5 ways to combat Fraud in this Digitalization Era

Digitization has brought limberness, speed, and accommodation, but additionally challenges for financial institutions that must ken and impeccably identify their customers, their desiderata and deportments, while offering them more personalized accommodations and, concurrently, forfending them against fraud. potentials to which they are exposed to a quotidian substructure.

According to Juniper Research, by 2021, a moiety of people ecumenical will utilize a phone or perspicacious watch, tablet, or PC to access banking accommodations. However, the relative anonymity of digital channels opens the doors to fraud; hence the paramountcy of verifying the identity of users and doing so in a way that does not compromise the celerity and precision of transactions.

Below are the five ways to combat Fraud.

1. Double Authentication: Two- factor authentication must be reinforced with the establishment of a Digital Decision Hub with omnichannel capabilities, through which the contrivance that the client customarily uses can be identified, how it authenticates, if it is done through biometrics (dactylogram or iris ), where you are (geolocation), what type of connection you utilize. Likewise, this center consults a wide base of threats/blacklists, and of the public registry (credit history, gregarious security, etc.). A supplemental recommendation is to reinforce the fraud-fighting team with identity analytics implements.
2. Multi-layered Security: Protection is applied in different layers: in the contrivance with which the client interacts (ID, SNN), in navigation and the network, which reveal the demeanor of the utilizer (entity), in how the utilizer comports on each channel, in the products it consumes, and in analytics and Sizably voluminous Data to connect all the information of the entity with the total context of the utilization of the network.
3. Advanced Analytics and Artificial Intelligence: Detection is done at three main levels: events, entities, and networks. A robust solution will sanction elements such as predictive modelling, database searches, text mining, automatic business rules, and anomaly detection to be cumulated to lead to a reliable alert generation process.
4. Make Decisions in Real-Time: Implement a technological solution that monitors transactions at the time they are carried out in order to detect and avert fraud, applying analytics to financial institutions, products, and channels, as well as consolidating sundry data sources in a single view, so that financial institutions can understand patterns and detect anomalies. Utilizing machine learning and artificial intelligence (AI) techniques, it is possible to analyze comportments outside the mundane pattern and soothsay suspicious activities, without affecting the mundane variations in customer behavior.
5. Research Support: Tracking criminal activity requires the intervention of a team of investigators who are experts in identifying fraud and peril. These professionals rely on advanced technology and artificial perspicacity to achieve this. With solutions like SAS Visual Investigator, financial institutions can define, engender, coordinate, and manage alerts, conduct detailed investigations, and tailor the platform to meet their individual and organizational needs.