According to the 2017 Identity Fraud Study released by Javelin Strategy & Research, in 2015, there were more than 1.5 million new account fraud victims that accounted for losses of $2.8 billion. This number increased by 40% in 2016, and there is no reason to believe that this trend is stopping anytime soon. In fact, some statistics show that new account fraud accounts for 20% of all fraud losses.
The financial implications are just the beginning of the consequences of this type of fraud. The cycle of new account fraud usually begins with a massive hack, like of the IRS in 2015 or Anthem Health that same year, where enormous amounts of personal information become available for sale on the dark web. Then through a purchase of as little as $2, a fraudster can assume a stolen identity.
With valid information at hand, therefore, fraudsters are able to circumvent standard credit and background checks at an alarming rate. By looking at how information is entered as opposed to just the information itself, behavioral biometrics have emerged as one of the only tools available to stop this type of fraud. Behavioral biometrics is a technology that analyzes the human-device interactions of an individual. Fraudsters exhibit certain behavioral patterns and characteristics that legitimate users do not. By understanding how fraudsters behave and being able to recognize them in real time, new account fraud can be eliminated. This white paper will introduce behavioral biometrics as a class of technology, and discuss the three main behavioral areas that are analyzed to prevent new account fraud.
Sponsor Content From