Customer fraud protection products for banks and credit unions

As Corporate Account Takeover swiftly rises (read Part 1 here), traditional protection strategies are not enough. Verifying all transactions between a financial institution and its business client through manual processes would be a daunting and practically impossible task, not to mention cost-prohibitive for most institutions. Today, multi-dimensional, preemptive strategies are critical to mitigating this growing threat.

However, one major question posed is where does the responsibility for online banking security lie?

Last year, 16.7 million consumers were victims of identity fraud - up eight percent from the previous year and a new record high, according to Javelin Strategy & Research’s 2018 Identity Fraud Study. This translates to more than $16.8 billion stolen, with much of that from financial institutions.

Moreover, Account Takeover fraud grew significantly, tripling over the past year and reaching a four-year high. Javelin reported that total losses from Account Takeover reached $5.1 billion – a 120 percent increase from 2016. Deemed one of the most challenging fraud types for consumers, victims pay, on average, $290 and spend 16 hours to resolve it.

But consumers are not the only victims. Corporate Account Takeover is also on the rise.