The financial services industry has had a strong and growing online presence for years, yet social distancing is increasing the demand for digital transactions. Your customers are not alone in picking up the pace of digital adoption: fraudsters are doing the same thing. In fact, fraudulent activities such as identity theft and account takeover have been increasing significantly. Ensuring digital trust while preventing cybercrime will position your business to gain market share and improve customer lifetime value. Listen to this panel of European financial experts who discuss: - Why identity theft is the most significant form of fraud right now - What is fueling this costly and damaging trend - How to assess ‘trust’ during an interaction - How the fraud landscape is evolving - How a recession should alter your approach to fraud risk

1. Financial Services Panel
JULY 2020
Ensuring Digital Trust While Preventing Fraud

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Agenda
• Setting the Scene
– Shaun Smith & Sam Davison at TransUnion
• Panel Discussion
Moderator:
– John Marsden at TransUnion
Panellists:
– Johnathan Souter, Fraud Ops Analyst at Vanquis Bank
– Mark Stevens, Fraud Manager at Oakbrook Finance
– Stephen Paxton, Head of Credit at Zopa
– Marius Galdikas, CTO/CPO at ConnectPay
• Q&A

3. Confidential | Internal use only
Setting the Scene
Shaun Smith & Sam Davison, TransUnion

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What do we mean by Digital Trust?
Establishing associated risk
Achieving consumer confidence1
2

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Establish sound electronic and biometric verification methods to
reduce rates of impersonation, with electronic document-to-face
verification, and 2FA
How can we attain Digital Trust?
Establish your customer’s identity against a range of ID
and behavioural intelligence data, to build up a picture of
their online behaviour as well as more traditional data
Increase the use of automated decisioning to improve
operational efficiency, whilst balancing your customer journey

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Fraud Scams During
a Pandemic

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Responding to Shifts in
Consumer Behaviour
Spikes in Financial
Services Fraud
Changing Economic
Dynamics
Fraud & Scams are
increasing
9
11%increase in Financial Services
Risky transactions**
30%
increase in call volume to banking
contact centres***
70%
of consumers who responded* are
concerned about their ability to pay
their current bills and/or loans
400%increase in COVID-19 related fraud
reports increased in March with
losses nearing £1m****
*Poll of 3101 Americans 18 or older conducted by TransUnion the week of March 23, 2020 in which 1824 answered the relevant question
**TransUnion IDVision with iovation traffic analysis, March - April 2020,
***Aite Group Research, March 2020
**** Action Fraud March 2020
What have we seen so far…

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An even more difficult balancing act…
Provide friction-right experiences which build trust whilst mitigating new
threats and risk of bad actors and opportunistic fraudsters
Changes in consumer
behaviours and increased
need for digital service
provision
Evolving risk landscape
and threats from both
organised criminals and
opportunists

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The Landscape is Evolving
Fraud and UX ChallengesChanges In Consumer Behaviour
• Opportunistic/1st Party fraud
• Weak account protection
• Weak digital protection
• Abandonment
• Change of email address
• Previous associations of fraud
• Protecting consumers
Financial strains
ATO
More reliance on digital
Manual review
Recently created email address
Uncommon format
Phishing
Vulnerable customers
Shift in 3rd party fraud
Waiting time
Online
Email
Call
Centre
• Limited resources
• Stringent verification process
• UX expectations

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How we can help in today’s challenging times
CBI : On-going Customer
Management
Prevent 3rd Party Fraud
Ensure appropriate anti-impersonation
checks are implemented to help
prevent account takeover and other
forms of 3rd party fraud.
Switch from manual to
automated processes
Allow for an alternative digital solution to
replace a previously manual process.
Identify 1st Party Fraud
Conduct additional verification checks
with more robust layers of risk and
trust to help prevent the predicted
spike in fraud.
Protecting businesses
against fraud & risk
Ensure that steps are taken to consider
the additional risks during a transition
to scaled digital on-boarding.
Consultancy
& Analytics
Risk &
Trust Suite
Document
Verification
Device-based
Reputation
Fraud Alerts

13. Panel Discussion
Moderator:
• John Marsden, Head of Fraud & Authentication EMEA at TransUnion
Panellists:
• Johnathan Souter, Fraud Operations Analyst at Vanquis Bank
• Mark Stevens, Fraud Manager at Oakbrook Finance
• Stephen Paxton, Head of Credit at Zopa
• Marius Galdikas, CTO/CPO at ConnectPay

14. ID Theft has been one of the biggest
fraud type in recent years.
Is this trend continuing
and what is fueling it?

15. How do you gain ‘trust’ in an applicant?

16. How is fraud risk changing?
Will a recession change your
approach to fraud risk?

17. What advice would you give
to your peers watching this?

18. Q&A