
Utilizing Risk Analytics to Fight Fraud and Maintain Compliance
According to a recent report, as mobile banking use increased, so did the number of mobile banking trojans in the channel. Both forms of fraud, including account takeover attacks, are made simpler by phishing and malware attacks.
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CIO Applications Europe | Wednesday, March 31, 2021

According to a recent report, as mobile banking use increased, so did the number of mobile banking trojans in the channel. Both forms of fraud, including account takeover attacks, are made simpler by phishing and malware attacks.
FREMONT, CA: Financial fraud is a never-ending fight. According to a recent estimate, overall card fraud losses in the UK totaled €706 million in 2019, with remote transactions responsible for 76 percent of these losses. This isn't shocking considering the rise of ecommerce, but after the pandemic, cybercriminals have become more involved, taking advantage of people who use digital networks to perform financial transactions.
The challenge for banks and financial institutions is to strike a balance between regulatory requirements and the need to protect consumers from the ever-increasing threat of fraud, all while maintaining a positive customer experience.
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Digital fraud and Account Takeover Attacks Increasing
Consumers were required to use a smartphone and digital banking to comply with social distancing mandates as lockdowns were introduced around the world. Criminals have often followed the money, so as transactions moved to these online worlds, the number of digital types of fraud increased.
Simultaneously, it is seen that con artists prey on people's fears and enhanced contact to dupe them into falling for scams. Since the beginning of the pandemic, people have seen a slew of coronavirus-related phishing campaigns aimed at stealing confidential information from users, as well as a slew of other campaigns aimed at tricking people into downloading malicious files, including malware. According to a recent report, as mobile banking use increased, so did the number of mobile banking trojans in the channel. Both forms of fraud, including account takeover attacks, are made simpler by phishing and malware attacks.
Banks vs. Consumers
Individual liability, on the other hand, cannot be entirely attributed to the individual. To secure their customers' accounts from attacks using stolen credentials, banks use a flexible, multi-layered approach to protection. Banks and financial institutions must incorporate risk-based fraud detection systems that use machine learning to identify and prevent fraud attempts in real-time while maintaining a positive user experience.
Risk analytics sift through vast quantities of data from a number of sources, including the computer used, location, and transaction history. Machine learning algorithms can continuously track banking sessions and analyze data points such as time of day, session duration, and spending patterns. All of this data can be combined to form a complete image of a person's typical actions. Any unusual activity that may be considered fraudulent can be detected in real-time, and additional security measures can be implemented as required. Instead of stopping the transaction outright, which may cause confusion, if a user deviates from the standard and sends £1,000 from a new venue, the customer will be asked to provide a fingerprint to supplement a passcode.
See Also: Top Risk and Compliance Consulting/Services Companies
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