Customer-Centric Strategies to Achieve True Day Zero Risk

In our previous post, we delved into the critical importance of identity verification and fraud prevention in today’s digital age, highlighting the concept of Day Zero Risk. We hope you made it to our live webinar, “Day Zero Risk and the Beginning of the Customer-Centric Journey,” where experts from Mastercard and DataVisor discussed advanced strategies for mitigating fraud from the very beginning, or day zero, of the customer journey. If not, you can watch on-demand at any time.

The webinar delved into an array of important subjects, spotlighting the shortcomings of traditional verification methods and showcasing the game-changing impact of AI and machine learning in ousting fraud at the outset of the customer journey. Inspired by these insights, this post will dive into innovative, customer-centric strategies that financial institutions (FIs) can adopt to attain true Day Zero Risk, harnessing the power of comprehensive customer data and continuous real-time monitoring.

Securing the customer journey with comprehensive customer data

In fraud prevention, data is key. The more information you can collect from signals you’ve identified as relevant to your customers’ journey the better. Many traditional verification methods, though data-focused they may be, often fall short and have become outdated in today’s fast-evolving fraud landscape.

To truly mitigate risk, FIs need a comprehensive view of customer data. This involves first utilizing detailed data collected via the four critical data elements of Personally Identifiable Information (PII): email, mobile, device ID, and behavioral data. Each element plays a crucial role in constructing a complete and accurate customer profile, which is essential for preventing fraud at the onboarding stage.

Behavioral data proves there is an actual person taking action on the other side of an account opening and onboarding, not a bot. It also helps prove the person is who they say they are by matching their biometrics to saved information. Email is a standard verification method, but it is still important in getting real-time confirmation of activity through multi-factor authentication. Device ID gives the new customer a unique identifier that FIs can use to track their behavior as they onboard and start using products and services. Finally, mobile information, specifically device intelligence, can reveal the presence of emulators, bots, and other malicious tools that reveal a fraudster trying to onboard.

By leveraging comprehensive customer data, a financial institution can detect discrepancies and anomalies that may indicate synthetic identities. If an email address or mobile number has been associated with fraudulent activities in the past, or if a device ID shows unusual patterns, these signals can trigger additional verification steps. This holistic approach ensures that potential threats are identified and mitigated before they can cause harm.

Beyond onboarding: continuous customer monitoring to maintain zero risk

Fraud prevention doesn’t stop at onboarding. Continuous monitoring of customers is essential to safeguard against evolving threats throughout the customer lifecycle. By harnessing a wealth of data and signals, organizations can achieve unparalleled accuracy in detecting and responding to fraudulent activities.

This continuous monitoring takes place in real time, giving FIs up-to-the-moment insight into what customers are doing and helps reveal coordinated fraud activities. For example, if a normally low-risk customer suddenly exhibits high-risk behavior, such as multiple large transactions from a new device or location, these red flags can prompt immediate action. In our recent webinar, the panel presented a case study highlighting how a leading bank implemented continuous monitoring, resulting in a significant reduction in fraud incidents and improved customer trust.

Leveraging industry insights and best practices

During the webinar, industry leaders from DataVisor and Mastercard shared key insights and innovative approaches to enhancing identity verification and fraud prevention strategies. After you’ve watched their discussion, take these best practices with you to guide your journey toward day zero risk:

• Adopt AI and ML Technologies – AI and machine learning can analyze vast datasets to identify patterns and anomalies that human investigators might miss. These technologies enhance the accuracy and efficiency of fraud detection.
• Implement Data Orchestration Systems – These systems provide a unified, holistic view of the customer journey by centralizing data in one location, enabling better detection of fraud patterns and more effective response strategies.
• Leverage Behavioral Intelligence – Understanding customer behavior helps in distinguishing between legitimate and fraudulent activities, improving the overall security of the verification process.

Dennis Maicon, DataVisor’s VP of Banking and Payments, emphasized these in the webinar, saying “The key to achieving true Day Zero Risk lies in adopting a multi-layered approach that combines advanced technologies with a deep understanding of customer behavior.”

To achieve true Day Zero Risk, financial institutions must adopt customer-centric strategies that go beyond standard ID verification. Leveraging comprehensive customer data, continuous monitoring, and advanced technologies like AI and machine learning are forward-looking, future-proof strategies and technologies your FI should be utilizing. These measures not only enhance security but also create a smoother and more trustworthy customer experience.