Digital Transformation Fighting Banking Fraud:
Money 2.0 Conference’s Experts Share Valuable Tips
Table of Contents
➔ Digital Transformation In Banking Sector
➔ Digitization Helping Banks To Avoid Fraud
Digital Transformation In The Banking Sector
This year the Money 2.0 Conference will speak about some of the most prevalent frauds in the banking sector. Additionally, the experts at the conference will elaborate on how digitization can be beneficial in fighting the nascent scam. The following slide helps you understand the necessity of digitization in the banking industry; check out!
● Banking has undergone a significant digital transition beyond just switching from a traditional to a digital environment.
● Banks and other financial organizations must use a comprehensive digital transformation plan to evaluate, connect, and serve their clients.
● The speakers of the Money 2.0 Conference’s Spring Edition highlighted how scammers could exploit security gaps unnoticed by banks when institutions expand to new digital channels, leading to a hefty compliance fine or data loss.
● Fortunately, the digitalization of financial services also ushers in cutting-edge technology solutions capable of overcoming current security issues and quickly spotting suspicious behavior, aiding banks in safeguarding digital data from fraud.
Digitization Helping Banks To Avoid Fraud
FinTech
experts who will also be the panelists at the Money 2.0 Conference shared five common banking spam that need to be dealt with digitization before they take a severe turn. For your convenience, those five types of fraud and how digital transformation can aid them are mentioned in the following slides. →
Screening For Money Laundering And Sanctions
● Financial experts state at the global Money 2.0 Conference platform the majority of penalties for financial frauds come from money laundering.
● Smart transaction segmentation can help banks identify efforts at money laundering quickly and stay out of trouble. Banks will need fewer resources to apprehend criminal actors by reducing the frequency of false positive and negative notifications.
● Because of this, banks should turn to artificial intelligence (AI), which has the potential to turn segmentation into an effective anti-money laundering (AML) procedure that produces noticeable gains with complete transparency for model evaluation and avoid scam, suggests Money 2.0 Conference’s panelists.
● Banks can utilize AI systems to monitor activity from a broad, global view and link illegal actors together to eliminate false positive alarms and
Internal Fraud
● Contrary to expectations, questionable employee costs are more common.
● According to a few anti-spam experts who will attend the Winter Edition of Money 2.0 Conference, the global average loss from a single occurrence of professional fraud is $150,000.
● By identifying suspicious-looking costs, solutions that use AI or machine learning algorithms may analyze large data sets and identify trends that aid in eradicating the issue of workplace fraud.
Social & Identity Fraud
● Financial consumers want cutting-edge solutions for preserving their identity and maintaining secure access to banking services as fraudsters use increasingly sophisticated digital techniques.
● Financial organizations may create sophisticated systems that can match DNA sequences and support identity identification in various ways, from digital and physical signatures to biometric data recognition, using software solutions that employ deep learning algorithms.
● FinTech stalwarts at the Money 2.0 Conference suggested that if institutions combine these anti-fraud tools they can provide staff and consumers with a balance between usability and security.
Mobile Theft
● Spam in the mobile sector is nothing new says financial and tech advisors at the Money 2.0 Conference networking session. As mobile banking services increase, so make mobile device-based fraud efforts.
● By combining outdated tactics with modern technology or banking services, fraudsters are developing brand-new fraud schemes.
● Mobile remote deposit capture is used in 72% of portable banking fraud cases (RDC). RDC is a technology that enables remote check scanning and transmits the picture of the check to a bank for deposit through a secure Internet connection.
● However, financial institutions are taking advantage of the widespread use of mobile devices by integrating them into their staff and customer identification systems.
Credit Card Fraud
● This kind of fraud is widespread, but emerging risk management technologies that use machine learning algorithms give hope for a solution as can be concluded from the global finance summit- the Money 2.0 Conference.
● Financial institutions formerly relied on linear algorithms to distinguish between legitimate and questionable transactions. Banks now use more sophisticated algorithms to distinguish between legitimate and possibly fraudulent transactions.
● Positive transactions are put in the fast lane, and consumers who seem more troublesome are subject to more complex algorithms.
Thank
Lakshay Mohanpuriya
This Presentation Is Prepared By
Manager, Money 2.0 Conference
You!