Mitek Systems MITK recently launched an innovative Digital Fraud Defender (DFD), a comprehensive, multi-layered solution designed to address the increasing instances of artificial intelligence (AI)-enabled fraud for organizations operating in high-risk digital environments.
The threat of AI-driven fraud has dramatically escalated over the past years. Generative AI can easily create convincing fake documents, videos and images. As a result, fraud tactics such as deepfakes, synthetic identities and account takeovers have become more prevalent and harder to detect. MITK highlighted a report from Deloitte’s Center for Financial Services that projects fraud losses due to generative AI to rise from $12.3 billion in 2023 to an alarming $40 billion by 2027. Deepfake-related fraud alone is expected to soar 700% by 2031.
Designed to combat multiple fraud vectors, DFD leverages Mitek’s proprietary liveness detection technology and advanced analytics to safeguard identity verification processes across industries. It is part of the Mitek Verified Identity Platform and takes a multi-layered approach to digital fraud prevention. By analyzing both content and channels for signs of manipulation, DFD offers comprehensive protection against key AI-driven fraud techniques.
Core Features of MITK’s Digital Fraud Defender
Injection attacks involve inserting manipulated or false content during the identity verification process. DFD effectively mitigates this threat by scrutinizing the transmitted content and the transmission channel for any deviations. The template attack detection feature helps identify counterfeit document templates combined with legitimate personal information by evaluating recurring patterns and frequencies and matching submissions with recognized fraud profiles.
Deepfake technology uses AI to generate highly realistic video and audio content, often to impersonate individuals. DFD employs passive liveness detection to examine video and audio submissions, identifying unique AI-generated artifacts and subtle manipulation indicators. As the threat landscape continues to evolve, solutions like DFD will play a pivotal role in safeguarding the future of identity verification across a broad spectrum of industries — finance, fintech, online gaming, or any industry reliant on remote identity verification.
The company continues to empower organizations to stay ahead against fraud, fostering customer trust and confidence in an increasingly digital world. In August 2024, MITK strengthened its collaboration with Alogent, a company known for its extensive solutions in check payment processing and digital banking services. By incorporating Mitek’s Check Fraud Defender into Alogent’s Unify platform, a web-based solution, this partnership aims to deliver an effective defense against the growing threat of check fraud.
MITK is a global technology company with expertise in digital identity and fraud prevention. In the last reported quarter, it generated revenues of $45 million compared with $43.1 million in the prior-year quarter, driven by healthy momentum across Software and hardware and Services and other segments. However, the top line missed the Zacks Consensus Estimate by 5.8%. Management remains concerned about the headwinds around its Identity product.
MITK’s Zacks Rank & Stock Price Performance
MITK currently carries a Zacks Rank #3 (Hold). Both MITK’s and the industry’s shares have declined 19.6% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Plexus Corp., Inc. PLXS and Workday Inc. WDAY. IDCC & PLXS presently sport a Zacks Rank #1 (Strong Buy), while WDAY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%
Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. In the last reported quarter, it delivered an earnings surprise of 7.36%.
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