Boston, October 27, 2011 – A new report from Aite Group examines the North American online-fraud-mitigation environment from the perspective of financial institutions. Based on August to October 2011 Aite Group interviews with 32 fraud-management and business-line executives at financial institutions, the report explores the root causes of fraud types that create the most pain for financial institutions in terms of financial and reputational risk. It examines the various fraud-mitigation strategies in use today, and details the vendors in use as well as the perceived effectiveness of their technologies. It also looks at the pace at which banks are deploying functionality to the mobile environment and the technologies used to protect the channel.
Cybercrime and malware cause the greatest amount of pain for North American financial institutions today, but a variety of tools are available to help them fight these threats. Most of the institutions interviewed feel that behavior analytics is very effective at combating online fraud. Complex device-printing is also viewed as highly effective at combating fraud while minimizing intrusiveness on the customer experience. The challenge is to deploy technologies that balance effective protection with usability; an overly cumbersome user experience may cause users to abandon the channel.
“Financial institutions’ fraud-prevention capabilities are increasingly becoming a competitive differentiator,” says Julie Conroy McNelley, senior analyst with Aite Group and author of this report. “Prospective commercial customers have begun to ask financial institutions about their fraud-prevention capabilities, and customers who perceive the approach to be inadequate often take their business elsewhere.”
This report is the second in a five-part series that examines online-fraud mitigation in financial services and charts FIs’ current and projected approach to online-fraud mitigation. It references solutions from 41st Parameter, Access Softek, ACI, ActivIdentity, Authentify, Comodo, Convergys, DigiCert, eLoyalty, Entrust, Equifax, Experian, FICO, Gemalto, Giesecke & Devrient, GlobalSign, GoDaddy, Guardian Analytics, IdenTrust, iovation, IronKey, Network Solutions, NICE Actimize, Oracle Bharosa, PinDrop, Prevx, Radware, RSA, SafeNet, SAS, Thales, ThreatMetrix, TransUnion, Tricipher Technology (VMware), Trusted Knight, Trusteer, Trustwave, VeriSign, and Victrio.
This 36-page Impact Report contains 33 figures and two tables. Clients of Aite Group’s Retail Banking or Wholesale Banking services can download the report by clicking on the icon to the right.