AML & Fraud Solutions Finmedia 16 Iunie 2011 SERBAN POPA.
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AML & Fraud Solutions Finmedia 16 Iunie 2011 SERBAN POPA
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Transcript of AML & Fraud Solutions Finmedia 16 Iunie 2011 SERBAN POPA.
Confidential 2
About ActimizeFinancial Crime, Risk, and Compliance Company:
$100M financial crime, risk, and compliance software company ~550 employees: London, Paris, Frankfurt, Utrecht, Milan, Kosice, New York,
Atlanta, Tokyo, Hong Kong, Shanghai, Tel Aviv Part of NICE Systems (NASDAQ:NICE; ~$600M+ revenue; $500M+ cash)
Technology & solutions: Integrated core technology platform Fraud, AML, brokerage compliance & enterprise case management – single
platform Transaction and interaction surveillance, integrating voice & data
Proven track record – 260+ clients worldwide: Processing billions of transactions daily Banks, credit unions, securities, insurance, regulators Clients of all sizes
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Clients (Public List)
10 of top 10 US banks 10 of top 10 Global banks 9 of top 10 EU banks7 of top 10 US IBs 3 of top 5 AP banks
Integrated & Selected by Leading Industry Service Providers
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130+ retail banking, corporate banking, securities, asset management and insurance Combines focused models and rules with Fortent statistical analytics Industry’s lowest false positive rates; improves productivity by ~50% Covers all and global & national regulations & guidance, typologies etc e.g. Romanian
Law 656 of 2002 (as amended in 2010), NOPCML Decisions, NOPCML Suspicious Transaction Guidelines, Government Decision 1599/2008, 3rd Money Laundering Directive, EU Regulations, USPA, FATF, Moneyval , EAG, Wolfsberg, etc
Actimize Anti-Money Laundering Suite
“…strong capabilities and a blue chip list of customers including some of the world's largest banks...”
– Mercator Advisory Group
“Flexible transactional analysis and case
management”
“focused domain expertise”
“very appealing to financial institutions”
– Celent
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Comprehensive, End-to-End AML Solution
Watch List Matches
AlertsCustomer Risk Score
Activity Profiles
Consolidated Customer View
SARs
CDD Risk Models
SAM alerts and SARs impact CDD customer risk score SAM alerts and SARs are included in single customer view SAM activity profiles are used in CDD models CDD score contributes to SAM alerts scoring Watch list hits contribute to customer profile & risk score
POLICY MANAGER
DART
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KYC – Applicant Process Fully flexible interactive on-boarding form
Covering all KYC/CDD Regulations:» Simplified
» Normal
» Enhanced
Ensuring consistency, efficiency, accuracy Countering careless, ignorance, connivance
Verification of Identity against public sources Negative News Degrees of Separation Initial List checking Case Study - Client: mid-size financial institution
» Time to complete a KYC check:
» From 7 to 1.7 minutes – 76% decrease
» 5-year savings: over $3 million
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Actimize Suspicious Activity Monitoring (SAM)
Profiling (clients, agents, introducers, managers etc): Historic Behaviour Peer Group Behaviour Anticipatory Behaviour
Incorporating cash payments, transfers, securities, derivatives, insurance, financing etc
Online Suspicion Filing Logical Entity Detection, Entity Focus Classification & Surveillance Party GroupsCost effective and fast to deploy
Productivity increased by 50% using integrated
investigation Tools
Standardized and streamlined Workflow
Easy and quick implementation
– solution has been deployed in 90 days
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Uniquely Strong Analytics Engine Intelligent matching algorithms
Artificial intelligence string matching Synonyms Cultural matches Misspellings / typos / inversions Abbreviations / acronyms / initials Organization classification Name parsing Geographic Normalisation
Examples ‘Barritt matches ‘Barratt’ matches ‘Barrett’ ‘Abu Ahhmmed Yasin’ matches “Sheik Ahmed Ismail YASSIN” ‘Billy Clinton’ matches “William Clinton” ‘Home Loans LTD’ matches “Home Loans PLC”
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Global Fraud Trends There are a number of trends that are common across
multiple geographies
Fraud is becoming cross-channel Move to real time Card fraud is changing rapidly New technology-based attacks
Although fraud varies widely by geography, there are a number of ways in which fraud is evolving that are consistent across geographies.
• Major changes in card fraud
• Move to real-time transactions
• Cross-channel fraud
• Coordinated authentication & transaction monitoring
• Channel confidence
• New technology-based attacks
• Adaptability
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Move to Real-Time Transactions There are a number of trends that are common across
multiple geographies
Fraud is becoming cross-channel Move to real time Card fraud is changing rapidly New technology-based attacks
Payment systems are increasingly real-time and this presents new risks
• Driven by regulation
• Also driven by customers and marketing
• 10x increase in fraud attempts in the UK after Faster Payments
UK: Faster Payments
EMEA: SEPAUS: Retail Wires
Brazil: TED Payments
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Cross-Channel Fraud There are a number of trends that are common across
multiple geographies
Fraud is becoming cross-channel Move to real time Card fraud is changing rapidly New technology-based attacks
Fraud increasingly is perpetrated across many channels and more and more attacks involve more than one channel.
• Online fraud attacks
• Phone channel attacks
• ATM attacks
• Multi-channel attacks
US Attacks
UK Attacks APAC Attacks
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Actimize Cross-Channel Fraud Solution Suite Proven cross-channel and real-time capabilities @ 80%+ detection rate Enterprise fraud solutions – available individually or as an integrated suite #1 vendor in analyst reports – including Gartner and Datamonitor
Actimize receives Strong Positive, highest rating available, in leading analyst firm's Enterprise Fraud Management MarketScope
- Gartner
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Enterprise fraud program requires a balance of a powerful platform with effective out of the box solutions
Actimize Enterprise Fraud Fundamentals
Key Platform Capabilities: Accurate Analytics Cross-Channel Fraud Operations Synchronous Real-Time Flexibility Reliability & Readiness
Out of the Box Solutions: Card Fraud – Debit & Credit Remote Banking Fraud Employee Fraud Wire & ACH Fraud Deposit Fraud
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Platform: Accurate Analytics Actimize unique Phase-Based™
models permit sophisticated analytics on the right set of trx
Phase-Based analytics calculate: Safe Score to allow legitimate
activity
Threat Score to prevent fraud as attack evolves
Transactions
0
100
Threat Score 60
8090
0
-100
SafeScore
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Platform: Cross-Channel New channels add
new profiles
Customer and Account profiles are shared across all solutions
Only the Actimize solution provides fraud and channel coverage across all silos
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Platform: Fraud Operations
Alert & Case Management Workflow; delegate & escalate Block/unblock transactions Alert & case objects Management information Business process support
(dial & decide, smile & dial, etc.)
Investigations Instantly query relevant data Query across
Web logs Transactions Phone, etc.
Plain language interface; no need for IT
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Synchronous Real-Time Detection True real-time prevention
Actively receive and analyze transactions Return decision / action within ~100ms 2x to 3x reduction in fraud losses at the same rate of detection
The devil is in the details Critical: in-line fraud detection should not bottleneck the platform Reliable: handle platform complexities (e.g. failed/late transactions) Available: must be continuously available, support multi-site
Actimize has successfully completed over a dozen real-time implementations at major FIs with up to 1000TPS and 50-100ms
response times
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Platform: Flexibility Business user tools for fraud strategists and analysts
React to changes in fraud threats – quickly and effectively Configure for unique sets of needs and requirements
Policy & Rule ManagerVisual Modeler
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Platform: Reliability & Readiness Fraud detection connects to mission critical banking platforms Failure of fraud system should not bring down banking systems Number of real world complexities that must be solved:
The Actimize Core Risk Platform is proven in over a dozen multi-site, high-volume, real-time implementations
Duplicate records
Corrupted transactions
Lost transactions
IT operator error
Component failures• Engine• Alert manager• System calls• Full site
Database replication
External score integration
Check image integration
Auto-dialer management
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Card Fraud Solution Targeted capabilities for issuers, acquirers, processors, retailers Detect and stop fraud across all card products – in real-time Proven, consortium-backed analytical models; billions of trx. Clients include MasterCard (global) and DBS (Singapore)
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Remote Banking Fraud Solution Prevent account takeover, identity theft in remote channels Online, call center, IVR, mail, mobile, payments & banking trx Clients include Bank of America, largest U.S. online bank
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Employee Fraud Solution Detect self dealing, embezzlement, collusion, ID shielding, etc. Combines interactive investigation tools and analytical models Clients include Lloyds TSB (UK), several top 10 banks/issuers
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Wire & ACH Fraud Solution Stop electronic payment fraud in commercial/retail banks ACH, bill pay, wires, internal transfer, and more Clients include Bank of America, Wells Fargo, Checkfree
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Deposit Fraud Solution Detect and stop fraudulent paper, electronic deposit activity Covers paper and e-checks at new account and ongoing Clients include Nationwide (UK) and Vanguard (US)
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Why Actimize Fraud Solutions by Romsym Data?
Proven end-to-end platform Cutting-edge analytics for improved fraud detection and prevention Alert and policy management, investigations, and oversight
Complete fraud solutions for multi-line banks and brokerages Proven fraud solutions across all major areas of business Cross-channel, cross-product solutions for all major forms of risk
Part of a comprehensive, practical enterprise fraud solution Solutions leverage mature fraud analytics and operational platform Used by the leading and largest institutions worldwide Romanian local support in analysis phase, implementation and post go-
live support and maintenance
