Risk Analytics To Fight Fraud | CIO Applications Europe
Fighting financial fraud is an ongoing battle. A new study found that the overall value of card fraud losses in the United Kingdom amounted to EUR 706 million in 2019, with remote transactions responsible for 76 percent of those losses. Given the growth of eCommerce, this isn’t surprising, but since the pandemic, cybercriminals have become more active, as they take advantage
of people using digital platforms to carry out financial interactions.
The challenge for banks and FIs is how to reconcile regulatory requirements with the need to protect customers from the growing and rapidly evolving threat of fraud without sacrificing the overall customer experience.
When lockdowns were set up around the world, customers were forced to use mobile and digital forms of banking to comply with social distance mandates. Criminals have often looked to see where the money is, and digital forms of fraud have emerged as transactions have moved to these online realms.
At the same time, people have also seen fraudsters capitalize on fears and increase communications to draw customers into scams. Since the start of the pandemic, people have seen an abundance of
coronavirus-related phishing campaigns targeting consumers to steal confidential information, as well as many other campaigns designed to trick individuals into downloading malicious files such as malware. For example, as mobile banking use increased, the channel soon after Kaspersky’s research showed an increase in mobile banking Trojans. Phishing and malware attacks help to promote all forms of fraud, including takeover attacks.
With so much personal data and certificates already disclosed, users are still at risk of having their data used for fraudulent purposes without their permission. However, coupled with the rise in digital activity and cyber threats, it is up to banks to adopt a security system that is adept at detecting fraud in real-time before any harm is done.