Banks and Investment Houses that generate 50% or more revenues through digital channels endure a higher cost and proportion of monthly fraud. For mid to large digital FIs, over 33% or 1/3 of their monthly transactions are fraudulent.
Ginicoe goes beyond Knowledge Based Assessment (KBA) questions and provides (i) patented identity verification; and (ii) authentication; and (iii) risk assessment by region with biometric facial recognition (BFR) for all your digital and non-digital transactions that includes every payment method.
THE COSTS OF FRAUD
Mid/Large Digital FIs - Earns $10 million in annual revenues; 50% or more > through their online and/or mobile channels.
For every $1 of fraud costs to Mid to large digital FIs, it cost $3.04 on average in lost revenue. Fraud costs as a percentage of mid to large digital revenue are 2.79%.
Mid/Large Non Digital FIs - Earns $10 million in annual revenues; less < than 50% through the online and/or mobile channels.
For every $1 of fraud costs to Mid to large non-digital FIs, it costs $2.35 on average in lost revenue. Fraud costs as a percentage of mid to large non-digital revenue are 2.04%.
1 – FI average revenue $ 57, 558, 739, 932
2 – FI fraud as % of annual revenue from our survey 2.39%
3 – Calculate the avg total cost of fraud (1 * 2) $ 313, 032, 747
4 – FI % of total losses 37%
5 – Calculate value of 3 * 4 $ 117, 105, 550
6 - Calculate total cost for every $1 of fraud 3 / 5 $2.67
Assumption of Calculations: the total cost for every $1 of fraud, calculated as total losses divided by the amount of fraudulent transactions for which the FI is held liable.
FIs larger than $50mn reported an average of 62% of fraud losses occurring based on identity fraud.
75% of Mid to Large digital FIs struggle with identity verification, which in turn can increase costs associated with excessive manual reviews and customer friction because of delayed transaction confirmation or blocked until reviewed.
If you are just starting out to protect yourself from fraud or if you are researching how you can plug up the holes in your existing security layers – Ginicoe can help.
Identity verification for online and mobile channels is a huge challenge for mid to large FIs. Identity fraud hits your portfolio and risk manager hard, who might employ a barbell or bullet strategy with perhaps no intermediate approach for investors. The hit takes the form of larger fees and lost interest that needs to be paid to investors on time. Costs are not limited to internal transfer costs which can include separate divisions / businesses or groups within the FI.
Most importantly, declining a legitimate transaction based on incorrect or absent identity verification in the online or mobile channel that solely focuses on address verification or device verification always results in lost revenues. This loss endures a multiplier effect when juxtaposed against the loss of a potentially positive lifetime value of a prospective customer who just suffered being alienating by a machine algorithm.
Our findings show that FIs that layer solutions by identity verification and transaction type experience fewer issues and cost of fraud.
They experience fewer false positives
· There are fewer manual reviews required.
· The cost of fraud is less.
· There is increased non-interest income.
· There is significant increase in shareholder value.
· There is significant increase of client, shareholder, and employee retention.
· There is reduced internal fraud and churn.
· There are reduced errors & bureaucracy due to our National sharing dBase of PII across groups, divisions, business units, and approved FIs.
Our Biometric Facial software suite works as a multi-layered gatekeeper with our patented advanced identity verification, identity authentication, and fraud transaction risk assessment.
Identity verification / authentication is important for “letting your customers in” with the least amount of friction and risk. Transaction –related fraud is about keeping the “bad guys out”. Ginicoe’s patented layered approach solves this for you.
Our patented solution will increase your customer trust and loyalty plus increase your revenue plus grow your market share all while reducing your fraud costs. This is why we are distinguishable.
BIOMETRIC FACIAL RECOGNITION (BFR) IN YOUR
DIGITAL and NON-DIGITAL CHANNEL
FIs DIGITAL CHANNEL – not limited to Federal or State Chartered Retail and commercial banks, mortgage banks, thrifts, savings and loans, mutual and cooperative banks, credit unions, stock brokerage firms, insurance companies, finance companies, building societies, industrial loan banks, and internet banks.
ELITE - mCommerce FIs (mobile phones) – These FIs depend upon mobile browsers, tablets, iPads, mobile apps, telephone orders and sometimes augmented reality, chatbots, or messenger apps for their products and services. mComerce FIs carry different levels of risk and challenges regarding identity verification and device verification. The very nature of mobility means that mobile-based payment transactions and devices are susceptible to Account Take Over (ATO) risk.
ATO fraud losses are projected to balloon to $2.8 billion in costs by 2020, before Ginicoe hit the market. For small to mid sized banks, more than half (56%) of losses on average occur because of identity – related fraud.
This figure grows to a whopping 62% among large banks, those earning greater than $50 million annually in revenues.
The breakdown shows 20% of that figure as synthetic identity fraud. This figure has been revised up from its earlier estimate of 12% of DDAs by 2020. Synthetic ID fraud losses are projected to balloon to $600 million by 2020, before Ginicoe hit the market.
FIs should purchase Ginicoe mCommerce software suite if you want real-time identity verification for (1) all your digital products and (2) all your mobile channels and (3) all your accepted payment methods – all at the same time in a really really quick way. If you are on this list, or your products are similar, you should contact us.
Alliant Credit Union Key Bank Online
Ally Mobile Banking Moven
Bank of America Mobile Banking Nationwide
Bank5 Connect Navy Credit Union
BB&T Pentagon Federal Credit Union
BBVA PNC Mobile App
BMO Harris Mobile Banking Regions Online
Capital One 360 Rocket Mortgage
Capital One Mobile Simple - Better Banking
Charles Schwab Simplify With Apps and Services
Chase Mobile SoFi Lending
Citi Mobile SunTrust Online Banking
Compass TD Bank Online
Connexus Credit Unition U.S. Bank
Consumers Credit Union Union Bank
Discover Bank Mobile Wells Fargo Mobile Banking
PLUS - eCommerce FIs – These FIs require really really quick real time transactions. As a result, these organizations have higher fraud costs compounded because of the digital product, the digital channel, and payment method. Making matters worse, these FIs also fall victim to botnet fraud.
These FIs rely on online / Internet browser transactions and mail order. These FIs are declining more transactions today because they do not have identity verification. This lowers their potential revenue levels from which the impact of fraud costs are measured. And, for eCommerce FIs, this just happens to occur exactly when there is a rise in online transactions since the past year and the trend of fraudsters is targeting this anonymous channel. In short it is a perfect storm.
If you are on this list, or your products are similar, you should contact us.
Ally Bank Incredible Bank
AloStar Bank of Commerce KeyBank Online
Bank of America Online Nationwide Bank
Bank of Internet USA Regions Online
Bank5 Connect Sallie Mae Bank
Barclays Bank Delaware SunTrust Online Bank
CIT Bank Synchrony Bank
Citibank Online TD Bank Online
These FIs attempted fixes often is approached with a one-size fits all that focuses separately on the product or the channel or the payment method, but rarely all.
FIs should purchase Ginicoe eCommerce software suite if they want real-time identity verification for (1) all your digital products except mobile and (2) this eCommerce channel and below (not mobile) and (3) all your accepted payment methods – all at the same time in a really really quick way.
STANDARD - Non-Digital in the Bank Branches
All Desktops, BYOD, and other end points
ATMs - skimming
INVESTMENT HOUSES DIGITAL CHANNEL – not limited to stock brokerage houses, mutual funds, pension funds, investment banks, trust companies, insurance companies, underwriters
ELITE - mCommerce investments
ATO fraud loss is of particular importance to investment houses and wealth management mid to large firms. Access to customer accounts in this channel can cause not only significant financial wealth damage, but fraudsters seek to steal the PII for use elsewhere and for other reasons – including PII on high profile and high net worth individuals. Reliance on address verification, CVV & AVV or cell phone telephone number is not enough.
If you are on this list, or your products are similar, you should contact us.
Charles Schwab SigFg
E*Trade Mobile Stash
Fidelity TD Ameritrade Mobile
M1 Finance WealthFront
Micro investment Yahoo
PLUS - eCommerce investments – ATO fraud loss is of particular importance to investment houses and wealth management mid to large firms. Access to customer accounts in this channel can cause not only significant financial wealth damage, but fraudsters seek to steal the PII for use elsewhere and for other reasons – including PII on high profile and high net worth individuals. Reliance on IP address verification, CVV & AVV or account password is not enough
Acorns Personal Capital
Ally Robo Advisor
Berkshire Hathaway Swell Investing
Betterment TD Ameritrade
ING Wealth Advisors TradingView
Merrill Lynch Voleo
Investment House Offices Non-Digital – Standard
International FIs and Investment Houses are encouraged to contact one of our Specialized Industry Associates to give you guidance on the best software suite, currency conversion solution, cross-border regulations, and similarly related topics that fit your particular need so we can begin to help you to reduce your fraud costs and give you a deep dive into your fraud analytics.
Payment methods include credit cards, debit cards, department store cards, oil and gas cards, travel and entertainment cards, bill payments to mobile carriers, mobile wallets,
Your customers will be required to enroll and register for FREE the account numbers of your accepted payment method. All personally identifiable information and account numbers are encrypted in storage, in transit, and in processing.
Ginicoe does not track checks, cheques, refunds, bounced checks, or cash for FIs.
1. See https://risk.lexisnexis.com/-/media/files/financial%20services/research/2018-true-cost-of-fraud-overall-rep%20pdf.pdf?la=en-us&hash=3EC7B0DDDFA1E8C8CC78E4B0A788437BE8F933F2
WHY GINICOE IS BETTER