vision 2014: technology and fraud trends update - beyond current authentication
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Technology and fraud trends update — beyond current authentication
Chirag Bakshi Zumigo
Stephen Ufford Trulioo
#vision2014
Vipul Vyas Victrio
Dan Elvester Experian
2 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.
User authentication has been utilized since the early days of multi-user systems
User ID and passwords have dominated methods of authentication
Organizations are tasked now more than ever to effectively authenticate consumers from origination to account maintenance
A wide range of new services – providing higher levels of trust have been developed
How does this evolution provide the changing environment for your organization to adapt and adopt these new services
Purpose Why are we here?
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What are the current authentication methods? What is working?
New technologies supporting the use of social media data
The use of device – mobile tokens and location as a passive form of authentication
The next generation of biometrics – passive voice biometrics for use in a call center and beyond for authentication
How these technologies align with the current authentication trends
How can “new” technologies support the changing growth – like mobile
Purpose Why are we here?
4 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.
Introduction of panel
Stephen Ufford
Stephen has had the
pleasure of founding,
building and selling
several consumer
data focused startups
over the last decade
working in the role of
CEO
Vipul Vyas
Vipul helps Victrio’s
financial and wireless
carrier clients
develop their needs
for fraud detection
and identity
confidence solutions
Chirag Bakshi
Zumigo was founded
by Chirag Bakshi, a
veteran of the mobile
industry and Silicon
Valley, and previously
Vice President and
General Manager of
the VeriSign Mobile
Messaging business
5 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.
Stephen Ufford, Founder & CEO
Serial entrepreneur specializing in consumer data for over 10 years
Three previous exits to Experian and others
Chosen as Top-40 under 40 business people in Canada
Trulioo
Identity bureau covering over 700 million people
$10 M in funding
Top-20 Canadian start-up
35 employees
Trulioo Who we are
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Trulioo What we do
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Innovation and experience
First large scale voice biometric fraud detection service in the world
Acquired by Verint in December of 2013
Multiple patents and largest shared global fraudster voice print database
Offers real-time, near-real, hosted, and on premise managed services
Victrio Who we are
2013
Proven customer success at scale
Fraud detection service deployed at two of top three U.S. credit card issuers
On track to screen 100M+ calls in 2013
Over 25,000 fraud calls analyzed
Over 150 organized crime rings identified and tracked
Over 50 fraudster MOs identified and tracked
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Victrio What we do
Whitelist and
blacklist
databases
On-premise
moderate
integration
Real-time
Identity
confidence
authentication
ID confidence
suite
Authentication
engine
On-premise
deep integration
Real-time
Real-Time
Decisioning
Engine
Machine
learning
driven
decision
engine
“Blacklist”
databases only
(Shared/silo’d)
Hosted or
on-premise
Near real-time
or real time
Fraud prevention
9 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.
Founded 2009
Venture capital backed
Team is experienced with mobile networks and financial institutions
Zumigo Who we are
Zumigo leverages mobile network data
to secure financial transactions, identify
devices, authenticate access, validate device
ownership and enable location-based
marketing
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Zumigo Assure
Zumigo
Reach
Validate devices
with multi-factor
validation
leveraging the
network
Device
authentication
Zumigo compares
the merchant
location to the
phone’s location
Transaction
monitoring
Market to
customers based
on their current
location
Marketing with
location in
context
Zumigo Assure
Authentication
Zumigo Assure
Zumigo Assure
Radius Zumigo Assure
KYCD
Associate
customers to the
devices they own
Know your
customer and
device
Zumigo What we do
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Identity theft and associated fraud continue to plague institutions and their customers
Organizations are tasked now more than ever to effectively authenticate customers or prospects throughout the customer life cycle from new account origination to account maintenance
Fraudsters often know the basic consumer information of their potential victims, such as: date of birth, Social Security number, current address and mother’s maiden name
What do we do today? Authentication in 2014
So how can some these new technologies play a role in moving forward?
Continued use of:
► Name
► Address
► Phone
► Date of birth
► Social Security number
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Client data, device reputation, e-mail, social media, biometrics, location services
Where and when is it applicable?
► Channels
► Applications
► Transactions
Today our panel is going to discuss
► The use of new technologies
► What works for their markets
► Their consumers
► Best practices and new means of providing authentication
Looking forward Beyond 2014
But first, – let’s examine some of the current authentication trends
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Authentication trends
Trend Impact Industry response
Customer experience generally
trumps all other business drivers
Client spend and business case /
ROI is founded in customer
experience improvement and cost
save
Adjustment of
fraud/authentication tools to
maximize positive authentication
results and minimize false
positives/negatives
Mobile access and capabilities
continue to expand
Less PII available for use in
authentication. Device now a
measurable element in
authentication.
Integration of both identity
authentication and device risk
assessment. Consortium and
velocity checking more important.
PII becoming more sensitive and
less available
Online identities migrating toward
name/email/phone/device only
Data access, analytics, and
decisioning recalibrating to
minimal data. Alternate data
assets (negative and positive) are
critical.
Enterprise data aggregation and
decisioning remains the ultimate
goal
Client data and vendor services
integrated more centrally for
hub/spoke access and action
Real-time access and update to
identity risk profiles throughout
the customer lifecycle
14 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.
Authentication trends
Trend Impact Industry response
Top fraud threats continue to be:
Application fraud
First party fraud and
synthetic ID
CNP
Counterfeit
Mobile payment/deposit fraud
Cross channel fraud
Clients continuing to evaluate
and reallocate resource spend to
align with fraud risks and
migrations
Custom analytics more the norm
for larger/sophisticated clients.
Enterprise-wide view and
decisioning critical to combat
more effectively
Vendor platforms continuing to
evolve to deliver:
• Custom analytics
• Link analysis
• Identity and device risk
assessment
Alternate authentication
services (e.g., biometrics,
device, consortium, client data)
Account transaction risk
assessment and identity risk
assessment must be married in
real-time at all points in the
lifecycle
KBA still in use but altered – ex.
FFIEC calls out risks in ‘secret
questions’ and recommends
dynamic KBA.
Static KBA not being utilized as
much as dynamic
KBA used more tactically and
sparingly alongside analytics and
access strategies
Client derived questions in play
KBA service providers
delivering questions as driven
by analytics and initial risk
profile assessment
Question performance a
narrowing element in overall
decisioning criteria
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Questions for the panel
Stephen Ufford – Trulioo
Vipul Vyas – Victrio
Chirag Bakshi – Zumigo
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Bringing it all together through Precise IDSM A single platform
Precise IDSM
Knowledge IQSM
Credit Card
Verification
Tokens –
certificates that
become part of
the mobile
device
Enhanced
phone services
for additional
levels of
authentication
for cell and non-
published
numbers
Experian clients
Knowledge IQSM
questions
formatted to mobile
devices
Continued
expansion of
data assets
Device
fingerprinting
provides greater
visibility of the
online
transaction
and behavior
Biometrics
voice fingerprint
verification
Location based
mobile services
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We have heard from the experts in cyber media
► Voice biometrics and location based services
There is no “silver bullet” – however, as consumers change how they want to be authenticated new services must be part of the process
We must be able to integrate with current authentication methods
Focus must always be on the consumer experience
Experian fraud and identity services “bring it all together”
Conclusion
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“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
‘Charles Darwin’
Challenge for all of us…
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For additional information, please contact:
Dan.Elvester@experian.com
Hear the latest from Vision 2014
in the Daily Roundup:
www.experian.com/vision/blog
@ExperianVision | #vision2014
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