Harnessing Advanced Analytics To Deal With Banking Fraud & Scams A Review
Banking Fraud As financial institutions have access to private information and funds of thousands of customers, banks have always been major targets for scammers, spammers, and fraudsters. However, with the rise of cashless payments and digital transactions, the problem of scams has increased tremendously.
A report prepared by the Association of Certified Fraud Examiners reveals that organizations lose up to 5% of their annual revenue simply to fraudulent activities and scams. As fraudsters are using increasingly sophisticated tools to break into banking systems and spam their customers, banks must embrace advanced analytics tools to complement their existing manual scam, spam, and fraud prevention strategies.
Why Advanced Analytics? Thankfully, many major banks have adopted advanced analytics tools to spot suspicious activities and help them lower the risk of fraud. As reviewed by fraud analysts, this automates a huge chunk of the entire fraud detection process and also ensures that the bank’s reputation is not compromised because of such invasions. At the same time, such tools go a long way in helping financial institutions to keep the data and financial assets of its customers safe and secure. In the upcoming slides, we will quickly walk you through the benefits of adopting advanced analytics tools for spam and scam prevention in banking.
01 Detects Anomalies Given that advanced analytics tools can be deployed to track the financial activities of customers, it can immediately alert banks if it detects unusually high and fake transactions or withdrawals from a different location. The bank can then get into action and contact the customer to know if the transaction has been initiated by them.
02 Analyze Risk Profiles Assessing credit worthiness of customers is a long drawn process which may take days. However, with the help of advanced analytics, banks can check credit history as well as for past scammy/fraudulent behavior within minutes. Fake documents will be immediately identified as well. In the long run, such tools can help drive better and faster lending
03 Faster Response Not only are advanced analytics tools less likely to make errors when reviewing fraudulent, fake requests, and scammy financial activities, but these can also be used to trigger a few actions that can help to prevent account takeovers by hackers.
Thanks! Prepared by: Yash Dogra, Manager, Money 2.0 Conference https://www.money2conf.com/ Please keep this slide for attribution
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