F E A T U R E
F E A T U R E
The current fraud landscape
Ryan Wilk , Vice President at NuData Security , a Mastercard company
Every week , news of another data breach or exposed server proves that massscale personally identifiable information ( PII ) leaks are now an unfortunate fact of life . The global threat environment is constantly evolving , fraud rates are soaring and fraudsters ’ exploits and data mining capabilities are increasingly sophisticated .
As a result , many of the newer authentication alternatives that layer on additional login steps are all too easily thwarted , such as those that layer on additional credentials and one-time codes that revolve around static data .
Online fraud offers a lucrative source of income for cybercriminals , with 3.6 million fraud incidents last year . With such tempting promise of high reward and low prosecution rates , emboldened cybercriminals have grown in their sophistication , exploiting the human-interest factor by posing as trusted companies and then duping consumers into revealing their personal details .
These scams have also proven to be effective in targeting senior executives from organisations , who have been tricked into revealing sensitive information – allowing access to the company network .
To detect out-of-character and potentially fraudulent transactions before they can create a financial nightmare for consumers , businesses must adopt new authentication methods that bad actors can ’ t deceive . Solutions based on consumer behaviour and interactional signals are leading the way to provide more safety for consumers , and less fraud in the marketplace .
Using biometrics to verify users
NuData Security , acquired by Mastercard last year , takes a different approach to user verification by rendering stolen data valueless . NuData accurately verifies whether a new or known user is behaving suspiciously by looking at what makes them inimitable : their behaviour . This way companies don ’ t have to rely on personally identifiable information alone .
NuData has an integrated multi-layered approach with passive biometrics that assesses what makes users unique . Together , and with the use of Machine Learning , the solution continually identifies legitimate or fraudulent activity as it evolves .
This proactive approach has a fraud prevention accuracy of 99.9 %, protecting user accounts and companies form most forms of fraud , including account takeover with stolen credentials .
Banking fraud
Lukayn Hunsicker , BAE Systems Global Head of Banking Fraud Solutions
Fraud affects every type of financial institution , from small , local banks , to credit unions , to the biggest banks in the country . Fraud solutions for each of these institutions are unique to the business .
BAE Systems offers various types of solutions for any type of bank , large and small to help prevent banking fraud and to secure business in the long run . With emerging technologies opening the door to more vulnerabilities , and bad actors finding new ways to enter networks , all banks must take steps to strengthen their defences .
BAE Systems offers a wide array of solutions , one that is designed to help prevent fraud in the banking sector . We do this with market-proven financial crime analytics and risk management solutions that help protect against some of the most complex industry threats .
One example is NetReveal , our risk , fraud and compliance solutions platform , which uses advanced analytics and expertise to unlock data intelligence , helping organisations identify and prevent financial crime .
Preventing fraud can come easily if the right parts are put in place . One best practice for general security health is to always have a clear and thorough business strategy in place , which dictates security strategy across the business . A single business strategy , particularly for smaller banks with less resources , should be kept in mind when developing fraud strategy to ensure long-term security and company alignment .
Overall , financial fraud detection has come a long way in recent years . For example , open source and Big Data technology gives institutions a leg up on addressing financial crime . Overall , technological advancements enable banks to address fraud in a better way , allowing the ability to address new transaction types in a faster manner , while also pairing with analytics in near real-time stream .
In today ’ s connected world , the increasing convergence of techniques and approaches used between cyber and financial crime can open up new risks . Advances in technology means that people , and funds , move around the world faster than ever before . While all of these factors increase the abundance of fraud in the banking sector , it is preventable with the right solutions in place .
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