Securing Emerging Channels: Virtual Assistants, the Internet of Things, and Beyond

Connected cars, light bulbs, voice assistants, chatbots, and more! The “Internet of things” (IoT) is expanding swiftly with new types of devices, many of them carrying potential to support banking and payment services. These emerging channels offer financial institutions and retailers the opportunity to engage with their customers in new ways. At the same time, fraudsters have proven themselves adept at rapidly finding the most effective ways to misuse any new banking or payment technology that reaches the market. This forces financial institutions to systematically evaluate the risks posed by new banking services while balancing the most effective fraud-fighting strategies with the expectations of their customers.

Key questions discussed in this report:

• What are the primary fraud risks posed by emerging channels and devices, like virtual assistant, chatbots, and voice banking?
• How prevalent are different types of consumer Internet of things devices in the US?
• How can financial institutions address fraud risks throughout the lifecycle of IoT devices?
• How can financial institutions balance customer expectations with effective fraud controls in emerging channels?