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A majority of North American financial institutions plan to invest in machine learning analytics to help combat fraud, according to a new report by global research and advisory firm Aite Group and authentication and fraud prevention technology provider iovation. It’s clear that the threat environment continues to escalate, the report said, and effective fraud prevention is an increasingly competitive issue for financial institutions. The study was compiled from interviews with 28 senior fraud and data analytics executives at 20 North American financial institutions.
– Information Management
iovation, the leading provider of device-based consumer authentication and fraud prevention solutions, today announced the achievement of a new certification under the U.S. Department of Commerce’s EU-U.S. Privacy Shield Framework, effective October 3, 2017.
The EU-U.S. Privacy Shield Framework, developed by the European Commission in conjunction with the U.S. Department of Commerce, offers a regulated system for data flows between the European Union and the United States, ensuring organizations protect and process personal data to standards acceptable in the European Economic Area. Governed by the International Trade Administration (ITA) within the U.S. Department of Commerce, the framework holds certified U.S. businesses to the highest level of data privacy protection. Achievement of the EU-U.S. Privacy Shield certification reflects iovation’s pursuit of a larger security and compliance initiative, ensuring comprehensive preparation ahead of the EU General Data Protection Regulation (GDPR) legislation, which goes into effect in May 2018.
“Privacy and data protection are integral to doing business on a global scale, and certification under the Privacy Shield Framework echoes iovation’s continued effort to help our customers fight fraud without putting their user’s privacy at risk,” said Mark Weston, Compliance Manager and Data Protection Officer for iovation. “Certification under the Privacy Shield Framework is a significant step on the path to GDPR compliance and further proof that we’re diligently working to safeguard how consumer data is managed and processed.”
Now that iovation has made the public commitment to comply with the Privacy Shield Framework’s requirements, adherence to the its principles are enforceable by law. iovation continues to take measures to ensure the protection and privacy of its customers’ data, including minimising the amount of personal data collected and ensuring that it is secured according to industry accepted best practices.
The combination of trained fraud experts and machine learning promise a best way forward for financial institutions in the battle against fraud, in today's omni-channel experience. Findings from a new report by iovation showed that while 68% of financial institutions (FIs) cite ML analytics as a high priority investment over the next few years the path to adoption will not be without its challenges. iovation and Aite Group will be hosting a webinar at 10AM PST on November 9th to discuss the results of this survey.
– Information Age
iovation, the leading provider of device-based consumer authentication and fraud prevention solutions, today released insights from its latest report conducted in partnership with global research and advisory firm Aite Group, “Machine Learning: Fraud is Now a Competitive Issue”. The study centers on the progress toward using machine learning (ML) analytics for improving fraud mitigation and customer experience. Findings showed that while 68 percent of Financial Institutions (FIs) cite ML analytics as a high priority investment over the next few years the path to adoption will not be without its challenges. iovation and Aite Group will be hosting a webinar at 10AM PST on November 9th to discuss the results of the survey.
It’s clear that the threat environment continues to escalate, and effective fraud prevention is an increasingly competitive issue for FIs. Organized crime rings, armed with billions of stolen data records, are targeting the financial services industry with sophisticated card fraud, application fraud, account take-over (ATO) attacks, wholesale ATO and the specter of faster payments, all of which were cited among the top pain points for FIs today in the Aite research.
“What this study highlighted is that those who are early adopters of advanced machine learning analytics will be able to greatly reduce fraud while also improving the customer experience, giving those FIs a decided edge over their competitors who lag in these advancements,” said Julie Conroy, Research Director for Aite Group’s Retail Banking & Payments practice and author of the report. “Data is the new currency, and creating intelligence from data at scale requires machine learning technology.”
With the omni-channel approach to consumer engagement there are several points of interaction (ATMs, call centers, email, etc.), for hackers to gain access to personal data. In fact, cross-channel fraud was mentioned throughout the interviews with fraud and analytics executives as a key attack vector. All of this points to why FIs must embrace machine learning analytics to spot patterns and holistically prevent fraud at each point of contact with stronger yet more convenient authentication measures, which will ultimately improve the customer experience.
“Hackers see FIs as the perfect target for fraud. And, if you pile on the intense pressure to make the banking experience easier and more frictionless for customers it’s clear that FIs need a solution that will make significant improvements to their fraud fighting approach,” said Eddie Glenn, Product Marketing Manager for iovation. “We are seeing FIs turn to machine learning analytics as the foundation for a broader solution. Leveraging the vast amount of customer data at their disposal and applying advanced, machine learning techniques, FIs can create insights that allow them to better predict new fraud types they have not seen before as well as implement more contextual authentication measures that can understand the relative risk of a given transaction to ensure a more seamless experience for retail bank consumers.”
One of the misconceptions about machine learning is the perception that ‘unsupervised models” in which sophisticated algorithms alone will become the prevalent model to identify and reduce FI’s exposure to fraud will be the ultimate arbiter of whether a transaction is potentially fraudulent. However, according to the report, the majority of the installations of ML among the FIs interviewed use some type of combination of scoring generated by ML and highly trained fraud experts to continually refine and improve their models. In fact, fifty percent of respondents are using entirely supervised techniques or primarily supervised. While unsupervised models might be the goal in the long term, supervised and semi-supervised models in which trained fraud experts provide input to better train and fine tune their ML models are critical to creating a fraud prevention system that can proactively identify fraudulent activity while reducing the incidence of false positives that can negatively impact the customer experience.
The report was compiled from interviews with 28 senior fraud and data analytics executives at 20 different North American financial institutions. These interviews were conducted by Aite and took place during August and September 2017. To access the full Machine Learning: Fraud is Now a Competitive Issue report, please visit: https://www.iovation.com/resources/reports/machine-learning-fraud-is-now-a-competitive-issue
Until today, anti-fraud, security and authentication activities in organizations have operated as largely-separate domains, with IT Ops even more separated, in most cases. This is due, in part, to the "silo mentality" in enterprises, where it's more convenient to have a bunch of teams running their own disciplines. After all, collaboration and synchronization increase the degree of difficulty. Politics, momentum, status quo, and decentralized operations that use third-party providers are also contributing to the current operational division. Given the escalating threat environment and evolving data protection requirements, I think it's high time we began converging these siloed efforts.
New fraud prevention tools such as device fingerprinting have the potential to shift the function of fraud teams away from being simply cost centres towards becoming an integral part of operators’ sales and marketing effort, says iovation’s Eddie Glenn. Download the PDF and go to page 106 to read the entire article.
– iGaming Business - Issue 106
Fraud Protection expert Dwayne Melancon is the VP of Product at iovation. He says it’s a good idea to freeze your credit immediately. “Regardless of whether you’re affected or not, I recommend freezing your credit report. So you can either go to each of the three credit bureaus individually, or you can go to a aggregator. There are a lot of services like Lifelock or Identity Guard that will do that work for you. They’ll work with all three credit bureaus and freeze your credit.”
While financial firms and other companies targeted by cyber-criminals and fraudsters have begun moving away from using such “knowledge-based factors” to verify their customers, most companies are not so sophisticated, Dwayne Melancon, vice president of product for fraud-prevention firm iovation, told eWEEK. “Companies that are relying on knowledge-based assessments—they may need to add additional factors,” he said. “They need extra safeguards— some which will be burdensome, such as proof using documentation—others could use some sort of device-based check.”
As our world grows more connected and hackers become more sophisticated, businesses need to plan ahead and act fast to protect sensitive information and bolster their cybersecurity approach. Read on for a few dos and don’ts on how businesses can fortify their security posture and avoid being a target of cybercrime.
I play a lot of video games and one of the things I’ve noticed is that when you first start playing, the game often keeps you from venturing into places where you’re likely to fail... That got me thinking: is there an equivalent model we can use for providing more access in our corporate or application environments? Using a combination of authentication and access privileges, it seems we ought to be able to create an environment in which we start them off with less complicated capabilities in our systems and software, then gradually “unlock achievements” for them as they demonstrate competency within our world.
– HelpNet Security
iovation, whose software is used for online fraud detection, in January hired Weston to spearhead GDPR efforts and tap his expertise as a privacy expert based in the United Kingdom. The company has a working group of managers tackling GDPR. So far, Weston said the company hasn’t introduced any major product changes but other elements of the business have been impacted. “Behaviorally, the way the data is handled — who it’s shared with and how long it’s kept — all that has come under scrutiny,” he said. “It’s good practice for anyone. I have been fortunate the executive team realized the challenges and opportunities ahead.”
– Portland Business Journal
Ahhhhh, summer. It’s officially here. The sun is shining, the birds are chirping and would-be fraudsters are eager to launch their latest cyberattacks against relaxed, unsuspecting vacationers. Their newest tools can compromise your identity faster than your email can send an “Out of Office” response. Whether you’re hitting the same old beach town or taking a cycling tour of Provence, follow these Top Five steps to stay cyber secure while soaking up the sun.
– HelpNet Security
Most of the organizations I speak with are talking about cyber-risk these days, and for good reason. Unfortunately, many of them are doing a lot more talking than actually doing. Some of this is human nature – threats are “somebody else’s” problem until they hit close to home, and it’s no different in cybersecurity. Often, the risk only starts to feel real once it’s too late.
The best way to combat the shortcomings of SMS based 2FA isn’t to just move where that authentication code is received—some 2FA alternatives provide codes generated standalone apps, which would require compromising a device itself to access—but to change how login attempts are authenticated. "The world that we're going into is going to require multiple factors,” Thelander said. “It's going to require layers of authentication that can be delivered at a point and time based on the level of risk of what a user is trying to do and the level of risk that is detected."
– International Business Times
In fact, the number of debit and credit cards that were exposed to hacking efforts at U.S. ATMs and stores jumped 70% in 2016, according to a report from data analytics and credit scoring company, Fair Isaac Corporation (FICO). In addition, what’s known as “card-not-present” fraud — fraudulent transactions that occur when the card isn’t physically present — is expected to cost merchants and retailers $7.2 billion by 2020, according to a report by iovation, a provider of digital intelligence for fraud prevention.
iovation, the leading provider of device-based consumer authentication and fraud prevention solutions, today announced that it has entered into a partnership with Ping Identity, the Identity Security Company. iovation has been invited to join the company’s Technology Alliance Program alongside a thriving community of security industry stalwarts. The partnership combines the power of iovation’s fraud intelligence network to detect unauthorized access with Ping’s seamless and secure customer identity and access management (CIAM) offering. PingFederate customers are able to leverage iovation’s consortium of 4,000 fraud experts who work together in real-time to both combat fraud at log-in and enhance trust for the customer single sign-on experience.
“The partnership between Ping and iovation extends Ping’s CIAM solutions to protect customers at the most vulnerable point of the user experience,” said Andre Durand, CEO and Founder, Ping Identity. “The combination of iovation’s device intelligence along with PingFederate’s API can provide greater assurance for consumers using unmanaged and third-party devices.”
According to the 2017 Verizon Data Breach Incident Report, the fastest growing cause of cybercrime today is due to compromised credentials. Considering nearly three billion credentials were compromised and made available on the Dark Web in the last 18 months alone, it’s clear that traditional authentication methods, like user names and passwords are no longer a sufficient guarantee to protect enterprise applications against data breaches. While the threat environment grows more ominous by the day, businesses are racing to bolster their security approach and improve their customers’ web experience.
iovation’s ClearKey device-based authentication and FraudForce solutions integrate with PingFederate, a secure federation server that provides single sign-on and API security for provisioning customer identity and access management. ClearKey works in conjunction with PingFederate to provide contextual, adaptive and risk-aware insights. The combined solution enables PingFederate to detect unauthorized access and prevent account takeover attempts by dynamically providing choices for multi-factor authentication while enhancing the consumer authentication experience.
“Enterprises today are struggling with managing the complexity of third-party and unmanaged devices where they lack visibility and control. iovation’s solutions enhance PingFederate single sign-on to take advantage of iovation’s unique fraud and risk insight that provides context-aware intelligence to thwart account take over at log-in,” said Greg Pierson, CEO of iovation. “To this end, we’re excited that this partnership with Ping Identity will help enterprises protect their customers and provide a frictionless yet strong authentication experience for the customer, especially while protecting access to applications via PingFederate.”
ClearKey and FraudForce seamlessly integrate with PingFederate to enhance the customer identity and access management experience.
For more information about iovation’s authentication and fraud prevention solutions, visit www.iovation.com.
In this guest post to CSO Online, iovation's VP of Product, Dwayne Melancon, explores the intrinsic insecurity of two-factor authentication and how a range of 'modern authentication solutions are emerging that provide the balanced approach we’ve been looking for - robust and context-aware security strong enough to protect a business and its customers, while also delivering an authentication experience that people will actually want to use'.
– CSO Online
Findings from the report, Combating False Declines Through Customer Engagement, show that a large contingent of connected consumers are unforgiving of the inconvenience of a false decline. More than 42 percent of respondents said that a false decline would motivate them to leave their banking institution altogether.
– Retail Customer Experience
“False declines have a material impact on an issuer’s business. While lost transaction revenue is painful, damage to the issuer’s relationship with their customer is of far greater concern,” said Michael Thelander, director of authentication products for iovation. “Banking and financial institutions need to balance security levels with user experiences. Consumers are open to a range of authentication methods as long as they are easy-to-use. Dynamic multifactor authentication does just this by balancing security and user experience by adding flexibility to authentication.”
– Payment Week