The infusion of technology in almost every aspect of banking, has given fraudsters additional avenues for to impact banking processes and financials. In the latest ‘Report On Trend And Progress of Banking In India 2011-12’ presented by the Reserve Bank of India (RBI) to the Finance Secretary, RBI categorically mentions “Ensuring efficiency of the banking sector by way of technology infusion while minimizing the occurrence of such fraudulent events has become one of the major objectives of the Reserve Bank in recent years. Going forward, there is a need for building up a robust mechanism to prevent incidents of fraud in areas of mobile/net banking and electronic fund transfer”
Tagged: Fraud Monitoring
Fear of fraud is seen as a challenge by banks in introducing innovative services and products.There is a great need for including fraud control imperatives in the banking service innovation journey. This blog analyzes the case of innovative Get Cash service at UK’s NatWest bank and how the fraud could have been avoided with intelligent fraud control systems in place.
Migration from traditional ‘one size fits all’ 2-factor authentication methods to a dynamic risk based approach, which uses all available customer, account, payment and device data to manage fraud and risk across the enterprise can be an intelligent move to make as banks would want to monitor transactions and prevent fraud and at the same time do not want to affect the banking experience of its customers. In order to enhance the customer experience banks might need intelligence about account/customer behavior patterns and assess the risk associated with a transaction and advise the right action (challenge/decline/allow) at the right time. Read on…