Like in all other industries, the insurance industry also faces the risk of fraud. Fraudulent claims are affecting the industry leading to losses stated Bahaa Abdul Hadi. The insurance industry has been using different methods to tackle frauds. One of the effective methods is biometrics. We look at how biometric analytics can help the insurance industry tackle fraud.

Biometrics and Fraud detection in the insurance industry

There are two types of biometrics – physical and behavioral. Physical biometrics uses physical traits like fingerprints, iris scans, facial scans, etc. Behavioural biometrics analyzes the behavior of users and uses their behavior to identify them. Behavioral biometrics makes use of machine learning to study behavior of people and identify a pattern. This pattern can be used to find out if the user is really who they claim to be.

Some of the behaviors that can be studied include:

  • Mouse activity like speed of mouse movement, patterns, and use of scrolling.
  • Keystroke including typing speed, use of shortcuts and advanced keys.
  • Device usage including use of gyroscope, scrolling, and orientation used.
  • Touchscreen use that includes the pressure used for touch and area covered.

A combination of these behavioral characteristics can be used to identify a user. Behavioral biometrics can be used by authenticating individuals. The insurance sector is using behavioral biometrics to root out fraud. Let’s see how it is done.

  • Synthetic identity fraud is where fraudsters use stolen data to create a synthetic or fake identity. Behavioral biometrics help in detecting unusual behavior while filling forms. It can be used to prevent fraud.
  • The first stage of the insurance process is the application. Fraudsters can use bots to fill forms in hundreds. The bot forms can overwhelm the system and can also be used to get policies in a wrong manner. Behavioral biometrics can help detect whether a human is filling the form or a bot. Here again, it can help in preventing fraud.
  • Whenever a customer logins and start using the insurance portal or app, their behavior can be studied. It can be used to find out if there is any suspicious behavior that points to the identity of the user being compromised.
  • Fraudsters can file fraudulent claims to try and cheat the insurance firm. Here again, biometrics can help detect such behavior and prevent losses for the firm.

Conclusion

Biometrics is a boon when it comes to ensuring secure authentication. The insurance industry is using behavioral biometrics to detect and prevent fraud. Biometrics is helping the insurance sector save money by rooting out fraud effectively. Thank you for your interest in Bahaa Abdul Hadi blogs. For more information, please visit www.bahaaabdulhadi.com.