The figures from a recent study by the French Banking Federation are unequivocal: 92% of French people regularly check their bank’s website and more than 60% have already downloaded a banking app.
This digital migration has caused a shift in fraud and encroachment towards these online interactions, as hackers and scammers have also adapted to this changing context. In the face of these threats, security problems related to user protection are more present than ever.
As the implementation of good digital hygiene practices struggles to keep pace with the digitization of the industry, a large amount of sensitive personal data is at the mercy of hackers instigating increasingly sophisticated scams.
Therefore, banks and financial institutions must use all means at their disposal to protect their customers. In addition to raising awareness about good digital security practices, how can you streamline your processes to ensure the security of online banking interactions and fight fraud?
Reevaluate identity verification methods
The development of remote banking and the resurgence of data breaches make manual methods of identity verification obsolete. The latter, more risky in terms of security, can also have a negative impact on the user experience.
Accustomed to a now essentially digital context, today’s customers are less patient with the traditional systems that still exist at certain banks, such as physically presenting identity documents or sending scans.
Digital identity verification solutions offer a compelling alternative, the efficiency of which can also be multiplied by ten when combined with biometric identity verification tools. Thanks to artificial intelligence and machine learning, biometric verification is, for example, capable of comparing a selfie taken live with an image on an identity document.
The tools for detecting the “live character” of a client allow, by testing the behavior and reactivity of the latter, to identify certain spoofing techniques such as substitution by video, mask or static image. Whether used for an account opening, loan, or financing application, this type of digital identity verification helps streamline client-side processes while increasing your security.
Rethink the security of banking transactions
In a context of higher risks, the authentication of bank transactions must also be rethought. The obsolescence of certain techniques, such as relying on personal matters to secure transactions, is increasingly evident in a context where the exchange of personal and banking information on the Dark Web is commonplace.
Therefore, banks and financial institutions must change their authentication methods to make them more flexible. A new technology, adaptive authentication, is based on customer habits, such as how often and how much money they withdraw.
Adaptive authentication makes it possible to compare in real time whether the behavior of a user who performs an online financial transaction matches these habits and to identify any risk or drastic change in behavior. Once the risk is identified, the adaptive authentication method increases the level of security and requires the client to authenticate using multiple methods.
These are based in particular on active and passive biometrics and password strengthening. The flexibility and precision of this authentication method guarantee both a level of security adapted to each transaction according to its level of risk and an optimal user experience, which makes it an increasingly relevant option.
Better integrate artificial intelligence into risk analysis
If they want to harness the full potential of adaptive authentication, banks and financial institutions need to optimize their risk analysis strategies, an area in which Artificial Intelligence (AI) is playing an increasingly important role.
The use of AI is almost natural here: the sophistication of attacks, the emergence of new models such as attack-as-a-service, and the ever-closer collaboration between hackers are as many threats as these advanced technologies can now counter.
The integration of AI and machine learning is a great asset, allowing you to optimize the continuous analysis of a wide range of data beyond the simple detection of connection and transaction data.
Systems can thoroughly analyze clear signs of transaction compromise (phishing, malicious cookies and IP addresses, keyboard overlays, speed of execution) and derive critical patterns and information from them, fraud detection, and secure interactions.
Additionally, real-time monitoring allows analytics tools to generate risk scores and recommend the course of action live. The key here is to enable banks and financial institutions to take a proactive approach and anticipate the risks their customers are exposed to.
In a context characterized by the increasing complexity and sophistication of attacks, the security of transactions and banking data is a major concern for both banks and their customers.
While they mostly trust their bank, the French hope you will be aware of the slightest suspicious movement to ensure the highest level of protection possible.
The integration of technological innovations in terms of security is here a crucial asset that can accompany the slow generalization of good cyber hygiene practices, while allowing banks to optimize their processes and participate in a truly proactive approach, a letter that it is essential to play in order. to stay ahead of threats to the financial services industry and ensure customer trust.