With fraudsters rapidly growing in sophistication, the Financial Ombudsman has said “it’s not fair” to automatically blame customers for falling victim to banking fraud. With more and more stories surfacing where scammers have been able to bypass simple security checks and move a victim’s money around freely, what can banks do to better protect their customers from the risk of fraud?
Zia Hayat, CEO and Founder of Callsign, the London-based identification company, said: “When it comes to banking, we understand there is a conflict of interest; consumers want to get on with their digital lives without unnecessary layers of security every time they click through a payment journey, however, they also want to know their money is safe and secure and are willing to take the necessary steps to ensure this. A simple code sent to the consumer to verify their identity just isn’t enough in today’s world.
“Banks need to be able to intelligently decide when to add additional layers of security, by combining the benefits of both hard and soft biometrics with machine learning they can be truly confident the person moving money is who they say they are. Technology that learns the unique behaviours of customers, such as typing or swiping techniques, online habits and facial recognition will help determine whether someone’s behaviour is within their normal pattern. Where these identifiers throw up anomalies the bank then knows to introduce further tests. Also, consumers need the freedom to choose their identification method, eliminating the risk of isolating an entire demographic due to technology or restrictions on mobility. Combined, this approach avoids a static rules-based method that we have seen can be easily replicated by the bad guys.
“With better intelligence, banks can protect their customers while still providing the seamless, friction-free service they expect from their digital experiences.”