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December 12, 2022 • Issue 22:12:01

Fierce authentication for an

omnichannel theatscape

Fraud's escalating costs

The 2022 LexisNexis True Cost of Fraud Study: Financial Ser-
vices and Lending Report, published recently by LexisNexis
Risk Solutions, found fraud costs rose by 16.2 percent in the
United States and 19.6 percent in Canada year over year.
Findings show U.S. financial service providers pay an aver-
age of $4.23 and Canadian providers $3.78 for each dollar
lost to fraud.

Chris Schnieper, senior director of fraud and identity strat-
egy at LexisNexis Risk Solutions, emphasized the need for
multilayered security in today's complex commerce envi-
ronment.
"To minimize fraud, organizations can no longer rely on
manual processes or point solutions to reduce fraud, man-
ual reviews and costs," he said in a statement. "Firms using
By Dale S. Laszig a multi-layered solutions approach that integrates identity
verification and authentication within digital consumer
he fundamental promise of omnichannel com- experience can lower their cost and volume of successful
merce is to meet customers where they are—at
any touchpoint—whether mobile app, internet, fraud. This approach improves identity verification and
T cellular network or physical store. The ability to fraud detection effectiveness and lowers friction for trusted
transact across all channels has opened opportunities and consumers."
threats, expanding retail and hospitality playing fields and Evolving threatscape
creating a broader attack surface for fraudsters.
High on the list of emerging attack vectors LexisNexis
Opportunistic threat actors, like merchants and service Risk Solutions cited were buy now, pay later scams, mobile
providers, are present wherever consumers transact, mak- channel attacks and synthetic identity fraud. Survey re-
ing multifactor authentication (MFA) a critical need in to- spondents reported that advanced automated attacks that
day's omnichannel world, security experts have stated. bypass digital identity verification have made it difficult to

Developers imbue each software update and digital app
with advanced protections designed to block barbarians
at the gate, but strategies that exist in isolation are a mea- Contributed articles inside by:
ger defense against attackers known for shapeshifting and
mutating as they migrate from one channel to another.
This article continues The Green Sheet's examination of ad- Adam Atlas ..............................................................................................18
vances in multilayered security, including new approaches
to authentication, as part of our ongoing series on secure, Natasa Cvijanovic .................................................................................28
intelligent, agile and transparent commerce. Barnabàs Birmacher ............................................................................32

Continued on page 26