Showing Fraud System ROI: How to Untangle the Layers Ahead of Uncertain Times
When the economy is uncertain, fraud soars. We saw it during 2008’s global economic crisis and amidst 2020’s instability. As rising unemployment, interest rates, and banking turmoil unsettle global financial landscapes, fraud also rises in tandem.
Today, as the Fed tinkers with interest rates and the economic outlook remains uncertain, many banks and fintechs are looking to do-more-with-less. This sets the stage for a critical evaluation of fraud prevention ROI—right when that prevention is needed most.
Proof-of-Value in Tightening Times
If you’re like most of the customers we see, your fraud prevention system is currently a stack of security layers. Ideally, these layers would seamlessly mesh together, creating a formidable defense against fraud. In reality, solutions piled on in silos have led to tangled fraud stacks of inefficiencies that slow down conversions. Fraud and finance teams get no clear line of sight into what tools are the most effective fraud prevention and proof-of-value measurement becomes nearly impossible.
At the same time, fraudsters are constantly evolving and adapting. Armed with PII data, advanced dark web technology, and a focused goal, they are equipped to fool many of today’s identity verification systems. It’s a bleak outlook.
Behavioral analytics offer hope in the form of streamlined risk-based decisions with easily traceable ROI. Trained to observe a range of user behaviors, behavioral analytics provide clear, real-time risk portraits. Instead of using biometrics or PII, behavioral analytics tie into digital body language, analyzing how users interact with various application fields and then ranking likelihood of authenticity.
Behavioral analytics streamline the customer onboarding process and provide capturable proof-of-value in tightening times. For applicants who show familiarity with their data, the journey becomes a breeze, improving your conversion rates. Conversely, for those who display unfamiliarity, behavioral analytics signal that additional security checks are needed. You can respond with the right level of friction per user and optimize the tools you already have in place—creating a fraud stack that’s leaner, meaner, and more adaptable for the challenges ahead.
With behavioral analytics, you secure your fraud defenses against a likely increase in sophisticated fraudsters, while providing a clearly measurable ROI in case finance ever shines the spotlight your way.
Want to learn more? Watch our Fight Fraud, Not Finance recorded webinar for a walkthrough of the best ways to untangle the value of your fraud stack in case finance comes knocking.