Arvato Financial Solutions announced an agreement with NuData Security, an award-winning international expert in behavioural passive biometrics, to join forces. The partnership will enable clients to focus on good customer experience, balancing complex fraud mitigation strategies in compliance with local data protection regulation.

In order to provide a one-stop fraud prevention suite, Arvato Financial Solutions has chosen best-of-breed partners combining cutting edge technologies with their local market know-how and analytics expertise to combat increasingly complex fraud phenomena along the entire customer journey. As recent winners of theMerchant Risk Council METAwards and CNP Best Antifraud Solution NuData Security has proven their innovative approach towards fraud prevention. The joint solution will integrate behavioural analytics and behavioural biometrics with a common platform that will offer joint clients in truly understanding their users so they can provide a frictionless and enhanced experience for legitimate customers while protecting against abuse.

Arvato Financial Solutions is increasingly supporting technologies that radically innovate all kinds of fraud detection. Arvato clients who want to prevent cybercrime phenomena, now have access to an internationally-proven solution, which accurately verifies a users’ online identity by authenticating the user based on their natural and subtle interactions online – behaviour that cannot be mimicked or replicated by a third party. These capabilities help to maximize detection, reduce false positives and optimize user identification.

Lately merchants experienced increased fraud losses, an increase in the volume of successful fraud attempts, a rise in fraud cost per dollar losses and a bigger bite of fraud costs as a percent of annual revenues. On average, 648 fraud attempts were recorded by companies each month, among them 206 were successful for the scammers. This means that 1.47 percent of their turnover was lost due to fraud.

Over the holiday season in 2015 NuData found a 167% increase in high-risk transactions from the previous year, and new account fraud has increased to 60% of all new accounts in 2016 from 39% in 2015.

The variety and arising speed of fraud phenomena force digital businesses to find effective solutions for these challenges. Technologies such as real-time behavioural analysis and passive biometrics, machine learning and aggregated data intelligence can help clients in financial institutions/banking, e-commerce, telecommunications, gaming, internet, media, entertainment reduce fraud and improve customer experience.

Source: Arvato Press Release