All posts by Managing Editor, Experian Software Solutions

The interesting thing about fraud is that it’s always changing. Fraudsters are getting smarter, and fraud threats are constantly evolving. Businesses need to be agile and prepared to quickly shift their fraud strategies to stay a step ahead of emerging fraud threats. Traditionally, it's been very difficult for businesses to keep up – every time they see a shift, new fraud signals must be employed, which means looking at new intelligence signals in order to counter that fraud and then moving through a process of procurement and qualification, and then implementation and integration, of fraud services in order to manage the change. With time of the essence, businesses can no longer wait months to react. They need to be able to react in real-time. Biggest threats for 2020 Covid-19 has accelerated online payment transactions, making way for massive cyber security and data fraud concerns among banks and retailers. The idea of doing more digital business, picking up customers digitally, providing a great digital experience is going to be more and more important as we move through the pandemic. Even businesses which traditionally see most of their customer traffic through bricks and mortar might start to see that shift. All of this means that there is more opportunity for fraudsters to be part of the process and to take advantage of that digital interaction. The risk of fraud is going to increase as more people go digital – In part because of sheer numbers, and in part because more of the people who are going online now maybe doing so for the first time. So companies and consumers alike are less prepared for that kind of interaction. Account opening is likely to drop because of Covid-19, but we should expect to see a sharp increase in account take over fraud. There are a lot of people who are being forced to go online now to transact. They may need to turn to ecommerce. They may need to look at online banking to move their banking online. But the point is, they may never have gone online to perform these tasks before. Many vendors have been rapidly rolling out new technology solutions to help banks and retailers manage this new online demand, which has potentially exacerbated digital fragmentation, privacy concerns, and governance expectations. The importance of continuous risking and self-service The speed at which fraudsters adapt to new technology and behavior has always been a problem, but now that we are seeing sudden and unpredictable change, reacting at speed with new fraud strategies has never been more important for businesses. Typically, businesses need to move through validation, contract and then integration in order to do this – making for a long and tedious (not to mention expensive) process. The new release of CrossCore will pre-qualify fraud and intelligence services so that they are pre-integrated meaning that businesses can choose how they want their transactions to be processed, which fraud and identity services they want to use, and they can do so through simple self-service. There is also a feedback loop where reports are generated on how much fraud was detected. Businesses can access their feedback loop almost in real-time and see if their fraud strategies are working or not, and then adjust things as they go. Customer experience when all of your customers are online The ability to passively and strongly identify a customer is a difficult balance to strike when the goal is not to inconvenience the user. And now that most consumers are running their lives online, they demand not only a secure experience, but a convenient one too. To achieve this, a lot of signals about that person are collected. These range from device characteristics and who it is registered with, to behavior on the device and whether these signals match up to the same person. In order to process this data, the signal streams that come in must be considered and then almost in real-time, fraud analytics allow a decision to be made on whether the interaction is with a genuine person or a fraudster. To be able to reduce friction while passively and strongly identifying a person, advanced analytics becomes integral. More about how our latest upgrades can help your business

In a report made available this month, Juniper Research anticipates that in 2024, remote purchases for digital and physical goods will exceed 285 billion transactions per annum; an 80% increase on the figure for 2019.  And, that values will increase by nearly 60% to over $9 trillion. It’s impossible to look at these numbers without considering the impact of the massive migration to digital channels that businesses and their customers made to stay engaged during the early response to Covid-19. Finding ways to support customers and their needs remotely has been met with a lot of creative solutions and we see new trends taking hold. For example, “buy online and pick up in-store” and “buy now and pay later” provides customers the access they need for goods and services now with a lot of conveniences. Convenience is a significant part of the customer experience but unfortunately can expose a business to a lot of fraud. According to David Britton, “Fraudsters will always be at the forefront of technology exploitation.” There is evidence of this not only in technological innovation but in the manipulation of human behavior, otherwise known as social engineering. According to Juniper, new technologies such as artificial intelligence will take social engineering to unseen levels of success, like the rise we're seeing in fictitious or synthetic identities. But while it might seem like an impossible problem to manage, businesses have solutions available to them to prevent fraud, including using AI against cybercriminals. In fact, Experian believes that there the layered approach to fraud detection and prevention can significantly protect businesses, and their customers, throughout the credit lifecycle, and withstand the changing face of fraud. Check out the report on key trends and capabilities required for securing digital payments and find out more about Experian's solution on the Juniper Research Leaderboard. Related content: Protect your family from potential fraud when kids are playing video games Getting to grips with the shifting fraud landscape

Over the past couple of months, every business, regardless of industry, has had to quickly find its bearings. This level of disruption is unprecedented; we may never see anything of this magnitude again in our lifetime. While urgent, the immediate needs created in the wake of the global pandemic shouldn’t be met with one-and-done solutions. It’s imperative that the solutions you offer not only enable your customers to manage the immediate crisis but also help you support them as they assimilate into the “new normal.” There’s therefore this added pressure for businesses to equip their teams with the necessary tools and knowledge to continue serving customers in a dynamic environment. It doesn’t take long to get left behind with new solutions, and new challenges, emerging on a regular basis. You have to keep up with the times so you can adapt your response to whatever is necessary and retain your value to your customers. How do you upskill your teams when traditional training is not an option? As Plato put it well before the Covid-19 pandemic turned our world upside down, a need or problem encourages creative efforts to overcome the challenge it presents. Recent research shows that companies that may have deferred their intended investment in training, are now resuming that commitment in order to meet new demands in this increasingly digital ecosystem: In an ILX Group survey, 51 percent of HR decision-makers said that ongoing digital learning has a direct effect on boosting employee morale, satisfaction, and longevity. ​ A study published in the Journal of Applied Psychology found that microlearning makes learning 17 percent more effective, and Software Advice reports that microlearning engages over 50 percent of participants. ​ A study conducted by Brandon Hall found that digital learning requires 40 to 60 percent less employee time than classroom training. ​ The Research Institute of America reports that learning retention rates improve from 8 to 10 percent for face-to-face training to 25 to 60 percent for digital learning. ​ IBM research found that for every dollar you invest in digital learning, the result is $30 in productivity, mostly because employees save a lot of time through online learning and are able to resume work and apply the new skills faster. ​ Taking advantage of technology to make knowledge accessible at the point of need As with the majority of our day-to-day activities, learning solutions now must be facilitated outside of a physical environment, such as the workplace or classroom. Having access to digital knowledge and training resources gives your teams enhanced flexibility to keep their skills up to date at their own pace, whether they are at home or in the office. Over the years, we’ve seen that offering learners training in multiple formats improves the overall success of the training, including enabling greater flexibility – offering different modalities is more likely to meet learner’s preferences - work clarity and job satisfaction. While your business may still be operating in a fog of uncertainty, ensuring access to the right tools and knowledge would give your team higher confidence in their ability to be of service, minimizing business disruption during this turbulent time.

The speed at which the world is feeling the impact of Covid-19 is unparalleled. Because of this customer affordability has shifted into the unknown and businesses are trying to react quickly to assess customer risk in a brand-new context, albeit a temporary one. We look at the five key areas businesses should be considering when it comes to customer affordability. 1. Looking to insights The last financial crisis taught us that the first line of defense for many organizations, large and small, is to move straight into proactive debt restructuring to reduce the volume of customers who would otherwise fall immediately into debt collection. This crisis is no different, but identifying those in hardship, restructuring debt at speed, and in line with restricted policies are where businesses should be focusing to successfully tackle this. 2. Keeping regulators front of mind As a result of the last downturn, many financial regulators are placing a much higher weight of responsibility on lenders to make fair and transparent lending decisions when it comes to affordability. Not just when it comes to new lending, but also how they act and behave within collections. These rules are not going to be relaxed, so it’s important that businesses continue to prove that they remain compliant. 3. Predicting what’s to come Anticipating arrears before they happen, and at speed, is fundamental to managing the restructure of debt effectively. Especially where traditional data sources provide less predictive value. For businesses without advanced and automated debt restructure or collections-based program to begin with, this is an opportunity to develop something that will carry them through this time of crisis and beyond. 4. Harnessing analytics and AI Thinking predictively means getting the right analytical capabilities or models in place, ideally harnessing Machine Learning and AI to get the fastest and best results. For larger organizations, this will mean having the agility to rapidly update and deploy existing models, and for the less mature, it will mean building this from the ground up (but quickly). Businesses will undoubtedly see their analytics teams overstretched during this period, so now is the time to reduce the manual load and invest in these capabilities. 5. Automation for demand control Making sure customers can deal with organizations digitally will be critical to maintaining customer experience. It’s just as important to ensure that channels are integrated and automated in the backend. Businesses are looking to omni-channel digital solutions to help feed new demand through the funnel without having the added complication of a restricted workforce. It has never been more important to automate. More on Decision Analytics

Shifting behaviors to comply with government orders to social distance and stay at home has pushed most consumers globally to purchase online the essential items and services that they would normally buy in person. This sudden, massive shift has led businesses to prioritize the safety of their employees, customers from exposure to Covid-19 and find new ways of engaging with one another. During social isolation, biometrics may become the closest form of contact we have to the physical world. In this Q&A, I will try to address how businesses around the world are using biometrics and how consumers feel about it. How are businesses adjusting to the coronavirus ‘new normal’? Businesses are playing a direct role in slowing the spread of Covid-19 by helping customers make better and more use of digital and remote channels. They’re adjusting operations, communications and servicing to support rapidly evolving consumer behaviors, preferences and overall experience. Amidst natural fear distress that most people are feeling today, businesses are focusing a lot of time on how best to support a smooth transition to digital for all customers – ranging from digital-natives to customers that have never used digital before and were otherwise satisfied offline prior to the pandemic. The elderly need more support than ever at this dire time, and all sorts of organizations are going the extra mile to engage with them and make them feel accompanied even when they might be physically separated from their regular support networks.  Financial services providers including HSBC, Barclays, Wells Fargo, Tangerine, and Santander are increasing their reliance on previously adopted voice recognition and other biometrics-based systems to speed up the ID verification process at their call centers. Similarly, other biometrics such as behavioral characteristics present in keystroke patterns and personal signatures are garnering more interest than ever before by retailers and healthcare providers to ensure secure, meaningful digital engagements with their customers. Ultimately, digital disruption is the new normal and Covid-19 has underscored the critical role that technology plays in driving value – a point that was often overshadowed by cost and unfortunately ignored until now. How is the global Covid-19 pandemic changing the way we transact? The shift to digital is also a retreat from physical and that includes physical points-of-sale, currency in the form of physical banknotes, and all other transaction mediums that contemplate physical contact as they can also potentially act as a means of spreading infection. Health authorities advise to use touchless technology where possible. This means that voice-based technology, mobile payments, digital signatures and remote account opening may become the recommended norm. Responding to this urge to go contactless, businesses of all sizes are adopting or expanding remote practices virtually overnight. Rolling contactless payment options to retail and services providers, strengthening online and mobile offerings or leaning on digital identity verification and online authentication are all part of the strategies we see being rolled out globally to fight the spread of coronavirus and to prepare for the aftermaths of the pandemic. On another note, the growing speed and sophistication of fraud related to Covid-19, as well as the rushed shift to remote working may also be adding to the general concern about transacting online, calling for heightened ways to ensure trustworthy digital experiences. What available technologies can be leveraged during and after the pandemic? Contactless credit and debit cards, mobile payments and electronic wallets, barcode and QR code readers are all known, established technologies that are gaining prominence and have the backing of health experts like the CDC. Chatbots that alleviate the heightened demand for 24/7 customer service, digital identity verification and authentication software for remote account opening and onboarding are also facilitating meaningful exchanges between consumers and organizations and helping flatten the curve of coronavirus contagions. Besides, voice and behavioral biometrics offer consumers another interface for information and services which goes beyond the confines of the screen, making it easier for certain populations to benefit from technology. What can businesses do to secure online engagements? With most transactions moving online to prevent contagion, pressure is up for businesses to create secure digital engagements. Regardless of which identity proposition is adopted by a company, now more than ever, the need to establish the verifiable claims that constitute a person’s identity is fundamental to doing business digitally. This happens at both the point of enrollment into an identity proposition and ongoing to ensure the identity hasn’t been tampered or compromised. Before the coronavirus outbreak gained the current magnitude, we launched the third annual edition of the Experian Global Identity & Fraud Report. Our research shows that creating a trusted, best-in-class customer experience is achievable with the right levels of security and reduced friction, which together provide easy access to accounts when and where the consumer wants it. Even in challenging times as the ones we are living, businesses can leverage data to build a more dynamic, less rigid approach to identity verification and customer recognition. The pandemic has boosted the growth of connected devices over the past moths, further accelerating the data generation process. Data needed to create more secure online exchanges can be gathered through the passive observation of consumers’ interactions such as their device configurations, behavioral biometrics, cross-business transactional history, shopping and purchasing habits, location data, etc. On top of requiring minimal active involvement from the customer, this approach offers sound reassurance for both consumers and organizations: spoofing a wide variety of identity attributes is indeed more difficult than stealing Personally Identifiable Information (PII), usernames or passwords, making it virtually impossible for fraudsters to impersonate legitimate users. Additionally, businesses improved ability to accurately identify consumer preferences and habits translates into better, more meaningful user experiences. Amidst the global health crisis, can biometrics become the catalyst for online trust? Many of the technologies and much of the data for achieving that coveted online trust may already be available to businesses today but may not be effectively harnessed. Take biometrics, for example. The majority of consumers (81%) view physical biometrics as the more secure form of identity verification, per our research. Conversely, as user IDs and passwords become more exposed to fraudsters, various organizations across industries are using biometrics to develop next-generation identification controls that combat fraud, make transactions more secure, and create trusted, enhanced customer experiences. Driving adoption is certainly key to effect change. The good news is that biometric authentication is already part of our daily lives. Facial recognition to unlock mobile devices and fingerprint scanners to facilitate purchases are only a couple of examples of how engrained biometrics already are in our daily lives. In fact, voice recognition was very promising even before the first coronavirus outbreak took place in Wuhan, China, with banks including HSBC, Barclays, Wells Fargo, Tangerine, and Santander using voice recognition to speed up the ID verification process at their call centers. During the pandemic, consumers are further warming up to voice-based security systems for its speed and ease of use, as well as for the sense of proximity and the comfort of the known they bring.  Voice biometrics are also being favored by government and law enforcement agencies because its role in identifying emergency callers, call center frauds, and crime investigations. What trends and technologies will remain in a post-coronavirus world? Contactless payments are probably staying for the foreseeable future. Layered customer authentication approaches have also been around for a while and don’t seem to be going anytime soon. We certainly support those, as not only they are proven, but also currently accessible and accepted by regulators. Biometrics in the form of face recognition, liveness detection, video meetings and other methods play varying roles in effectively enforcing digital identification strategies, being increasingly adopted around the world. A year ago, the Hong Kong Monetary Authority issued advice on “remote on-boarding of individual customers,” requesting document-based authentication to be combined with relevant technology including facial recognition and liveness detection. The German model is centered on video verification and has been often updated to make onboarding efficient and reliable; identification and verification is relies on live, two-way video with bank compliance staff. Numerous new identity propositions are emerging worldwide in response to consumers’ desire to be known and recognized at every interaction. Before the pandemic, over 90 percent of businesses feel these new identity propositions – including but not limited to reusable IDs, federated IDs, Tokenized IDs and decentralized IDs - play an important role for re-recognizing their customers. Pre-pandemic research shows that the desire for a better experience, and concerns around security, still shape the digital relationship between consumers and businesses. Two thirds of the consumers we surveyed earlier this year said that security is the most important factor when deciding to engage a business, followed closely by ease of access to their accounts. Likely that sentiment hasn’t changed since the pandemic started but increased: consumers expect businesses to continue to address their top priority – security – with renewed strength to secure their trust given the rapidly evolving environment.

Awareness is key for both businesses and their workforce when it comes to phishing fraud. But in a world where digital engagement has suddenly ramped up a notch (or ten), it is becoming increasingly difficult to differentiate between what's real and what's not. Mike Gross, Head of Global Identity and Fraud at Experian, recently spoke to Jill Malandrino at Nasdaq Trade Talks about the key things to watch out for when it comes to phishing scams. Here's a round-up of what was discussed: New opportunities for phishing The global pandemic has opened up new routes for phishing scams. Fraudsters are great marketeers in a crisis, and they thrive on people's curiosity. From fake charity organizations claiming to be investing in Covid-19 related treatment to new government support schemes - if it sounds too good to be true, it probably is. Remote working Individuals are now forced to work from home but still have a responsibility to protect customer data. New processes have exposed gaps that fraudsters can exploit as there are typically fewer controls on home networks. Businesses must ensure that the right security is in place for their employees. regardless of the business size. Habits have shifted, and so have the fraudsters The pandemic will change the way we operate forever - how businesses enable remote workers, how consumers interact with commerce and how kids learn today - this is impacting our lives on the social side as well as the work side. Fraud will follow suit. Reacting to the crisis with a layered defense Phishing has dramatically increased, but phishing itself doesn't cause losses. It's the gaps in the controls - organizations may not have proper layered controls in place to defend themselves against these more sophisticated, or multi-channel attacks - that's what leads to the increases in losses. No one had a chance to prepare for this crisis - everything is different now than it was a month ago, from customer service, online demand, a flood of certain types of applications - businesses are not set up for the scale of demand. Listen to the full interview

Unlike your typical recession caused by a steady decrease in demand, today’s downturn was induced by the immediate mass closure of non-essential businesses. The frenzied pace that government and regulatory bodies have responded to reduce the impact on consumers with payment forgiveness or deferment programs has put a tremendous amount of pressure on lenders. It’s difficult to quickly understand the changes in credit profile of a previous solvent customer and to mobilize their operations teams to service these at-risk customers. Most companies but especially banks have been very proactive in digitally communicating with customers. They’ve been contacting consumers through email and posting messages to your accounts online offering to help. The problem will be when people start to experience financial difficulty, how do you support those consumers especially the vulnerable? Generally, the number of consumers who manage their debt month to month with low to no savings is the norm, that coupled with overall credit lines and debt utilization rates being at an all-time high creates somewhat of a perfect storm. With consumers facing unemployment or furlough at record numbers, the volume of people seeking hardship applications from their lender will skyrocket. According to the International Labour Organization, an estimated 2.7 billion workers, representing 81% of the world’s workforce, has been impacted leaving millions of workers vulnerable to income loss and layoffs. This rapid increase in demand is and will continue to overload Call Center operations who are already under strain and operating at a lower capacity. And really, aren’t we all? Call centers are staffed with people like you and me – working remotely or socially distancing, all the while juggling the needs of their families and communities.  And if it’s a lender who hadn’t yet made the digital transformation leap, these lenders could be putting additional pressure on systems that are difficult to access with a remote workforce. Implementing new software and operating rhythms in times of crisis is not ideal. Yet businesses don’t have the luxury of time and will need to evaluate their options and implement now. Here are 3 considerations for taking those first steps: Prioritize on-demand or cloud-first solutions for faster implementation Look for “as-a-service” options delivered in days versus months to help more customers faster Find operational efficiencies that support your employees and customers when it’s needed most Experian is helping businesses manage their at-risk customers whether they’re already in arrears or showing signs of payment stress for the first time. By linking digital communications channels to a collections platform and integrated decisioning environment, we’re helping address the significant increase in hardship demand with end to end treatment automation as a service. From the point of application, consumers drive the self-service interaction allowing businesses to quickly receive, accept/decline and process applications. Augmented with analytical insights for affordability and various types of propensity, businesses will better understand the actual financial position of a customer and be able to create a tailored treatment approach that’s sustainable. Whether short-term forbearance or true hardship is required, this can help reach more customers and free up call center teams to focus on more complex cases. It’s unlikely the economy will return to its pre-Covid conditions as rapidly as its declining, but your customers will trust your business if you were there for them in their greatest time of need.  We can help you stay connected with your customer while supporting them in a meaningful way through this especially difficult period.

It’s possible the global Covid-19 pandemic will forever change the way we connect with others both personally and professionally. It seems the whole world went digital in a few weeks and it rapidly changed the way consumers and businesses engage with each other. Whether going digital was a part of your strategic plans or not, business leaders of all company sizes must rapidly adapt to this new normal and be prepared for the future post-pandemic. But where do you start? Lead with empathy and over-communicate Every life has been touched by the pandemic in some way or another which makes this rare event one of those truly shared experiences that happens globally. The way we conduct ourselves as leaders, employees, partners and customers requires empathy. Empathy for people that have been pushed to their limit juggling work and family. Empathy for programs and processes that are struggling to create or fulfill customer demand. And, empathy for business plans that were once designed for growth and now being redefined for resiliency. This duty of care for your employees and customers has the potential to create trusted, lifetime relationships with your brand. In fact, there is a tremendous opportunity for businesses to segment and use their data to tailor programs or communications strategies that will help customers access and manage their accounts easier at this difficult time. It might mean acknowledging customer service wait times are longer than usual and encouraging customer to go digital. Or, reminding customers to be diligent about their protecting their information and what to do if they are a victim of fraud.  Re-think your plans and pivot quickly We’re in the middle of this change now – alternative operating conditions (e.g. remote working, call centers closed), shifting consumer behaviors (e.g. going digital, unemployment), potential new regulations and temporary changes to credit reporting – and it means that speed of adaptation to the new normal is critical. Here are four major pivot points all business leaders should be considering: 1. Customer engagement: With many operational centers closed, customer servicing necessitates a holistic omni-channel approach to customer management. Building trust with customers facing a crisis also requires businesses to deliver financial solutions that are bespoke to their needs. 2. Risk management challenges: A big question on every risk officer’s mind is: How can I accurately project the impact on my customer’s behaviors and my portfolio results? Model performance review and re-calibration will be necessary and implementing advanced analytics (e.g. machine learning) may speed up its impact.   3. Operational re-alignment: The ability to intelligently reallocate resources between an ever-increasing list of priorities is keeping up most technology officers. Everything from managing a dispersed workforce to onboarding new customers or small businesses. Embracing a cloud-first strategy could mean the difference between business continuity and resilience. 4. Protecting against fraud: Fraudsters will seize on the opportunity to exploit any signs of weakness for financial gain. Knowing where the blind spots area and putting in place the right size solution for the problem are necessary to protect your customer’s from fraud. Want to learn more about what Experian is doing to help consumers and businesses during covid19?  Visit Experian’s Covid-19 Support page.

Birger Thorburn reviews the effectiveness, efficiency and evolution of the password. He examines current challenges facing business' current online authentication security measures.

Businesses can leverage technological advances in process optimisation, automation, data analysis and cognitive science to put customers first and truly understand and address their needs.

In this podcast episode of Insights in Action we talk to David Britton, VP of Global Identity & Fraud at Experian Decision Analytics, about how businesses worldwide are driving towards a more consumer-centric approach in both their operations and structure.

Shri Santhanam, Executive Vice President and General Manager of Global Analytics and AI, speaks to Forbes' Peter High on his Technovation podcast about Experian's Analytics and AI solutions. During times of crisis, innovation accelerates. What was once considered innovation, suddenly falls into the realms of the necessary, with businesses seeking quick, smart solutions to emerging challenges. Although this conversation took place before COVID19 reached the levels of a global pandemic, Santhanam discusses how advanced analytics and AI can be a game-changer for businesses. Key topics include how businesses need to bring together data, tech and analytics to formulate best in class products and services using AI in the form of examples such as Experian Boost. What it takes to run the global analytics and AI function at Experian. How high-profile consulting positions within previous businesses have placed Santhanam in an ideal position to problem-solve. And what he considers to be the two stand-out developments in the analytics and AI space. Listen to the podcast, or read the interview.