CTOS Data Systems Sdn Bhd, Malaysia’s largest credit reporting agency, has rolled out its application fraud bureau CTOS IDGuard with local leading banks.
These banks are Maybank, RHB, CIMB, Alliance Bank and Ambank.
CTOS IDGuard is South-East Asia’s first application fraud bureau and is powered by GBG’s industry leading fraud detection engine, which is able to provide the banking sector with real-time automated alerts on potentially fraudulent credit applications.
“At CTOS, we are continuing to bring world-class fintech solutions such as IDGuard to life in the Malaysian market, while using homegrown talent and knowledge to ensure local implementation is the best possible, ” said Dennis Martin, (pic) group chief executive officer of CTOS Digital.
Since July 2020, CTOS IDGuard has successfully identified and prevented potential fraud losses of up to RM50mil in fraudulent applications including personal loans, cards, auto-financing, mortgages and SME loans, which equates to a 74% increase from the banks’ normal detection rates.
“Today, banks participating in the fraud bureau are sharing applicants’ demographic data and application data to sieve out bad actors and prevent fraud loss. This year, 40% of Malaysian financial institutions are planning to invest in device fingerprinting to be able to identify suspicious devices used in applications.
“As banks equip themselves with richer data intelligence and are able to share data beyond basic profile records, the efficacy in fraud detection and prevention using the fraud bureau is anticipated to continuously increase, ” said GBG managing director of APAC Dev Dhiman.
Martin said the CTOS IDGuard had gone through over two years of planning, design, analysis and production as well as rigorous testing in its pilot phase. He added that three more banks will be coming on board in the next quarter, with several more indicating their interest to participate in the platform.
“The feedback from participating banks has been very promising across the board, with partner banks sharing that investigation facilitation has increased by 21%, decisioning confidence and operating efficiency has increased by 20%, and in terms of value for money, IDGuard partners have saved over 23 times their investment in the solution. “This successful implementation of CTOS IDGuard cements our role as one of Malaysia’s leading fintech providers, ” he said.
Recent market research from GBG has shown that many financial institutions are aware that the potential threat from application fraud is likely to increase, with 51% of Malaysian financial institutions expecting cases involving stolen IDs to increase and 54% expecting scams to increase in the next year.
“We would encourage all banks to join this unique shared platform to stop application fraud in its tracks. Banks which become members of the CTOS IDGuard fraud bureau will be part of an industry group that will share best practices and latest trends in fraud locally and regionally every quarter, ” said Martin.