Updated: 7 days ago
Today’s world is all about showcasing yourself from behind the camera, where profiles are the people, and the stage is Zoom, Teams or Google Meet. Everyone tends to follow a pattern on how we interact in the virtual world, whether it is online shopping, social media, apps on our mobile or even the way we interact with our mobile devices. These actions define our online identity. Each interaction that a user has with their device or an app on their device is unique like a fingerprint. This data of interactions or fingerprints can be used to prevent digital frauds and help businesses improve customer satisfaction and loyalty.
What is Behavioral Analytics?
Behavioral Analytics is a deep dive into the science of data analytics that focuses on building a profile for every user by understanding their online or app interactions. It is enhanced by demographic and geographic data, to provide insight into the user’s behavior. The way a user navigates using a mouse or operates a touchscreen are actions that are discernible and can be used to differentiate different users.
How does Behavioral Analytics work?
Behavioral analytics systems operate on raw data like pressure applied by a user on their mobile touchscreen, the speed of keystrokes on a laptop or typing speed on mobile keypads. This data on the user behaviour, can be used to differentiate genuine users from fraudsters and bots. The path from raw data to decision making involves a series of steps - raw data is classified between normal behaviour and abnormal or fraudulent behaviour based on historic instances. For e.g. fraudsters are likely to hesitate while entering details which to the user are obvious, say the address or date of birth. The behaviour of a user when entering a new account number or mobile number differs from the behaviour at the time of data entry of known fields. This differentiation is key to identifying anomalous behaviour.
Behavioral Analytics profiles the user using the data collected and makes decisions by analyzing it to deliver the results with efficiency. The gathered data helps in recognizing the pattern that the user follows while making transactions online to define his behavior and to alert any foreign behavior.
Importance of Behavioral Analytics in risk scoring
The use of digital channels has escalated a great deal during the pandemic and has opened windows of opportunity for nefarious activities. Behavioral Analytics understands the online behavior of the user and makes digital portraits to reduce transactional risks by scoring every transaction. This provides an almost immediate effect in validating transactions in real time to determine errors and prevents losses.
Algo Engines’ Machine Learning based Fraud Management Solution scores each transaction using a myriad of behavioral analytics parameters like typing speed and pressure applied on touch screen. It helps identify complex fraud patterns that otherwise go unseen. When it comes to extracting real time insights from mountains of data, Algo Engines is at the forefront. We can help financial institutions leverage Behavioral Analytics to safeguard online transactions.