Fraud Management & Cybercrime , ID Fraud , Video
Financial Sector Embraces Identity-Centric Authentication
Experts: Banks Can No Longer Rely on Transaction-Based Approach Alone
As account opening fraud and mule accounts rise, financial institutions are embracing identity-centric authentication. Two fraud experts, Ken Nolen of Golden 1 Credit Union and Tim Chambers of Mission Omega, said that because of changes in customer interactions, banks can no longer rely on transaction-based authentication alone.
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Over the years, banks and other FIs have given customers unprecedented flexibility in handling financial transactions, but the sheer volume of transactions across different products makes it difficult for fraud investigators to spot anomalies, particularly with the rise in deepfakes.
"There are a lot of cross-channel transactions. It gets very difficult to identify a bad transaction when it's happening in three or four different siloed products," said Nolen, director of fraud services at Golden 1 Credit Union. "If we had a better identity, we could have a stronger opportunity to prevent that overall fraud versus trying to get the one transaction and then trying to link it to other ones that might be happening."
In this video interview with Information Security Media Group, the Chambers and Nolen also discuss:
- Why biometric authentication offers stronger security;
- Effective technologies for identity-centric practices;
- The challenges of integrating an identity-centric approach with existing systems.
Chambers, head of products and services at Mission Omega, is a 30-year fraud and risk management veteran with experience in most areas of the field, including fraud risk management, financial controls and governance, fraud and recovery operations, corporate security and investigations, operational risk, business continuity planning, regulatory compliance and remediation, and offshoring initiatives.
Nolen has a diverse management background including leading multiple operational business units. He has expertise in fraud and risk management, e-payments, strategic planning, digital payments and business relationship management.
