As fraudsters become increasingly sophisticated, how can banks adapt their detection and mitigation responses? The industrialisation of fraud requires a digital response. Smarter data collection and more sophisticated analytics are a key part of the fraud detection processes. In order to find patterns of fraudulent activity you need more context, more data integrated into automated, network analysis tools rather than teams of analysts pulling spreadsheets from multiple systems.
The need to identify hard-to-spot patterns and networks in transaction data cuts across all product and business areas. Controls must be tailored to each institution’s specific business model. Individual transactions rarely provide useful counter-fraud intelligence. It is the links between transactions and the context in which they occur that can identify bad actors, bad networks and sophisticated financial crimes.