Behavioral Biometrics Platform Gets Update to Stop New Account Fraud

Biometrics News - Behavioral Biometrics Platform Gets Update to Stop New Account Fraud

Buguroo has upgraded its flagship behavioral biometrics platform to help financial institutions spot (and stop) New Account Fraud. The enhanced bugFraud can be used in conjunction with traditional anti-fraud measures like ID checks and physical biometrics, or as a standalone security solution.

New Account Fraud refers to fraud that is carried out with bank accounts that are less than 30 days old, which are often created with synthetic identities and stolen personal information. According to buguroo, such fraud has a disproportionate impact on financial institutions, accounting for 48 percent of fraud value despite occurring in only 0.3 percent of fraudulent transactions.

To stop it, the new bugFraud leverages behavioral biometrics to assess the threat level whenever someone is opening a new account. First, the platform will evaluate the network and the device being used to open the account, and flag the transaction if it notices any unusual malware, software, or bots that have previously been associated with fraudulent activity.

It will also watch for suspicious behavior during the enrollment process, and compare it to the general pattern that occurs when legitimate users open new accounts. Fraudsters often move more quickly than first-time customers because they have opened multiple accounts and are familiar with the process, and because they are copy-pasting stolen personal information.

“Some banks turn a blind eye to [New Account Fraud], because they’re worried that anti-fraud checks will slow down the onboarding process to the point when customers will give up,” said buguroo Founder and CEO Pablo de la Riva. “Our new capabilities identify fraudsters in real-time, helping banks avoid these losses without impacting the experience of their customers.”

The bugFraud update arrives shortly after buguroo warned users about a banking Trojan in Brazil and a trio of malicious apps that are currently available via Google Play. The company has previously explained why behavioral analytics is effective against first and second party fraud, and is now extending that utility to New Account Fraud with the upgrades to its platform.