Page 8 - Security Today, September 2020

More Secure Banking Turning to technology as safe and trustworthy passwords
By Simon Marchand
To be successful in financial services, banks, investment firms and other institutions need to prove to their customer base that they are safe and trustworthy. Yet many still rely on passwords, PINs and other knowl- edge-based authentication factors—which are not only unreli- able, but also insecure.
Using the Same Passwords
According to a 2019 Harris poll, 66 percent of Americans reuse the same passwords for their online banking, email and social media networks. The same survey shows that 75 percent of respondents have trouble remembering their passwords. These relics of authentication can be easily stolen, hacked or forgot- ten—representing challenges to both customers and institutions.
To improve both the trust of clients and the security of in- stitutions, banks and other financial organizations must turn to new technologies to help them protect against fraud. In its many forms, AI has proven to be extremely useful when it comes to fraud prevention by allowing organizations to use algorithms to determine whether or not certain activities should be deemed sus- picious. Other forms of AI, such as biometrics, can use voice and behavioral techniques to identify legitimate customers through their biological makeup or through information that can be aug- mented from external factors, such as the device print or location.
Here’s how technology-driven solutions give companies the level of protection that their customers need and the service they expect. Safer transactions In 2019. Banks around the world lost about $2.8 billion to fraudsters and fake transactions. With these losses
amounting to billions of dollars annually, fraud can mean trouble for both the customers using these financial institutions and for the bottom lines of the banks themselves.
Fraud Solutions. Traditional transaction-based fraud solu- tions aren’t enough anymore. Banks must have a more holistic approach, focused on detecting the individuals committing the fraud instead of focusing on suspicious transactions. It’s the only way to disrupt the fraudsters’ business model and to effectively reduce the financial losses from fraud.
Identify fraudulent activity. By turning to technology-based solutions, banks and other organizations can quickly identify and stop fraudulent activity before the fraudster can commit the crime. New technologies can constantly monitor customers’ bank accounts and freeze the accounts or send a push notification to another device when suspicious activity is detected. This prompts the account holder to call an agent or perform a task to unlock the session, making it impossible for a fraudster to gain access — even if they manage to steal the device.
For example, with AI and machine learning in place, insti- tutions can use models to detect irregular activity in real-time, blocking suspicious transactions before they occur. Likewise, with biometrics, it’s incredibly hard for a criminal to steal a per- son’s biological makeup — such as a voiceprint — this makes it less likely for a fraudster to get through the system. Additionally, biometrics reduces the risk of social engineering of call center agents. But biometrics also can be used to detect fraudulent in- teractions in the very first seconds, giving the opportunity to stop fraudsters in their tracks.
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