New fraud protection solutions

Julie ConroyResearch Director

Aite Group

Luis RojasHead of Products

Guardian Analytics

Present:New Requirements for Fraud Prevention

©2016 Aite Group LLC.Page 2Source: Informationisbeautiful.net

©2016 Aite Group LLC.Page 3

The favored attack vectors

Hacking: Compromising a vulnerability to infiltrate a

company’s network

Malware: Malicious software intended to

damage computers and/or capture data

All of the above: Cross-channel and cross-product

Social engineering: Manipulating people so

they surrender confidential information

Insider threat: A person who has infiltrated a

company to steal sensitive data


Innovation rapidly expanding the attack surface


Mobile malware still dwarfed by online, but growing rapidly

3.2 6.2 19 61178

338200

350578

953

1,572

2,594

2013 2014 e2015 e2016 e2017 e2018

Number of Unique Malware Strains, 2013 to e2018

Mobile malware Computer malware

Source: McAfee, Aite Group

(Millions)


Business email compromise

Average loss per victim: $100,000

Average loss per victim: $100,000

$1 billion in losses through end of 2015

$1 billion in losses through end of 2015


While online has long been a target, the mobile channel will increase in attractiveness…

8,335 8,955

9,417

9,687 10,153 10,771 11,395

4,560 6,000

7,911

11,443 15,278

19,238

23,068

2010 2011 2012 2013 e2014 e2015 e2016

Annual Digital Banking Logins in the United States, 2010 to e2016 (In millions)

Annual online logins Annual mobile logins

Source: Aite Group, July 2014


…and the contact center is already there

Up 1 - 10%28%

Up 11 - 24.9%33%

Up 25% or more17%

Flat or don't know17%

Down5%

Q. Are contact center losses trending up, down or are they flat? (N = 18)

Source: Aite Group interviews with 25 executives from 18 large U.S. FIs, August 2015 to February 2016.


Clear connection between the contact center and ATO

Minor issue28%

Major issue55%

Critical issue17%

Q. Please rate the account takeover fraud trend as you are experiencing it in the call centers.

(N=18)

Source: Aite Group interviews with 25 executives from 18 large U.S. FIs, August 2015 to February 2016.


The U.S. migration to EMV will exacerbate the problem

£23£34

£23

£53 £60£47

£35 £40 £41

£61

£101

£19

£20

£23

£37 £28

£33

£19£25 £28

£20

£24

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Growth in UK ATO Post-EMV (GBP Millions)

Card ATO

Onlinebanking

Source: Aite Group


Build your security with the assumption

that the bad guys will breach the perimeter.



No silver bullet…


Analytics: Improving detection, reducing friction

Source: Aite Group interviews with 19 large North American FIs, February to May 2015.

Pilot/ Implementation

10%

Using 1 solution42%

Using 2 solutions37%

No immediate plans11%

Respondents' Use of Behavioral Analytics (N=19)


Getting ahead of the bad guys

Anomaly detection

Transparent to end user

Cross-product and

channel analytics


Impact: Sharply rising account takeover

$392 $420

$644

$760$844

$903$966

$1,091

2013 2014 2015 e2016 e2017 e2018 e2019 e2020

U.S. Account Takeover Losses, 2013 to e2020 (US$ Millions)

Source: Aite Group


Aite Group: Partner, Advisor, Catalyst

Aite Group (pronounced eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry.

Julie Conroy Research Director [email protected] +1.617.398.5045

mailto:[email protected]

Introducing Omni-Channel Fraud Prevention Luis Rojas, Head of ProductsMay 5, 2016

19© 2016 Guardian Analytics, Inc. – Confidential & Proprietary

Fast Growing, Proudly Protecting

360 Degree Insights and Real-Time Control


Unified risk scoring across payments and channels using advanced behavioral analytics and machine learning

Consolidated view of customer activities, risk and fraud

Real-time integration of customer banking activities, account data, and 3rd party fraud alerts

Channels

Payments

ATM

Contact Center

POS

Branch

Online

Mobile

Bill Pay

Debit

WireACH

P2P

Omni-Channel Visual Analytics

Omni-Channel Risk Engine

Enterprise APIIntegrated Risk

Database


Omni-Channel Visual Analytics360-degree view of customers and fraud

Integrated databanking platforms, core systems, security and fraud alerts, enterprise case management data


Enterprise APIIntegrated Risk

Database

© 2016 Guardian Analytics, Inc. – Confidential & Proprietary 21

Omni-Channel Visual Analytics Demonstration


Integrated Risk Database



Enterprise API

Integrated Risk Database

Customer/Account data

Casemanagement

Layered security alerts

Enhance risk scoring

Call center and branch activity

Centralized view and increased context

Intelligence data


Enterprise APIOmni-Channel Visual Analytics


Enterprise API Integrated Risk

Database

Omni-Channel Mapping

• Channel• Context• Activities

• Hold/release• Stepped up authentication• OOB • Dynamic session control

Risk Scores

Intervention


Fast Growing, Proudly Protecting


For more information: www.GuardianAnalyt ics.com/Omni-Channel.htmlView the recorded webinar on our YouTube channel.


http://www.GuardianAnalytics.com/Omni-Channel.html

https://youtu.be/qkByT2GBI08

New fraud protection solutions

Data & Analytics