different network or if their Wi-Fi connection is suddenly in a different part of the world. It might not be unusual for a particular user to log in from a different country. That\u2019s why it\u2019s important to understand users’ normal behaviors and assess whether shifts in their networks are unusual.<\/span><\/p>\nManaging Digital Identity in the Digital Banking Age<\/span><\/h3>\n
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\n<\/span>Every digital banking channel represents a way for customers to connect to their bank online. Regrettably, digital channels are also an avenue for fraudsters to exploit. Fraudsters\u2019 deceptions are more likely to succeed in the digital era, especially when bank personnel are less likely to meet a customer face-to-face.<\/li>\nThe 4 Key Components of Digital Trust Fraud Prevention Solutions<\/span><\/h3>\n
1. Malware Defense<\/span><\/h4>\n
2. Device Monitoring.\u00a0<\/span><\/h4>\n
3. Network Monitoring\u00a0<\/span><\/h4>\n
4. Behavioral Analysis<\/span><\/h4>\n