The Financial Brand Insights - Spring 2023

Fight Fraud by Connecting Your Financial Channels

Figure 1

By Patti Reid VP, Product Strategy & Delivery, Card Services at Fiserv, Inc.

Tagged fraud attempts by transaction type

24% Increase

Digital wallets, chip cards and cardless transactions. In-person, online, in-app and mobile purchases. Phone calls, branch visits and emails. Signature, personal identification number (PIN) and biometric authentication. Tap, swipe, dip and wave. Whew! Consumer payments capabilities continue to expand in their variety of interactions, methods, transaction types and purchasing channels. But as almost everything about payments rapidly evolves, so too do the efforts of swindlers to deceive, cheat and steal. Total debit and credit card fraud attempts tracked by Fiserv on behalf of its risk office clients increased approximately 200% from January 2018 to December 2022 — with nearly 9 mil- lion fraud attempts observed during 2022, account- ing for almost $800 million in attempted client theft. And the attacks have accelerated as more con- sumers have increased their use of online channels. According to tracking performed for Fiserv clients, e-commerce accounted for over 75% of all card fraud attempts in 2022 (Figure 1) — a 24% increase over the 2018 calendar year — accounting for 83% of the total fraud dollars at risk. The financial services industry continues to take prudent steps to keep card transactions secure — most recently with “card present” transactions using EMV chip cards. Yet the industry’s efforts are inevitably lagging behind a plethora of new scams, swindles, cons and tricks being perpetrated by aggressive fraudsters. More must be done. Fraud. It’s only one word, but it generates a thousand negative reactions. By focusing on connecting their consumer financial channels and touchpoints, financial institutions can create a holistic view of their customers, maintain transaction volumes and keep consumers safe.

80

75.69%

72.31% 74.34%

70

61.19% 58.51%

60

50

40

30

20

10

0

2018

2019

2020

2021

2022

Keyed

Fallback

eCommerce

Swiped

EMV

© February 2023 SOURCE: Fiserv Risk Office Analytics, 2023

Connect Consumer Interactions and Transactions Financial institutions can help reduce consumer anxiety and friction quite efficiently by creating a 360° view of their consumers. By understanding customer behavior more fully, financial institutions can deliver faster, more intelligent fraud detection. By analyzing data that includes a holistic look at all of a customer’s interactions and transactions with the financial institution, banks can improve their consumer authentication decisions. Here’s how it works. A bank connects its consumer financial channels and touchpoints — including debit and credit card transactions, online and mobile banking activity, ATM interactions, P2P transactions, rewards programs, contact center activity, bill pay activity, ACH transactions, tokenization and wires activity. In doing so, it can create an in-depth profile of an individual’s financial services behaviors and patterns (Figure 2). This comprehensive, cross-channel knowledge, combined with industry data, will empower the bank to more accurately identify unusual or suspicious activities that might indicate fraud. This linked approach enables financial institutions to heighten their vigilance and maintain a positive consumer experience across the payments spectrum.

24 THE FINANCIAL BRAND INSIGHTS SPRING 2023

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THE FINANCIAL BRAND INSIGHTS SPRING 2023

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