Market Analyst KuppingerCole & HID’s Fraud Prevention Offering
New Executive Report Details the Top Three Types of Fraud Hitting Businesses Right Now — and How HID Solutions Address Them
Fraud is on the rise, and while the numbers are eye-popping (estimates suggest the total cost will reach nearly $10.5 trillion by 2025), complexity is also a huge concern. As criminals get more adept and creative, businesses are struggling to evaluate solutions designed to combat different security threats. Understanding how various types of fraud prevention software work — and how these offerings stack up and complement each other — is increasingly important.
Analyst firm KuppingerCole conducted an extensive Executive Review of HID Global’s fraud prevention offering, consisting of three central solutions: Identity Verification Service, Risk Management Solution and HID Approve. This blog post highlights some of the key details financial institutions and consumer-facing websites can use from that report, beginning with the most prevalent ways fraud is being committed.
Top 3 Types of Fraud Affecting Business Today
There are countless ways that criminals attempt to get around carefully placed security measures protecting customer and business data. But the most common in use today can be classified as:
- Account Takeover Fraud (ATO) — A fraudster impersonates an existing account holder using credential stuffing attacks or stolen passwords to access their accounts and conduct illegitimate transactions.
- New Account Fraud (NAF) — Also known as Synthetic Fraud or Account Opening Fraud. A new account is created using stolen personal information, unbeknownst to the real person whose name and other details are being used. Social distancing and the desire for convenience drive companies — even in financial services and healthcare — to vet new customers entirely online, creating novel opportunities for deception.
- Social Engineering Voice Scams — Also known as Authorized Push Payment fraud. A real person calls an unsuspecting target pretending to be a representative from a legitimate firm in order to obtain personal or financial information. These attacks are surprisingly effective, often using the guise of time-sensitive (non-existent) threats, like an account being compromised.
Snapshot of HID’s Fraud Prevention Capabilities
HID Global’s fraud prevention offering is comprised of three solutions, covering the end-to-end consumer lifecycle.
Identity Verification Service
What is it? An intelligent out-of-the-box solution with built-in eKYC requirements ensures that new customers are who they say they are, even if their onboarding is entirely digital.
How does it work? Users are prompted to scan their government-issued ID via a smartphone app or via a web browser, conduct a quick liveness test via a selfie, and perform real-time biometric matching. Behind the scenes, the information submitted is automatically validated through AI-powered technology and vetted against numerous trusted, authoritative sources.
What caught analysts’ eye? Low-code SDK option; strong tamper resistance; built-in identity proofing.
Risk Management Solution
What is it? A way to continually monitor, detect threats and prevent fraud by using deep behavioral profiling and machine learning.
How does it work? Unobtrusively collects and analyzes an exhaustive and constantly updated set of risk-related data points generated by the user, device and session.
What caught analysts’ eye? Addresses many of the most prevalent fraud types, including SIM Swapping, ATO, synthetic fraud, banking overlays and other malware designed to obtain user credentials; allowance for real-time risk decisions.
What is it? A push notification-based way for customers to authenticate themselves and sign transactions on mobile devices.
How does it work? Consumers login or sign transactions with an intuitive swipe motion using the most robust security protocols and cryptographic standards. This solution can be fully integrated as part of an organizations existing mobile app or as a standalone mobile app.
What caught analysts’ eye? Absence of personal information included in push notifications; out-of-band communication protected by device-specific keys; suitable for B2B, B2C, B2E and G2C use cases.
The Bottom Line
In short, KuppingerCole singled out these key strengths when considering HID’s fraud prevention offering overall:
- Identity proofing and authoritative attribute queries supported out-of-the-box
- Strong credential issuance capabilities trusted by numerous government agencies globally
- Digital identity verification
- Intuitive admin and fraud analyst interfaces
- Secure mobile SDK for device intelligence and behavioral biometrics, including innovative modalities
- UBA considers transaction level details
- Pertinent security certifications
- Incident response and site takedown services
Katie Björk is the Solution Marketing Manager for HID Global’s Consumer Authentication business unit. She has over 15 years experience in communication and change management strategy. Katie has successfully implemented, communications, change management and product strategies for several large companies globally. In her current role, Katie is a member of the business unit’s leadership team and focused on ensuring the delivery of an unparalleled user experience in the world of consumer authentication.