Financial institutions owe it to their consumers to protect their data and finances from fraud or outright fraud.
Fremont, CA: The use of big data analytics tools to overcome online financial fraud is fraud analytics. It can enable financial institutions to forecast future fraudulent behavior and provide real-time protection against all types of fraudulent behavior.
Every year, more people use online banking or manage their accounts online. In 2020, the global lockdown caused by COVID19 encouraged even more clients to adopt online banking with at least some of their financial transactions. Online fraud, which was already on the rise year after year, now followed suit. Account takeover (ATO), a prevalent type of financial crime, increased by more than 280 percent between Q2 2019 and Q2 2020. As a result, financial institutions must now implement comprehensive fraud control measures to secure their consumers' accounts more than ever.
The challenge of financial fraud
Financial institutions owe it to their consumers to protect their information and finances from fraud or outright fraud. It's become a complex undertaking, at least in part because users can access their accounts through any means. They can conduct their banking transactions through a mobile banking app, a net banking site, a contact center, or by going to the bank in person.
There are approximately 15 billion stolen credentials on the dark web for sale. Cybercriminals can buy them with as little as 15.43 dollars on average for consumer data to more than 3,139 dollars for certificates for an organization's essential systems.
Financial fraud risk management relies heavily on fraud analytics
The unfortunate thing is also that online fraud continues evolving all the time. As banks implement corrective actions, other threats emerge. Traditional, static rule-based fraud prevention systems are incapable of keeping up. The best news is that financial institutions have access to a lot of data and can be used to predict and identify financial crime and respond to emerging threats.
Collecting login information at login isn't any longer enough to protect against fraud. When someone attempts to access an account, additional data can be utilized to assess whether or not the client is legitimate or whether or not the transaction requested is lawful.
