Digital transactions are driving more new business than ever before. However, this rapid digitization of business and consumer transactions has also facilitated an exponential rise in cybercrime, as fraudsters are capitalizing on gaps in companies’ fraud defenses. Insurers must ask themselves if their current capabilities will detect attempted logins using stolen credentials, botnets automating password guessing, or logins from compromised devices that put customer accounts at risk.

Insurance carriers house a wealth of their customers’ personal information. As data breaches become more prevalent and garner more attention, carriers have realized that it is important for them to safeguard their data. Passwords and two-factor authentication are no longer sufficient to thwart online attacks and account takeovers. At the same time, complex authentication protocols can frustrate customers. The challenge for insurers is ensuring that people accessing your system are not fraudsters without inconveniencing your trusted customers.

There is a solution. By implementing a layered approach, carriers can authenticate with a level of friction that matches the risk posed. This means that low-risk identities attempting to perform a low-risk transaction will have a low-friction/frictionless experience. On the other end of the spectrum, high-risk identities will experience more friction. This can occur by making them take and pass a quiz or by diverting them to an exception process.

LexisNexis® ThreatMetrix® harnesses near real-time shared intelligence from billions of transactions collected against tens of thousands of websites and hundreds of millions of mobile devices worldwide.

It stitches together a user’s true digital identity by analyzing connections between devices, locations, behaviors, detected threats and critical but pseudonymized personal information. By knowing who policyholders are, and how and when they transact, carriers can continually recognize returning customers and seamlessly integrate this validation process into existing business processes without adding unnecessary friction. Just as important, carriers can better detect suspicious behavior or compromised devices before accounts are infiltrated by cybercriminals.

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