Traditional wisdom about security said that limitations on access is a good thing. Metaphorically, a house with one door and one window is easier to secure than a house with multiple entry points.
That would seem to pose a problem for today’s banks, which give consumers more ways to access their accounts. Convenience has seemed to trump security.
But, in fact, traditional wisdom may need to change in a non-traditional world. The multiplicity of devices and access channels means that customer profiles can be created across a variety of different vectors, helping to corroborate genuine customer access and activity and distinguish it from aberrant or suspicious behavior.
In other words, increased accessibility can mean increased security, if you use intelligent corralling and interpretation of data. An ATM withdrawal by a European cardholder with a chip-and-PIN card using a magnetic stripe only terminal may look risky, but if that same consumer has already accessed Internet banking from their smart phone or laptop from an IP address in the same vicinity then, risk of spoofing aside, this should offer a higher level of confidence.
This is enterprise fraud management: where safety truly is in numbers. Profiling at a customer or relationship level — rather than simply at transactional or product or device level — is the "new black" in customer-centric protection.
For evidence on the renewed importance of enterprise fraud management, check out the latest intelligence from industry analysts. CEB TowerGroup estimates a 50% growth in enterprise fraud systems by 2016. In its new report The Forrester Wave™: Enterprise Fraud Management, Q1 2013, Forrester estimates that “globally, merchants are paying between $200 billion and $250 billion in fraud losses annually, while banks and financial services organizations are losing between $12 billion and $15 billion annually.” Both the CEB TowerGroup and Forrester reports also put FICO in the top segment of enterprise fraud providers. These reports reflect the importance of using technology to fight fraud across the channels.