Learn what behavioral analytics and biometrics are, and how they can be used in fraud detection.
Data breaches and cyber attacks increase every year, putting significant stress—and costs—on firms worldwide. According to Statista, the average cost of a data breach alone is around $4.35 million.
According to Sumsub’s internal statistics, over 70% of fraud happens beyond the onboarding stage. Therefore, it is essential to protect the whole user journey—and this is where behavioral analytics can help.
Let’s explore what behavioral analytics is and why it’s one of the most important strategies for business to detect and prevent financial crime.
Behavioral analytics examines patterns of behavior. When it comes to businesses, the way that customers interact creates a pattern—and ultimately a profile—of expected behavior. This can include the times of day people usually log into the app, the types of transactions they usually perform, devices they usually use, and even the ways they use their keyboard.
Behavioral analytics often involves automation and machine learning, tracing behavioral patterns that humans would miss and spotting anomalies both on an individual level and across an organization.
Behavioral analytics is widely used to identify and flag possible incidents of fraud, unusual transactions, or other criminal activity by examining patterns of behavior. Here’s how:
Behavioral analytics and behavioral biometrics are related concepts, but have distinct differences.
Unlike behavioral analytics, behavioral biometrics refers to the use of unique behavioral characteristics or traits of an individual for identification or authentication purposes. It involves capturing and analyzing specific patterns of human behavior, such as keystroke dynamics, mouse movement, touchscreen gestures, voice patterns, or even the way individuals walk. Behavioral biometric traits are used to create a unique user profile, and any future interactions or transactions can be compared against this profile for verification purposes.
While behavioral analytics focuses on detecting fraud by analyzing various behavioral indicators and identifying anomalies, behavioral biometrics uses specific behavioral traits as biometric identifiers for user identification or authentication purposes.
According to SNS Insider, the behavioral biometrics market alone was valued at USD 2.01 billion in 2022, and is projected to reach USD 11.64 billion by 2030.
Behavioral analytics is a scientific discipline that examines patterns of behavior.
Behavioral biometrics refers to the use of unique behavioral characteristics or traits of an individual for identification or authentication purposes.
Behavioral analysis uses patterns of behavior to identify and flag possible incidents of fraud, unusual transactions, or other criminal activity.