Risk Analytics To Fight Fraud _ CIO Applications Europe

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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 isnt
surprising, but since the pandemic,
cybercriminals have become more active, as they
take advantage
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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
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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
Kasperskys 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.