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Also, if the bank’s authentication mechanism includes text messages as a means of delivering one-time passwords, then taking over the victim’s number is an attractive way for criminals to authenticate fraudulent transactions or perform other operations within the banking session. OneSpan’s Cronto transaction signing solution creates a unique transaction signature for each transaction using data such as account numbers, transaction amount, and a time stamp. With OneSpan’s Mobile Security Suite, FIs can gain visibility into mobile channel risk and help to mitigate fraud. OneSpan’s Intelligent Adaptive Authentication (IAA) solution provides the precise level of security at the right time for each transaction, based on real-time risk analysis of user, device, and transaction data.

At the core of the problem, financial institutions (FIs) continue to increase spending on fraud prevention technology year over year. According to Aite Group’s Digital Channel Fraud Mitigation: Evolving to Mobile-first, “Compared to two years ago, digital channel fraud losses are up at 74% of large North American FIs, despite all the technology investments made in recent years. Additionally, today’s FIs must expand the use of AI/machine learning, risk analytics, behavioral analysis, and biometrics to reduce fraud, ensure regulatory compliance, and increase growth of online financial services by building more consumer trust across digital channels. By delivering a strong, consistent and friction-appropriate user experience across digital channels, today’s FIs will continue to grow revenue, bring new solutions to market fast, and quickly exceed customer expectations which drives higher services utilization and precious loyalty.

I recently returned from the IDC Banking & Finance Congress in Riyadh, where cybersecurity and compliance with regulations such as the SAMA Cyber Security Framework were as much a part of the discussions as digital customer experience. The need to protect data, transactions, devices, and users through fraud prevention, mobile app security, and strong customer authentication is becoming deeply embedded in banks’ growth strategies. To improve resilience against cyber threats, the Saudi Arabian Monetary Authority (SAMA) introduced of the SAMA Cyber Security Framework in May 2017. To protect customers’ data and financial assets by using strong authentication to secure the customer’s login to online and mobile banking.

Driven by machine learning, new approaches to digital identity verification will enable FIs to process high volumes of new account opening applications at a rate unachievable by human experts. New and old attacks on mobile devices and applications seem to appear daily, yet financial institutions and organizations are still not taking proactive steps to protect the user’s apps on their devices. The use of artificial intelligence in fraud detection reduces false positives, because AI is capable of analyzing a much larger set of data points, connections between entities, and fraud patterns — including fraud scenarios not yet known to fraud analysts. Machine Learning Will Further Power ID Verification Methods for Account Opening As fraudulent transactions continue to rise, the need for strong, customer-friendly identity verification becomes critical.