Aite Group, a market research firm specializing in the financial services sector, has released a new report on digital fraud mitigation. In it, research director Julie Conroy finds that there is a growing place for behavioral analytics systems such as the one offered by NuData Security.
The research was conducted this past spring and involved interviews with 26 fraud specialists working with 19 financial institutions in North America. It found that while 79 percent of the banks involved said they plan to increase spending on anti-fraud measures for online and mobile banking, less and less of that investment will be going to knowledge-based authentication systems; over half of the banks said their use of such systems is expected to decline over the next couple of years. Instead, many of the banks are looking to more technologically sophisticated solutions, with six of the banks suggesting they’ll adopt biometric authentication, and various behavioral analytics systems seeing the potential for strong growth in the sector.
In a statement, Conroy suggested that while behavioral analytics is a form of biometrics, “it is not subject to the same onerous laws as traditional biometrics, therefore Aite Group categorizes them as a form of behavioral analytics.” She proceeded to single out NuData as a leading vendor.
And rightly so. The company’s NuDetect platform has been honed over the course of its development toidentify the early warning signs of fraud very effectively, leading to acclaim from others as well, as in the case of Gartner, which named it a Cool Vendor in Cloud Security, and in the case of NuData’s being named a Gold Winner at the 2015 Global Excellence Awards. The company is clearing a path in the nascent industry, with others sure to follow.