Application fraud fuelling biometric demand
09 August 2017 14:50 GMT

As application fraud continues to escalate, more and more companies are seeking biometric solutions, says LexisNexis.

The company revealed today that it plans to work with behavioral biometrics firm BioCatch on such fraud scenarios.

"Application fraud is a growing threat that cannot be addressed with static means," said Paul Bjerke, vice president, fraud and identity management, LexisNexis Risk Solutions. "In light of the vast array of data breaches over the past few years, supplementing applicant-provided data with additional dynamic data sources, like behavioral biometrics, is key to addressing application fraud and account takeover."

As a result of this new relationship, companies will receive additional risk scores through the LexisNexis Risk Defense Platform that expand on the data typically provided by the customer (which can be compromised) by analyzing how the user behaves (which is innate).

During the application process, this solution monitors behavior and is able to discern between a real user and an impostor. This approach is achieved by recognizing normal user behavior and fraudster behavior, which includes Application Fluency, how well a user knows the site; Navigational Fluency, how well a user knows various computer functions, and Data Familiarity, how well a user knows the information they are entering.  

"Behavioral Biometrics is fast emerging as a unique tool to secure digital identity while protecting the online user experience. We are thrilled to be leading the way by teaming with LexisNexis Risk Solutions and to provide a seamless, integrated solution to a marketplace that continues to be threatened by various cyber threats, that drain businesses and consumer confidence," said Eyal Goldwerger, Chief Executive Officer of BioCatch. "By understanding 'how' a user enters information into an application, and not 'what' information is being entered, we are able to change the rules of the game and seamlessly provide a completely new level of identity assurance in an era of rampant identity theft."

BioCatch noted in a statement that it was able to save a major Latin American e-commerce retailer more than $200,000 a month against new account fraud, with nearly $2 million saved in the last Black Friday weekend alone.

"Together we're delivering a next-generation solution that does not add friction to the application process or elevate abandonment rates, enhancing fraud detection without harming the experience consumers have with companies," said Kim Sutherland, senior director, fraud and identity management, LexisNexis Risk Solutions. "By integrating BioCatch with the LexisNexis Risk Defense Platform, our customers receive an added layer of security during account opening functions in their digital channels so that they can place more of their focus on profitability and service delivery."