Incognia Leads to Major Reduction in Fraud for Challenger Bank

Incognia has published a new case study that highlights the effectiveness of its location-based authentication solution for the financial sector. The case study concerns will bank, a challenger bank that needed to improve its security posture after suffering a wave of account takeover attacks that led to considerable financial losses for the bank and its paying customers.

In those attacks, cybercriminals were using legitimate (but stolen) credentials to log into other accounts and execute fraudulent transactions. Those credentials were primarily obtained through social engineering attacks on social media, and underscored the need for an additional authentication factor to address the problem.

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–Download the Case Study For the Full Story of How will bank Nearly Eliminated Fraud–

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That’s where Incognia’s mobile authentication technology came into play. The company’s platform uses device location data to build a unique profile for each customer, noting that most people have predictable movement patterns. The vast majority (89 percent) of real users tend to log in from home, or from a few frequently visited locations, such as the office or a favorite café. As a result, Incognia can analyze a device’s location to assign a risk score to each session, and ask for step up authentication if a login request comes from an unfamiliar place.

With that in mind, will bank integrated the Incognia service into its own mobile app, and it has already witnessed a significant reduction in fraud in the first few months of deployment. More than 72 million logins (for 1.3 million users) were analyzed by Incognia between January and May of 2021, and there were zero account takeovers reported for those who had enabled location tracking (will bank customers need to opt into the feature, and 83 percent have already chosen to do so). The false positive rate, meanwhile, was only of 0.0013 percent.

Those figures corresponded to a 90 percent decrease in overall fraud losses and an 80 percent decrease in account takeover attacks. It also led to a 480 percent Return on Investment, and enabled a smoother login experience for genuine will bank customers.

“The  security  of  our  customer’s  accounts  and  data  is  a  priority  at  will  bank,” said will bank Fraud Prevention Head Iremar Brayner. “With the Incognia solution, we guarantee the delivery of a high-quality financial product, free of fees, and extremely safe against scams and fraud for our customers.”

Incognia has repeatedly encouraged the financial industry to move away from password credentials. The company released a free developer version of its fraud prevention platform in May, after its SDK was listed on the Auth0 marketplace in March.