Fraud Management Archives - Infosecurity Outlook

SpyCloud Launched Session Identity Protection

Posted on March 10, 2022 by admin

SpyCloud launched session identity protection, a technology dedicated to preventing trusted user fraud, which is one of the most difficult types of fraud to identify. This new solution surfaces credentials and session tokens were taken from users by common infostealers, is driven by SpyCloud’s malware intelligence, the leader in account takeover and fraud protection.

Trusted user fraud is the most challenging fraud to detect as it allows violators to replicate existing users who have been hacked by ransomware. Fraudsters can avoid the points of authentication where they are most likely to be detected by accessing active sessions through ‘remember me’ options.

SpyCloud’s Senior Product Manager, Jacob Wagh said, “There are virtually no indicators that differentiate a legitimate user from a criminal using an anti-detect browser and stolen session cookie data. They look nearly identical, down to their geofenced IP, browser version, OS version, and even screen resolution. In some cases, analysis of SpyCloud’s database of the recaptured breach and botnet data shows stolen session cookie data indicating a risk of fraud before the credentials connected to an associated account have even been compromised.”

Session Identity Protection is the only way to go beyond conventional fraud and browser checks to identify customers whose session or trusted device cookies have been hacked or captured by malware. It allows internet companies, financial services corporations, and retailers to reduce the danger of hijacked sessions by providing a more comprehensive view of at-risk and exposed customers.

Multifactor authentication (MFA), device ID checks, and newer browser fingerprinting anti-fraud measures are frequently bypassed by threat actors using stolen credentials. Fraudsters have learned how to get around these measures in recent years by using “anti-detect” browsers that may imitate a legitimate user’s trusted device and browser fingerprint. These tools are driven by a never-ending stream of malware infections that capture credentials, session cookies, and other browser data, all of which are available for purchase on the dark web.

Clearlake Capital invests in RSA

Posted on August 13, 2021 by admin

The Clearlake Capital Group made strategic equity investment in RSA Security LLC. RSA is a worldwide provider of mission critical cyber security solutions, governance risk and compliance management tools to businesses. Clearlake joins Symphony Technology Group as an equal partner, having acquired the company from Dell Technologies in 2020 alongside Ontario Teachers’ Pension Plan Board. The Ontario Teachers’ Pension Plan continues to be a large minority shareholder. The transaction’s terms were not released.

The strategic equity investment in RSA Security LLC by Clearlake Capital Group, L. P. has been completed. RSA is a worldwide provider of mission critical cyber security solutions, governance risk

RSA offers enterprise risk, security and fraud teams to manage digital risk in a comprehensive manner, including threat detection and response, integrated risk management, identity and access management and omnichannel fraud prevention.

“Clearlake’s investment in RSA comes at an opportune time and will support the Company as it looks to accelerate innovation in the key cybersecurity and risk management markets in which we operate. We are thrilled to partner with Clearlake and look forward to leveraging their proprietary O.P.S.® framework to continue to deliver best-in-class software to a large and growing global customer base,” said Rohit Ghai, Chief Executive Officer of RSA.

“RSA is a pioneer in the cybersecurity and risk management markets and its mission critical software solutions are more relevant than ever in today’s marketplace. We believe the robust market growth and strong secular tailwinds underpinning RSA’s leadership position as well as STG’s successful efforts to establish RSA as a standalone company have positioned the Company well for continuing to serve its blue-chip customer base. We look forward to partnering with STG in transforming the business and investing to accelerate both organic and inorganic growth,” said Behdad Eghbali, Co-Founder and Managing Partner, and Prashant Mehrotra, Partner, of Clearlake.

William Chisholm, Managing Partner of STG said, “Clearlake’s distinguished track record of investing in leading software companies, as well as their deep understanding of the growing importance of RSA’s risk and cybersecurity solutions in the digital age, made them a perfect partner for us in helping RSA during its next phase of growth.”

SentiLink Identity Verification startup raised $70 million in Series B funding

Posted on August 9, 2021 by admin

SentiLink announced that they have raised $70 million in Series B funding, led by David Sacks of Craft. The funds are already being used to develop new products, beginning with the launch of “KYC Insights” product at the end of September, as well as to research new fraud issues such as credit washing, J1/F1 fraud, and the laundering of stolen public benefits funds. And as new issues arise with their partners, they will address them as well.

Identity verification is especially bad in the United States. The SSN is the United States’ national identifier, which is supposed to be unique and secret but is neither. Citizens’ identification cards are rarely used and are easy to fabricate. Organizations spend a lot of time and money on this problem, but fraud persists, and honest people are subjected to unnecessary friction and false positives.

SentiLink believes that determining whether someone is who they claim to be can and should be simple and effective. Organizations should be able to detect and prevent fraud in such a way that consumers are unaware. It should be simple, inexpensive, and functional.

SentiLink announced that they’ve raised $70M in Series B to make this vision a reality, led by David Sacks at Craft. The company is already using these funds to develop new products, starting with the launch of our “KYC Insights” product at the end of September, and to research new fraud issues, like credit washing, J1/F1 fraud, and the laundering of stolen public benefits funds. And as they discover new issues with our partners, they will tackle those as well.

Nethone raises $6.7M Series A Funding to combat online fraud

Posted on July 16, 2021 by admin

Nethone’s passive behavioural biometrics enables online businesses to stop over 95.3 percent of account takeovers (ATO), which have been spreading at an alarming rate around the world. Aside from ATO, the Polish fraud fighter has been prospering in its payment and financial application use cases, consistently demonstrating a fraud detection precision of over 10 p.p. greater than traditional methods.

Along with Innovation Nest, Plug and Play Ventures, Firlej Kastory, and numerous business angel investors, Atmos Ventures and ARIA are headlining Nethone’s most recent fundraising round. Nethone will use the Series A funding to accelerate its go-to-market activities and strengthen its exclusive Know Your User (KYUTM) profile technology, giving global leaders the tools, they need to fight fraudsters.

Given the pandemic-induced surge in demand for direct-to-customer online commerce (both web and mobile) and the associated next-generation financial services, COVID-19 elevated the importance of cybersecurity. Nethone has been able to more than double its customer base in the last year, as well as increase the volume of onboarded clients across the eCommerce, digital products and services, and financial services verticals.

Hubert Rachwalski von Rejchwald – Nethone’s CEO said, “The last year has seen an unprecedented spike in fraudsters’ activities. COVID-19 has fueled a ‘professionalization of fraud’ trend that Nethone has been observing systematically escalate since the company’s inception in 2016. “Barriers to entry for fraudster-wannabes have been steadily decreasing. More and more sophisticated SaaS-based tools became available for anyone with some financial resources at their disposal. Today, these are advanced technical solutions built by well-organized, highly experienced groups of rogue IT experts. Wrapped in a user-friendly interface and excellent customer support they allow for complex anonymisation and automation functionalities as well spoofing of historically trusted digital identities that most of the incumbent fraud detection solutions stand no chance of spotting.”

“The forward-looking answer to anyone who wishes to effectively transact online is to deeply understand every single user, as they browse the website or use a mobile app. Our KYU profiling technology gives access to first-hand real-time insights about what is really happening with the device, how this device interacts with the servers of the platform and, last but not least, what is the raw behavior – keystrokes, mouse movements, gyro or accelerometer readings, touches on mobile). These are currently over 5000 attributes that we are extracting passively in the background about every single user thanks to years of targeted research and engineering, Importantly our goal is never to affect the customer journey by staying invisible in the background nor invade end-user privacy thanks to the low-level nature of the attributes we collect” – adds Aleksander Kijek, Nethone’s CPO.

Apart from extending its go-to-market operations, the business intends to use the funds to accelerate roadmap advancement, with a focus on features that will optimise perceived value among the company’s target categories.

“With the post-COVID critical significance of fraud prevention and the fierce competition in creating the frictionless user experience, Nethone has a novel approach to profiling technology fueled by machine learning. And since Atmos is focusing on developing deep technologies in ML-driven commercial solutions, Nethone Profiler combined with the explainability of the machine learning models was an obvious choice for us. We are elated to join the team to arm online merchants with deep tech tools against fraudsters,” said Hadi Solh, Managing Partner at Atmos.

Dariusz Lewandowski, CEO of ARIA said, “The accelerated growth of eCommerce in the pandemic era – up 30% in value by 2020, naturally increases the scale of fraud in the digital space. Nethone solves the problem of online payment and identity fraud, with annual losses worth around $50 billion. Their technology provides maximum protection without affecting the end-user experience. I see huge potential for the application of this technology, including other companies in our portfolio – wherever payments are involved. I am impressed with Nethone’s highly motivated team, as well as the organizational maturity for an early-stage company. Nethone has proven successful in onboarding clients ranging from traditional banks to fast-growing start-ups across the globe.”

Enterprise Fraud Management – An Overview

Posted on May 19, 2021 by admin

Enterprise Fraud Management (EFM) is a centralized framework for risk management, providing comprehensive risk analysis and application of controls for identifying internal and external frauds across all users, accounts, and channels in the organizations by transaction monitoring and customer profiling. Furthermore, it helps in identifying malicious behaviour and corruption in real-time thereby combating risks, minimizing losses, ensuring regulatory compliance, and optimizing operational efficiencies across the organization and entities.
EFM platform gives higher visibility in identifying threats and mitigating these threats. EFM solutions also offer a unified dashboard, enabling real-time monitoring of transactions and raising alerts for anomalies if required.

Some Noteworthy Features of EFMs are –

Centralized Data Repository – Businesses are developing centralized data repositories for clients’ accounts and transactions data for various products and services across multiple channels. EFM solutions process large quantities of data in real-time to create detailed profiles of clients and employees using high-performance computing technology based on machine learning, which can be used to detect and investigate money laundering and fraud.

Fraud Risk Assessment – A fraud risk assessment is a vigorous and continuously improving process. Organizations do thorough fraud risk assessments to identify individual fraud schemes and risks, assess their probability and magnitude, check existing fraud control actions. They introduce new rules and regulations to improve fraud detection. EFM solutions use risk scores to assess fraud based on guidelines provided by enterprise firm and analysed historical information. The new cloud-based EFM solutions are flexible enough to adapt these new rules and risk assessment tasks.

Real-Time Detection using Analytics – Since fraudsters are becoming more advanced, EFMs must evolve at a faster rate. EFM solutions allow for in-depth analysis of internal and external data collected from all resources for real-time fraud detection. In addition to rule-based fraud detection, sophisticated predictive fraud models fuelled by analytics on massive quantities of data are being developed. Risk is assessed in real-time for each transaction using a combination of parameters, algorithms, and cumulative statistics by comparing the characteristics of each customer’s or employee’s conduct with the fraud models and recorded patterns of behaviour. Techniques like graph visualization are used to identify underlying patterns and irregularities in data. EFM’s have forensic tools for e-fraud investigation. The aim is to use all available data to detect illegal activity before it happens and to avoid it before a customer’s account is compromised.

Scalability and Performance – EFM solutions are cloud-based, so there are no data storage and processing limitations. Financial institutions like banks with millions of customers and billions of transactions can be monitored with EFMs while retaining the fast detection needed in real-time environments. These organizations can leverage EFM’s cross-channel fraud management, user-centric fraud detection based on advanced AI. EFM solutions can easily correlate fraud events across the organization.

Enterprise Case Management – Enterprise Case Management uncovers hidden relationships in financial transactions. It is created primarily for financial fraud detection and investigations in the EFM solutions, it is built on previous fraud cases. These prebuilt and streamlined cases include key areas of fraud, which ease the process of fraud detection.

In the digital era, with evolving technologies, fraud attacks are also increasing at an alarming rate, indicating organizations to include Enterprise Fraud Management solutions to mitigate threats and frauds in the risk landscape.

Kaspersky Industry Analyst Summit 2021

Posted on May 4, 2021 by admin

Global cybersecurity solution provider, Kaspersky, recently hosted its industry analyst summit 2021. Research analyst Sachin Birajdar attended the virtual event on behalf of Quadrant Knowledge Solutions (QKS).
The summit was opened by Kaspersky CEO Eugene Kaspersky, who talked about ‘Cyberimmunity on CyberAge’. Next, Kaspersky CTO Andrey Efremov elaborated on Kaspersky’s product vision and strategy. Alexander Moiseev (Chief Business officer) explained Kaspersky 2020 performance/2021 Outlook, while Sergey Martsynkyan explained the Kaspersky stage-by-stage approach.

Following this, discussions concerning Kaspersky Optimum Security EPP EDR, MDR and Sandbox security awareness, Kaspersky Hybrid Cloud Security, Kaspersky Expert Security: xDR (EDR, KATA, MDR), Kaspersky Cybertrace and threat intelligence, Kaspersky MDR services, Kaspersky OS/transportation, Kaspersky industrial cybersecurity, and Kaspersky fraud prevention took place. Kaspersky also announced the launch of its Optimum Security solution, which integrates EPP, EDR, and MDR in a single platform to help users create critical incident response process and protect from evasive attacks. The Kaspersky analysts further informed that the company is focusing on providing comprehensive multi-layered protection to the hybrid environment, supporting advanced level security, robust, granular visibility and control, and seamless integration with Kaspersky Optimum Security and Kaspersky Expert Security.

On this occasion, Kaspersky analysts also explained about their new technology and service framework Kaspersky Expert Security. This solution helps users to detect and respond to threats in the network, including APTs and targeted attacks and helps to enhance their current security system. Kaspersky informed that it offers threat intelligence services to contextualize various aspects of security operations and helps minimize the detection and response time. The analysts added that the company’s MDR (Managed Detection and Response) service offers continuous machine learning-driven protection to analyze, investigate and respond to threats in real-time. Kaspersky also informed the attendees about their efforts to secure organizations’ operational technology layers and elements, including SCADA servers, HMIs, engineering workstations, PLCs, network connections with their product and service portfolio. The company informed that it also provides training programs and technical support to manage organizational endpoint security and control industrial networks centrally. Kaspersky explained how they are allowing and securing organizational global client interaction on the web or mobile channels and how they are using machine learning and risk-based authentication to secure access to the accounts and resources.

Kaspersky introduced a new Operating system (KasperskyOS) to protect web integrated systems in emerging digital transformation use cases such as wired and autonomous vehicles. the analysts also showcased customer stories and use cases as proof of customer satisfaction and efficiency of the Kaspersky’ products.

Quadrant Knowledge Solutions would like to thank the Kaspersky team for providing an opportunity to attend the event.

About the Author

Sachin Birajdar
Analyst – Data Analytics and Security Domain

Sachin is a part of Quadrant’s global research and consulting team. He is responsible for data analytics & security research.
Sachin is responsible for conducting global strategic market outlook, SPARK Matrix Analysis, and client consulting assignments. He has worked on strategic research and vendor evaluation projects for Data Preparation Tool, Application Security Testing, Bot Management, Deception Technology, Identity as a service, Mobile Threat Management, Privileged Access Management (PAM), and such others. Sachin is also a part of Quadrant’s best practice team in identifying the most promising companies in the data analytics & security domain space. He was part of the team for consulting assignments including detailed market mapping, custom market intelligence, analyst briefing, and such others.
Sachin holds an MBA in Marketing and BSC in Physics from Savitribai Phule Pune University, India.

How can Banks Combat & Mitigate the COVID-19 Fraud Attacks

Posted on April 14, 2020 by admin

Coronavirus is continuing to impact several lives of people and the economy worldwide; fraudsters are busily engaged in phishing and scamming mayhem. Both coronavirus and coronavirus scams can affect your health and finance. While the world is trying to deal with the threat of COVID19, cyber-criminals are coming with innovative ways to perform sophisticated frauds based on the continuing COVID – 19. Across the globe, people are working remotely with limited security features as opposed to working in the office. Everyone is in quarantine and following the social distance protocol. Owing to which everyone is shopping online for their daily needs. It is quite evident now customer shopping behaviors worldwide have changed and will persist in doing so in the times ahead. Doubtlessly, cybercriminals will keep following the trends of consumers and adapt their plans appropriately.

In most companies, fraud is identified post it happens; it’s imperative for financial organizations with the rise in technology, fraud detection, and mitigation takes place in real-time. They should adopt a real-time fraud management solution that can be tailored in accordance with their requirements. As online shopping continues to grow, even the security of online channels should become stronger and more advanced. Detecting frauds at a very early stage at the same time optimizing the customer experience should be the motto for banks. Various enterprises are plunging into a multifaceted method to combat and alleviate frauds. Acting recklessly with a haste plan can cause more damage than any good in the current COVID-19 situation.

Several types of fraud are hitting both the merchants and the consumers in these difficult times. Banks should conduct further authentication steps to access data, also adapt the limit for any fraud ranking models, enabling more false positives which support in preventing frauds. Banks or financial organizations should comply with regulatory compliance to alleviate risks. With a swift system in place, banks can be agile and smoothly alter algorithms or update models to safeguard their customers’ security.

Presently frauds are majorly attacking Business Email Compromise (BEC), Phishing, Gift Card Fraud, fake and fraudulent sites, eCommerce Fraud, Account Fraud, and such others. As It is easier to get distracted at home or be under different stress; hence such an audience becomes a soft target, and most people are falling prey to such fraudulent activities

COVID-19 phishing attacks – It started to rise in January 2020 and by the end of March 2020 it had a sudden surge. Most of the phishing attacks comprised of brand spoofing, scams, fraud emails, and business email compromise (BEC).

Disclaimer: Actual Numbers in the graph may vary as these are approximate figures.

Preventive measures to avoid frauds

Incorporate ML and AI-powered fraud detection solution

With the support of ML and AI, the fraud solution can consolidate data from all internal and external channels and analyze historical data, enabling the risk model to detect anomalies and abnormal behavioral patterns. Hence one of the best practices recommended is to integrate fraud management software coupled with intelligent automation, and advanced AI and ML.

Secondly, some fraud solution experts use risk scoring, device fingerprinting along ML and AI approach for detecting anomalies in payments and combating fraud attacks. The ML models can spot the probability of HTTP referrer is a phishing site and how to react to the phishing scams scenario. Sophisticated risk engine incorporated with AI and ML continuously monitors transactions and detects various fraud patterns along with the actual series of user behavior and continuously monitors and scrutinizes data. Whenever anomalies or fraud attacks happen, frauds can be detected by the fraud management solution in real-time, suggesting enhanced fraud protection layers.

In this rapidly evolving dynamics, the financial domain is facing a radical metamorphosis and customers expect banks to deliver a seamless experience. Smart banks advise today a comprehensive fraud approach demanding the intervention of human touch with sophisticated technology. Hence banks are embracing new technologies which help in flagging suspicious transactions and reducing false positives thereby minimizing losses and optimizing the customer experience.

Embracing multi-faceted and multi-layered security approach

A lot of sensitive information of entities and companies exists with banks. If hackers get access to such sensitive information, then the probability is higher to initiate a breach or fraud attacks. To combat such situations with stronger performance and response, it is becoming crucial for banks to embrace a multi-layered approach to cyber-safety.

Financial organizations must spend in data-ingestion from multiple channels enabling them to make a sound decision on fraud attacks and fraudulent activities. Integrating a series of valid tools like multi-layered approach, biometrics, behavioral analysis supports in minimizing frauds to a greater extent. It also helps in offering the right security level in accordance with the fraud levels.

Enhanced Protection for mobile payments

Many of us use mobile phones to shop online and pay through various channels and gateways. This is the reason cybercriminals are aiming the mobile platform in parallel with others. Whenever any person clicks on any unknown links or downloads any attachments, malware, trojans or virus can get downloaded which could steal sensitive and personal data, which may further lead to the malfunction of websites.

Hence banks should implement multifactor authentication, additional account verification, end-to-end cryptography, fingerprinting device, providing real-time messages, alerts, and emails, proper banking mobile application, investigating behavior analysis, and using secure access with safe online documentation. This can help in monitoring financial transactions continuously, ensuring safety, and blocking fraud threats.

Fraud Risk Management Solution

The fraud management solutions should help banks to safeguard from fraud attacks, detect and mitigate frauds and anomalies.

For an effective fraud management solution, you should bear the below pointers in mind –

Can the fraud management software be integrated with the prevailing software model to enhance the fraud mitigation layer?
Does the fraud management platform support multiple payment channels across different geographical locations?
Is your fraud management solution, providing a deep insight into model analytics or it is just merely a Black Box?
Does your fraud management program meet your expectations and appetite?
Is it possible for your fraud management solution to ingest data from any channel during the customer lifecycle?
Is your fraud management software coupled with intelligent automation, advanced ML, and AI?
Is the fraud management solution able to detect frauds, trigger the right alerts, provide the right investigation, offer recovery or backup plans with appropriate communications?
Is it improving the overall operational efficiency?

In difficult and uncertain times like this, we all are going through a tough phase. We are compelled to stay in isolation and work from home for our safety and protection. We must move slowly, watch out for minute details and refrain from taking hasty decisions. Banks should monitor coronavirus linked scams and implement a good fraud management solution to stay ahead of frauds. Stay vigilant and Be wise.

eCommerce Fraud Overview | Fraud in eCommerce

Posted on March 20, 2020 by admin

eCommerce is a big platform, increasing at an unparalleled pace globally; it constitutes a substantial possibility for brands and businesses to sell their goods and services. Consumers in recent times can purchase online products with multiple choices of brands at their ease and comfort. This gives customers an upper edge for an appropriate decision as they can do comparative pricing at a lesser cost without middleman intervention, thereby supporting eCommerce giants to perform at their best. Owing to this, there is an upward trend in online shopping in the last few years and eCommerce is undoubtedly the booming sector in online business.

The rapid expansion of online sales has introduced many competitors and significant contribution comes from online merchants like Amazon, Alibaba, eBay, etc. Online merchants are exploring multiple ways to generate additional traffic and sales. Hence the companies are creating numerous marketing strategies to increase their sales such as holiday sales, Black Friday sales, cyber sales, and much more to generate surplus traffic and sales. eCommerce can provide tremendous advantages if the company can differentiate amongst the genuine customers and fraudsters who are trying to escape amidst the multitude. With eCommerce growth, online fraud is also growing with skilled fraudsters using technology to hack systems, and criminals are continuously leveraging new types of sophisticated frauds.

eCommerce fraud

When a fraudster leverages embezzled payment details or fraudulently obtained bank account or credit card accounts to attempt or make online or retail transactions without the consent of the account or card owner is eCommerce fraud.

Major eCommerce frauds

Merchant Identity Fraud – Fraudsters create fake identities establishing a merchant account that appears to be an authentic business. Furthermore, they rob stolen credit card information to conduct multiple charges then proceed with the earnings prior the cardholder comprehends they have illicit transactions on their accounts and cannot retrieve the funds and held responsible for the damage and penalty.
Friendly Fraud or Chargeback Fraud – Customer pays for the online products using a debit card or credit card. In addition, they intentionally charge-back post after receiving the products declaring they never got the goods. Later, the customer is given a refund moreover the customer keeps the goods that they stated never received. Most of the time, the commodities are sold again to get money.

The other types of eCommerce frauds are Phishing, Clean fraud, Page Jacking, Affiliate Fraud, Triangulation Fraud, and Supplier Identity Fraud.

Online payments, digital wallets are luring more attention from cyber-criminals due to the prevailing limitations making this kind of fraud swift and simple to conduct which is quite often overlooked and unseen by users. Simple and easy pin passwords, non-coded data leverages hackers to exploit more and steal personal details and identities. Therefore, it is imperative for businesses to adapt to eCommerce fraud trends, monitor and analyze them to alleviate fraud risks and vulnerabilities.

In the current scenario, digital evolution is the critical factor for most of the enterprises and their expansion in the market who are embracing new technologies thereby shifting towards merging cashless economy, cloud deployment, mobility, an outbreak of Internet of things (IoT), and automation. The amalgamation of all these systems and technologies is enabling a data-controlled method to mitigate several financial risks and fraud threats throughout the financial landscape.

To combat and alleviate eCommerce frauds some far-sighted measures like ML, AI, IoT, and automation are adopted. eCommerce in the fraud space must be given the required attention and protection with the EFM platform, integrated with advanced technologies, cognitive learning, and automated tools helping to battle and block online frauds from digitalization.

Growing Fraud and Mitigation Trends | EFM Trends

Posted on March 6, 2020 by admin

In this digital era, fraud is getting sophisticated and is the most accelerating concern of this digital age. eCommerce and online payments are growing swiftly, resulting in a gigantic shift to mobile and digital applications, maneuvering to seamless payment executions. Frauds are performed in a sophisticated manner on the dark web leaving the least amount of time for banks and systems to battle frauds. A few of the emerging frauds are money laundering and terrorist financing, account frauds, and identity thefts. Hence, it’s vital for financial organizations to embrace advanced AI, ML technologies in Enterprise Fraud Management solutions as opposed to the conventional approach to block and mitigate financial thefts. EFM solutions aids in reducing operational losses, detecting and alleviating fraud attacks, and maximizing the overall customer experience.

EFM platform provides s real-time screening of transactions across all channels and payment types. An increasing number of internal and external frauds with access to payment card data, personally identifiable information (PII), sim card cloning, and stolen credentials by fraudsters are resulting in a substantial financial and reputational loss. Furthermore, cybercriminals are increasingly targeting mobile channels for login attacks as customers across the global regions are adopting mobile applications for various financial transactions and online sessions.

The banking sector is concentrating on centralizing its risk management process, integrating all the key capabilities, analytics, systems to combat fraud efficiently. They are also emphasizing constantly updating fraud management processes with updated rules and models. Multiple financial organizations are acquiring real-time data of transactions from all channels and external data, thereby helping to enhance the accuracy in the identification of frauds.

The financial sector is experiencing a revolutionary metamorphosis, and higher hopes of customers expect banks to perform a smooth experience. In the modern world of intricate fraud attacks, financial enterprises are incorporating new technology innovation in the EFM solutions for identifying and mitigating internal as well as external frauds in the fraud domain.

Learn more about other EFM Trends here.

Future of ML and AI in Financial Sector | Fraud Management Trends

Posted on February 28, 2020 by admin

The financial landscape is experiencing a revolutionary transformation, and tech-savvy customers expect banks to deliver a seamless and rich experience.

In the ever-growing sophisticated threats, too many frauds must be examined and improved manually. Hence, it is imperative for organizations to incorporate AI and ML-based technologies to differentiate among anomalies and malicious fraud. AI and ML identify patterns and supports the systems in acquiring configuration rule based on the pattern and the information is detected. Furthermore, ML aids in detecting suspicious financial transactions and money-laundering activities in real-time thereby flagging such activities and minimizing false positives.

Regardless of emerging trends of ML and AI in the EFM platform, some enterprises have still not utilized them because of various challenges involved. Such as the integration of ML and AI into the existing business functions and framework, the need for new resolutions to mitigate new kinds of attacks, and others.

Let’s look at the benefits which ML and AI has to offer –

Behavioral Patterns are detected at an early stage using ML and AI analytical models
Ensures safety and security of integration of customers data collated from various channels
It provides deep insights and analytics with visual graphics and a unified dashboard.
Prevents attacks and mitigates fraud.
Offers personalized customer experience.
Includes automation of processes with a minimal scope of errors.
Ensures regulatory compliance.
Enhances the branding of companies.
Optimizes the overall efficiency of the organization.

Due to many benefits and stiff competition, financial enterprises are embracing new technology innovations and integrating intelligent automation with AI and ML into their EFM solutions. The AML software, when joined with ML and AI can offer a lot of benefits like reduction in compliance costs with enhanced and effective solutions. AI and ML are becoming critical, empowering banks to handle the enormous quantity of datasets, combating and preventing fraud and fraud- attacks quickly thereby optimizing profit.

Hence in this ever-changing dynamics in an app-driven planet, it is crucial for banks to adapt to various combinations of AI and ML, supervised and unsupervised ML and technologies, multiple algorithms in accordance with their requirements, and then implementing them into their systems.

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Tag: Fraud Management