A new partnership aims to help retailers, banks, insurance companies and others struggling with account creation and account takeover fraud. Experian, the global data analytics firm known widely as one of the major credit bureaus, has partnered with BioCatch to provide its clients access to behavioral biometric technology. Behavioral biometrics tracks the way users interact with a traditional or mobile Website to evaluate the likelihood that the person accessing an account or opening a new one is who they purport to be. The significance of the technology as a fraud-fighting tool was underscored recently when Mastercard acquired a company whose main offering relies on behavioral biometrics.
While ATO and new account creation fraud originally targeted mainly banks, an increasing number of retailers and other merchants that enable users to establish accounts with payment cards stored on file for easier checkout are ripe marks for this kind of fraud. According to BioCatch, one Latin American e-commerce retailer prevented $1.8 million in new account creation fraud losses during the 2016 Black Friday weekend by implementing behavioral biometric technology.
“New account fraud ends up costing businesses and consumers a lot of money and headaches—and it’s only getting worse,” said Eyal Goldwerger, CEO of BioCatch. “We’re excited to be working with Experian to help prevent new account fraud, providing a completely new layer of security using behavioral biometrics by focusing on ‘how’ a user enters information into an application, not ‘what’ information is being entered.”
- Identifying and Preventing ATOs and New Account Creation Fraud
- Behavioral vs. Physical Biometrics