Fraud is a vast business conducted both by organised and increasingly sophisticated criminals and also by opportunists inside and outside banks and other organisations. Digital banking, remote working and Covid-19 have all acted like rocket fuel to propel recent strong growth in fraud worldwide. Rapid advances are being made all the time by the fraudsters, and a portion of the vast sums of money stolen through cyber-crime are being recycled to even more ingenious technology- based crime weaponry.
There are no precise numbers available but estimates for global financial sector fraud in all its manifestations might, many believe, run into the trillions of dollars when factoring in internal fraud, external fraud and cyber-crime. The ongoing digitisation of the customer interface with their financial service providers offers those customers greatly improved services but brings far greater risks to the providers and also to the customers. The continual surge in numbers of mobile phones around the globe presents a vast challenge to the financial industry, hence vigilance must be constant and across every nook and cranny of the world of finance and financial transactions.
The shocking prevalence of criminals – whether serial or opportunistic – who are operating within financial institutions is a frightening reality. The danger is so great because some highly trusted IT and other staff will always require super-user profiles to perform their everyday duties or to carry out essential maintenance on the core banking systems.
But the big message emanating from the Hubbis virtual discussion event of April 14 is that there is hope, that the fightback is nevertheless taking place. Advanced AI-based anti-fraud technologies can fight back against all these avenues of exploitation. FinTech anti-fraud solutions are improving all the time as their ability to identify and block suspicious activity in real-time is becoming the trusted defence against the biggest fraud risk in banking. Big Data advances are moving so fast that there are ever more and ever-faster tools to help financial institutions fight back.
Moreover, the banks are increasingly working together and with the authorities as well, knowing that they cannot tackle this problem alone; they must work with industry peers and other parties in a far more coordinated manner. They must bring in the best global expertise, work with those firms and experts at the cutting edge of technology prevention, and with those who best understand the multitude of ways in which cybercriminals can penetrate organisations.
The eradication – through technology and human solutions – of vast numbers of false positives every day at every financial institution is a vital step in mining out the real criminal activity. Constant vigilance is needed, optimal digital solutions must be employed, greater domestic and global coordination must become the new norm. All these elements combined will very probably never stop fraud, but they will most certainly help to keep a lid on the worse excesses.
Source: Hubbis news