protecting against digital fraud in financial services ... immediate attention. for one top 10 bank

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  • Insight Guide

    Protecting Against Digital Fraud in Financial Services How to React, Adapt and Transform Your Business During COVID-19

  • 2

    The COVID-19 pandemic has created unique and unprecedented challenges for the financial services industry, which is seeing a dramatic rise in digital transactions along with increased targeting of consumers by fraudsters. This has led to rises in payment fraud, account takeover, and identity fraud, the latter of which has increased 23% since the pandemic..1

    Given the current state of the market, what other fraud trends are impacting the financial services industry across different stages of the pandemic? How can businesses work to quickly combat emerging threats like rising call center fraud, and pivot to meet customer needs by securely offering a fully digital customer experience? Most importantly, what are the immediate steps you can take in order to protect customer interactions?


    1 TransUnion traffic analysis, March 11-April 28, 2020

    Identity & Synthetic Fraud

    Account Takeover

    Payment Fraud

    23% increase in identity fraud since the pandemic1

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    In the midst of COVID-19, everything from customer volumes, to engagement channels, to fraud threats have been changing quickly and are continuing to evolve. We’re seeing this in a number of ways:

    Accelerated move to digital channels Almost overnight, the financial services industry saw customers rapidly switching from in-person to digital channels. Excluding any operational challenges that result from this quick of an adjustment, the industry is also experiencing an uptick in related fraud, and TransUnion has seen an 11% increase in risky transactions for financial services organizations since the pandemic was declared.1

    Increasing call center volumes Increases in call center traffic as a result of COVID-19 have been seen across the entire financial services industry.

    Evolving shifts, trends and fraud challenges resulting from COVID-19

    1 TransUnion traffic analysis, March 11-April 28, 2020 2 Invoca, Persado

    The Aite Group estimates that banks have seen spikes in call center volume in the 40% range, hold times have sharply increased and are likely driving abandonment rates over 10% (well past the target rates of 2-5%),2 and with attack methods like social engineering being used to perpetuate account takeover across the customer lifecycle, call center agents are dealing with more fraud than usual.

    Rise in identity fraud After the pandemic was declared, identity theft was the #1 reported fraud type for financial services organizations.1 While data breaches have been growing in size and scope long before COVID-19, the COVID-19 outbreak has placed unprecedented demands on the industry to offer services via digital channels, and fraudsters are taking advantage of unprepared organizations as they find themselves scrambling to respond.

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    A reliable basis of trust has never been more important

    React to immediate fraud risks and identity verification challenges within digital channels.

    Adapt your operations to streamline consumer interactions and build trust in faceless channels.

    Transform into an organization with comprehensive plans to adjust to fraud and identity proofing challenges that will be part of a new normal

    Financial services organizations are actively looking for ways to mitigate risk without hurting the customer experience during this trying time, which is why we recommend using a multi-phased approach to verify consumer identities and establish trust, authenticate consumers and prevent fraud. In the wake of COVID-19, businesses must look at how they can address immediate challenges while planning to adjust to a changing environment for the long term.

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    Solutions and Benefits for Every Phase

    Solution(s) Overview Primary Benefit

    R ea

    c t

    Identity Verification

    Verifies consumer-provided information using comprehensive data sources and predictive cross-industry analytics to uncover suspicious data discrepancies.

    Verifies consumer identities to quickly and securely onboard new accounts, while adhering to regulations.

    Email & Phone Verification

    Identifies risky characteristics or anomalous behaviors in consumer- provided email addresses and phone numbers.

    Validates account changes, helping prevent account takeover (ATO) and adding assurance.

    One-Time Password (OTP) and Knowledge-Based Authentication (KBA)

    Quickly authenticate new and existing customers online, via the call center, and even in-branch.

    Prevents social engineering attacks and ATO, and reduces risk of fraud in call centers.

    A d

    a p


    Document Verification

    Captures and validates data from consumer-provided government identification documents, with the help of market-leading facial recognition.

    Takes manual processes online, reducing lengthy reviews and expediting new account setup.

    Tr a

    n s

    fo r

    m Synthetic Fraud Model Uncovers suspicious patterns within account openings and authorizations.

    Detects fabricated and synthetic identities before would-be fraudsters become customers.

    Device-Based Reputation Assesses the risky behavior, attributes and reputation of any device connecting to your website or app.

    Enables you to prevent digital fraud across the customer journey, in real time.

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    Challenge After the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in the U.S., banks nationwide were suddenly flooded with applications that required immediate attention. For one top 10 bank in the U.S., approximately 1,000 of the applications processed daily needed to be manually reviewed, either due to no matches or Know Your Customer (KYC) flags.

    Solution In order to expedite the process, the bank implemented Document Verification — a solution that digitally captures and authenticates consumer-provided government IDs — to expedite the ID verification process.

    Result Launched within a week, the bank was able to streamline its digital ID verification process and drastically reduce manual reviews, freeing up the bandwidth needed to address other immediate needs. Most importantly, they were able to increase their approval rate by 20%.

    Company Spotlight Top 10 Bank Uses Document Verification to Expedite CARES Act Requirements

  • Portland Office 555 SW Oak St Suite 300

    Portland, OR 97204 USA

    PH +1 (503) 224-6010


    United Kingdom PH +44 (0) 800 058 8731


    About TransUnion Global Fraud & Identity Solutions TransUnion is a global information and insights company that makes trust possible in the

    modern economy. We do this by providing a comprehensive picture of each person so they can

    be reliably and safely represented in the marketplace. As a result, businesses and consumers

    can transact with confidence and achieve great things. We call this Information for Good®.

    TransUnion Global Fraud & Identity Solutions unite both consumer and device identities

    to detect threats across markets while ensuring friction-right user experiences. The

    solutions, all part of the IDVision with iovation suite, fuse traditional data science with

    machine learning to provide businesses unique insights about consumer transactions,

    safeguarding tens of millions of transactions each day.


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