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On-line transactions have been rising in recognition for years—however this pattern exploded through the peak of the COVID-19 pandemic, when folks modified the way in which they lived, communicated, shopped and carried out monetary transactions.
The desktop-to-mobile evolution in transactions and life insurance coverage cybercrime
Within the second half of 2021, 35.5 billion transactions have been processed digitally—and for the primary time, 75% of these have been cellular, with the overwhelming majority being initiated by an app. (Examine this to 2014, when it was reported that solely 25% of transactional site visitors was cellular.)[1]
From a cyber-attack perspective, an identical shift has taken place. Within the first half of 2018, the vast majority of assaults got here by way of the desktop. Within the second half of 2021, they shifted considerably to cellular channels on the expense of the desktop channel.1 The relentless shift to cellular continues, pushed by youthful generations embracing cellular know-how earlier and earlier. Moreover, rising market populations have been skipping desktop units altogether, shifting straight to cellular providers.
What these altering preferences imply
Customers globally have continued to drive demand for a customer-centric digital world. Consequently, firms have prioritized their digital buyer excellence methods to retain and purchase new clients, which is advantageous for respectable shoppers, however probably much more helpful for on-line fraudsters.
The creation of recent on-line accounts has exploded over the last two years, fueled by the pandemic and the worldwide shift to digital. Fraudsters are actually setting their sights on these new accounts. Consequently, the expansion in assaults on password reset performance has accelerated, as has the prevalence of Account Take Over (ATO) fraud, the place fraudsters achieve entry to shoppers’ accounts—and use that entry to withdraw funds, take out loans, or carry out different fraudulent acts.
Credential stuffing can drive ATO fraud
ATO fraud is commonly made potential by a tactic known as credential stuffing. Credential stuffing sometimes begins when a fraudster purchases username and password combos on the darkish internet. They then deploy bots to make use of these combos throughout a wide range of web site login pages—particularly these associated to monetary belongings. Utilizing bots on this approach automates the fraud makes an attempt and permits the fraudster to assault extra websites, utilizing extra credentials, in a brief time period.
Taking a more in-depth look: what all this implies for insurers
The pandemic, in tandem with technological enhancements, led to a 29% improve within the on-line buy of life insurance coverage from 2016-2022.[2] This has put life insurers within the crosshairs of cybercriminals greater than ever earlier than. And the statistics show this: 2021 was a banner yr for all times insurance coverage cybercrime. In accordance with Verify Level Analysis, cyberattacks on the insurance coverage panorama elevated 50%, in contrast with 2020.[3]
What life insurers can do to guard themselves
Though one of many major objectives of life insurers is to offer a top quality buyer expertise, it’s crucial to steadiness that have with the correct degree of fraud prevention.
Thankfully, know-how doesn’t simply assist the fraudsters. Insurers can faucet into technological advances and put efficient threat administration methods in place that may assist them decide whether or not:
- there are discrepancies on the applying
- all the info parts associated to the applying “match collectively”
- the proposed insured is an actual particular person
- a buyer signing in to a web based service portal is who they are saying they’re (as verified by step-up authentication)
- they’re paying coverage proceeds to an authenticated beneficiary
With cybercriminals making an attempt to ply their commerce from so many various angles, now, greater than ever, it is vital for insurers to deploy multilayer fraud prevention capabilities throughout all digital channels. This helps establish the anomalies related to the rising variety of assaults focusing on insurers, notably within the cellular app channel.
Id Entry Administration merchandise from firms akin to LexisNexis Danger Options might help insurers put fraud prevention methods in place that may:
- use electronic mail intelligence as a core threat identifier, to create a holistic view of who is de facto behind a transaction
- provide single-use passwords to offer a multifactor authentication resolution
- confirm client identities, spot potential fraud and identification theft, and robotically flag discrepancies in functions, service, and claims transactions
- present additional verification {that a} buyer is who he/she claims to be
A multi-layered method to cyber safety might help insurers seamlessly reply to digital identification threat—whereas staying centered on the shopper expertise.
Fraud and identification specialists will likely be sharing additional insights on the 2022 LexisNexis® Danger Options Buyer Advisory Assembly, being held on September 20th and 21st in Carlsbad, CA. Are you attending? If that’s the case, remember to take a look at the session titled Keep a Step Forward of Fraudsters – Understanding the Evolving Fraud Menace offered by Andre Mohammed, CIAM, CIST, CIMP, senior supervisor, Skilled Companies F&I – Authorities, Healthcare, Insurance coverage, LexisNexis Danger Options and Jena L Kennedy, FLMI, ACS, CLU, senior director, Life Insurance coverage Vertical, LexisNexis Danger Options.
[1] Supply: “Balancing Danger & Reward: The New Cellular Battlefield, The LexisNexis® Danger Options Cybercrime Report, July to December 2021” < https://threat.lexisnexis.com/international/en/insights-resources/analysis/cybercrime-report>
[2] Supply: 2022 Insurance coverage Barometer Examine, LL World and Life Occurs, 2022
[3] Supply: Verify Level Analysis: Cyber Assaults Elevated 50% 12 months over 12 months,” Verify Level Software program Applied sciences Ltd., 2022 <https://weblog.checkpoint.com/2022/01/10/check-point-research-cyber-attacks-increased-50-year-over-year/>
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