Cyber risk solution of the year: LexisNexis Risk Solutions

Cyber crimes are constantly changing and getting more sophisticated in today’s digital landscape. Customers of financial institutions are often targeted by fraudsters using different methods and scams, such as investment and employment scams, remote access attacks and phone porting. Businesses struggle to verify customer identity and improve their digital offerings without adding unnecessary friction to their customers.

In the digital marketplace, a single loophole spotted by cyber criminals could cost firms millions in revenue and business reputation.

Thanh Tai Vo, director for market planning, fraud and identity for Asia-Pacific at LexisNexis Risk Solutions, says the convergence of compliance and fraud processes has also created additional complexities that businesses face. Companies realise the importance of implementing a holistic approach to financial crime compliance and fraud.

Meanwhile, customers are increasingly focused on the privacy and cyber security measures of the firms they interact with and may stop doing business with those with unsatisfactory cyber security practices.

“While businesses consider adding more security measures to keep the bad actors away, they are also aware of adding friction to customer experience and may risk losing legitimate customers and transactions. Therefore, companies are prioritising their digital customer experience strategies to increase customer confidence to retain and acquire new customers,” says Vo.

In April 2022, LexisNexis Risk Solutions acquired BehavioSec, a firm providing advanced behavioural biometrics technology. BehavioSec has the ability to convert complex mobile signals from touchscreen and sensors into rules and advanced mobile behavioural biometric-based authentication capabilities.

By integrating BehavioSec’s capabilities into LexisNexis ThreatMetrix, the enterprise solution for digital identity intelligence and authentication, customers will benefit from continuous authentication, advanced machine learning capabilities and additional behavioural data for enhanced authentication processes.

ThreatMetrix enables businesses to detect and block complex cyber risks in near-real time while minimising friction for trusted customers throughout every touchpoint in the customer journey.

Vo says the new cyber risk prevention tool will allow access to behavioural biometric solutions by larger organisations when combined with ThreatMetrix, while serving small-to-mid-sized organisations seeking standalone behavioural biometrics offerings.

“Our behavioural biometrics solution analyses how users interact with their devices to distinguish between bots and human interactions, and to identify suspicious behaviours on- and off-screen on the device,” he says.

The solution helps distinguish between human- and bot-account activity, identify quality customer profiles, reliably profile fraudsters, detect session anomalies and build confidence in returning, trusted customers.

Firms can also layer LexisNexis Behavioral Biometrics within the ThreatMetrix solution. Behavioral Biometrics, which LexisNexis added to its portfolio of fraud and identity solutions, delivers informed insights into the patterns and preferences behind trusted relationships to enable a system to recognise digital behavioural anomalies that signal cyber risk quickly. It provides an additional layer of defence to risk assessment and can detect and block automated attacks and suspicious transactions.

ThreatMetrix can also be combined with LexID Digital and the Digital Identity Network to provide a multi-layered analysis of the identity and transactions that are completely invisible to end-users.

LexID Digital is a dynamically matched, tokenised customer identifier that supports risk-based digital authentication by unifying online and offline identity attributes in near real-time to deliver a complete view of customer identity risk.

On the other hand, Digital Identity Network uses analytics technology and machine learning to aggregate tokenised intelligence related to high-risk behaviour, including logins, payments and new account creations from globally contributed transactions from a diverse cross-section of industries.

Vo says the combined solution provides a 360-degree view of risk profiles at any point that helps customers quickly answer critical questions across the customer lifecycle.

In the past year, LexisNexis Risk Solutions also acquired TruNarrative, which provides a cloud-based orchestration platform that detects and prevents financial crime and fraud. It has been renamed LexisNexis RiskNarrative.

By leveraging automation, artificial intelligence and machine learning, the RiskNarrative platform can simplify customer onboarding, monitor transactions and reduce risk and financial crime.

“The RiskNarrative platform can automate complex B2B and B2C decisions by bringing all checks and financial crime lifecycle management into a single, digital unified solution, enabling a fast, and friction-free onboarding experience,” says Vo.

The platform eliminates the complexity, difficulty and cost of multiple decision points by managing decisions and scoring data in one flow instead of a myriad of technology silos.

Insights can be shared across identity, fraud and compliance to make decisions with the most relevant and important information in full view. RiskNarrative is applicable for a range of industries, including banks, fintech, regtech, casinos, payment firms and retail firms.

In November 2020, LexisNexis Risk Solutions launched LexisNexis Emailage, a fraud prevention solution that assesses fraud risks by using email address metadata points such as domain details, email details and risk indicators. Using Emailage, companies can leverage advanced analytics, machine learning, artificial intelligence and actual transaction outcomes to get a clearer picture of consumer risk with an email risk score.