Fraud Reduction Intelligence Platforms (FRIP)

Fraud has become a significant global issue, further intensified by the Covid-19 pandemic. Industries such as banking, finance, payment services, and retail are frequent targets of fraudsters, but increasingly, sectors such as insurance, gaming, telecommunications, healthcare, cryptocurrency exchanges, government assistance agencies, travel, hospitality, and real estate are also being attacked. Cybercriminals have diversified their methods and targets, leveraging various techniques to exploit vulnerabilities. Businesses, non-profit organizations, and government agencies face multiple prevalent fraud types, including Account Takeover (ATO) and Account Opening (AO) fraud. Techniques like phishing, smishing, vishing, and various other scams are used widely, often executed by bots. Cyberattacks on website operators include malicious code insertion, credential stuffing, competitive price checking bots, and Denial-of-Service (DoS) attacks, among others. Attackers also target cryptocurrency platforms through fake Initial Coin Offerings (ICOs), fake wallets, and address hijacking malware.

Several mitigation strategies are employed to counter these threats. Risk-based Multi-Factor Authentication (MFA) and Fraud Reduction Intelligence Platforms (FRIPs) are used to increase security, combining identity proofing, credential and device intelligence, user behavioral analysis, passive biometrics, and bot detection. Market-leading FRIP vendors include Akamai, BioCatch, Experian, F5, Forter, HID Global, IBM, LexisNexis Risk Solutions, Outseer, and Transmit Security. These vendors offer diverse solutions, some excelling in specific areas like device intelligence or user behavioral analysis, while others provide more comprehensive fraud protection services. The market for FRIP solutions continues to grow, with offerings mainly delivered as Software-as-a-Service (SaaS), priced according to transaction volumes.

When selecting a vendor, it is crucial to consider the specific needs of the customer, as vendor capabilities vary widely. Comprehensive analysis and a proof of concept phase are recommended for thorough evaluation.