Omnichannel Fraud Prevention: Managing Risk in a Digital Age

When we think about the evolution of the financial industry in less than two short decades, it is quite astonishing.  I worked in a bank during my college years, back when customers would come into the branch to ask why the account balance reported from the ATM machine did not match the balance I had provided to them on their deposit receipt. The Call Center was just starting to enable transfers via inter-bank accounts.  The Internet existed during this time, but it was still not mainstream.  We were a few years away from the revolution of online banking.

The growth of online banking happened fast, and then the growth of mobile banking even faster.  In 2012, RSA saw just over 10% of all transactions originate in the mobile channel, and today, that number is over 50%.  Despite some consumers still citing security concerns, the mobile channel has become as much a preferred channel to transact as the Web, especially among millennials.

As with anything, the introduction of new channels not only introduces more risk of fraud, but also greater challenges in obtaining omnichannel visibility across all points of customer interaction.

As an example, mobile fraud outpaces web fraud today. According to RSA’s data science research, more than 60% of fraud originates from mobile devices. It used to be mobile browsers that were fraud heavy, but now 80% of mobile fraud comes from mobile apps.

It’s a natural shift for cybercriminals given that many banks (Read more...)

*** This is a Security Bloggers Network syndicated blog from RSA Blog authored by Heidi Bleau. Read the original post at: http://www.rsa.com/en-us/blog/2018-03/omnichannel-fraud-prevention-managing-risk-in-a-digital-age.html