Gartner Report: A New Model for Preventing Cross-Channel Fraud

Customers appreciate it when companies offer a smooth omnichannel shopping experience — and so do financial fraudsters. That’s because most organizations’ fraud protection isn’t keeping up with their customer service offerings, and fraudsters are becoming increasingly sophisticated in exploiting the discrepancies between channels— both online and off.
In a new report titled, “Align Your Financial Fraud Detection Strategy With Gartner’s Capability Model,” Gartner recommends companies who want to provide a seamless cross-channel customer experience create a layered cross-channel fraud prevention strategy to go along with it. The report identifies three key challenges:

  • Many businesses are prioritizing seamless omnichannel customer experience, but few are investing in the fraud detection/prevention tools required to provide an equally broad view of customer behavior.
  • Organizations treat identity corroboration use cases as separate from transaction-focused fraud prevention and detection activities, undermining the enterprises’ larger fraud prevention initiatives.
  • Increasingly sophisticated attack methods can bypass legacy fraud and identity corroboration tools, but most organizations cannot afford to implement the best of every available solution for each possible attack method.

While many organizations are applying fraud detection methods to individual channels (e.g., website, call center) as though they are isolated silos, fraudsters are seamlessly moving between channels to exploit gaps. Organizations need to find a balance between tightening fraud prevention practices without adding unnecessary friction into the customer experience journey of legitimate customers.
To combat these challenges, Gartner offers a 7-layer “Fraud Detection Capability Model for Cross-Channel Fraud Prevention” to help organizations move beyond identifying threats through hindsight to foresee and prevent attacks before they occur. Those layers are:

  1. Static data-based identification
  2. Rule-based risk assessment
  3. Endpoint profiling
  4. Entity relationship graph
  5. Behavior analytics
  6. Web session protection
  7. Continuous risk assessment

Ekata is pleased to be included on the short list of representative vendors recommended for the Entity Relationship layer.
Ekata helps companies mitigate fraud and identify good transactions—through linkages of key data points including name, address, email, phone, and IP.
Contact us to learn how to better protect your organization from cross-channel fraud.

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