The guide to combatting cross channel fraud

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Combatting Cross Channel Fraud in 2015


Pervasiveness of Banking Fraud

Fraud is omnipresent & as the technology is rising the fraudsters turn to new ways and newer channels to target banks and customers.

Most common type of banking fraud across the globe are:-

Skimming : Card fraud is one of the most fascinating aspects of the payment industry, not least because it is relentless and mutating.It means that attaching a device to the mouth of the ATM that in secret swipes of debit and credit card detail when their card slides to the machine. And by using these information fraudster successfully create the counterfeit card. In simple word “ Theft of payment card information”.


Pervasiveness of Banking Fraud CNP (Card Not Present): Because of the accelerated proliferation of online and

mobile-commerce, card-not-present (CNP) fraud is an increasing concern to banking. It is a fraud in which customer does not physically present the card to the merchant during fraudulent transaction.According to report of Payments technology company , the CNP has topped the list amongs all the fraud.

Online: Online fraud cost companies billions of dollars each year, cutting dramatically into earnings. This emphasis on mobile and online fraud is even more disturbing as merchants rely on the upcoming switch to EMV to reduce card fraud. Fraudester take over victim's online banking account through some course of action like man-in-the middle attack, phishing & money mules. Online fraud alone has cost the global economy more than 400 billion USD.


Problems with current fraud management

As banking institutions have grown bigger, managing multiple portfolios and

business lines across numerous channels has made fraud detection harder.

Another major challenge that banks face is the quantity as well as the

variety of information that needs organized and to be mined to be able to

find fraud.

Quantity & Variety of information in bank are not organised due to which

the level of fraud is increased & its hard to detect the fraud.


Problems with current fraud management solution Most of the solutions available today are focused on only one channel or

type of crime. Silo based transaction systems and multiple systems of record make measuring the success or failure of existing fraud defenses a challenge.

While rule-based systems are proficient to spotting the fraud patterns but the fraudster has discover the new ways to circumvent the system.

In addition, too many false positives, lack of speed in transaction authentication and inefficient investigative processes drive up operational costs, as banks are forced to increase spending on enterprise financial crime management against sophisticated attacks.


Fighting Fraud

The challenges discussed above have led to the extreme need of discarding age old fraud management systems that follow the starfish approach of working in silos, without any sharing of real-time information across different channels.

As banks are behaving like proactively because the detection of fraud at given channel happen post facto,without taking any consideration update from other channel,which in turn diminishes the chance of predicting future cross channel attack.

Therefore, to counter frauds, a holistic view of the entire ecosystem is required that takes into consideration different entities and cross pollinates useful information in real-time across multiple products and channels. To overcome all these drawback the cross channel EFM solution is best .


Benefits of Cross channel fraud management solution

Enhanced fraud management capabilities with a holistic view : A centralized software platform that performs cross-channel fraud analysis not only prevents suspicious activity from getting through to the system but also creates fraud and AML alerts which give financial crime investigators a full view of particular customers and the range of activity they are performing. This results in growth of its knowledge of risky customers and their range of activity.

Increased Efficiency: The combination of cross-channel fraud and a lack of communication mean an inevitable overlap in investigative effort.

Immensely reduce occurrence of "False Positives": Due to the cross pollinated intelligence acquired from different channels and identification of suspicious patterns before the transactions go through ,the “False Positives” reduce immensely.


Benefits of Cross channel fraud management solution

Reduced Reputational loss due to fraud: Banks lose money as well as reputation due to fraud. This loss of reputation results in loss of potential business. A crosschannel solution helps mitigating this loss by proactively detecting and preventing banks fraud .

Enhanced customer advocacy & loyalty: Reduced frauds across channels ensure winning back trust of customers.


Thank You

The guide to combatting cross channel fraud

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Transcript of The guide to combatting cross channel fraud