Quantcast

Banking Fraud Prevention: System Silos Create Gaps for Criminals

In PwC’s Global Economic Crime and Fraud Survey 2022, 44% of financial services organizations surveyed reported customer fraud, 38% reported cybercrime and 29% reported know-your-customer failure. And fraud costs. Every $1 of fraud loss now costs U.S. financial services firms $4.00 (LexisNexis® True Cost of Fraud™ Study: Financial Services & Lending). But it’s not just the financial implications that organizations have to worry about, the impact of fraud can cause customers to lose faith and brand reputation can fall to pieces. Something needs to be done to monitor and control fraudulent activity in banking. 

The rise of mobile and open banking has seen fraud become more prevalent. As technology makes it easier for professionals and consumers to manage their money, it also makes it easier for criminals to take advantage of vulnerabilities in the system. 

Banks particularly struggle with fraud due to the way that their infrastructure has built up over the years. The siloed storage of information has made it hard to (literally) connect the dots and detect fraudulent patterns of behavior.  

 

Connect disparate systems to detect fraudulent activity 

The inability of controls to ‘talk to one another’ among different parts of the organization is a top barrier to improving fraud prevention, according to a 2021 survey by iSMG Information Security. Businesses need to develop an infrastructure that offers a secure, holistic view across all their information if they want to detect patterns that may indicate fraudulent behavior.  

Another problem is that today’s fraud schemes are too sophisticated and evolve too quickly to keep change of pace. In fact, iSMG’s survey found that it was rated the top vulnerability in banks’ fraud defenses. So, any fraud prevention technology put in place needs to be able to adapt and update at the same rate. 

The solution is an agile platform that allows you to develop processes and integrate applications in fast sprints so that you don’t get left behind by cunning fraudsters. A flexible, agile system will also allow you to connect your existing IT systems in a secure way. This provides visibility over all your information and ensures tighter control on end-to-end processes. 

 

Defend confidential information  

It’s not just monetary theft that’s a concern. It is a legal responsibility for banks to keep their customer data safe from unauthorized access by implementing comprehensive security measures to prevent data breaches. 

One of America’s largest banks, Flagstar Bank suffered a network security breach in December last year which saw hackers gain access sensitive information of more than 1.5 million customers and resulted in the bank having to pay $5.9 million in out-of-court settlements.  

MIT has warned that AI can ‘enable cybercriminals to direct targeted attacks at unprecedented speed and scale while flying under the radar of traditional, rule-based detection tools’. Scary stuff. 

 

Protect your brand and assets 

All these threats mean that people are more aware of the vulnerabilities in banking. So customers need to be reassured that their money and information has sufficient protection. 

If you are repeatedly falling victim to fraudsters, it will have an impact on your customer retention and satisfaction. Banks need to instil confidence in their customers that their services cannot be infiltrated by criminals. Carnegie Mellon University has proved that there is a clear relationship between security breaches and loss of customer trust and loyalty. 

If banks want to ensure that their brand remains intact, they need to identify risks with fraud monitoring tools and put real-time integration in place. 

 

Adhere to compliance to ensure security standards are met 

As threats increase, regulatory standards tighten. Banks must perform appropriate checks during the onboarding phase and continue to monitor behavior throughout the customer journey. And it’s not just external threats – insiders and ex-employees pose the greatest threat, so ensure that you have stringent internal regulations in place too. 

Digital processes can help to diminish these threats by keeping criminals out and prevent any internal human error or intentional misconduct. Automation can help to enforce a central audit system to record data and actions and help you to prove compliance across your channels. 

You can prepare for fraud detection from the outset by using DPA to help you carry out due diligence and Know Your Customer (KYC). If you use the correct tools and analytics during the onboarding phase for customer identification and authentication, you can complete a thorough risk assessment. The signs are often there, you just need to technology to identify them, such as real-time monitoring and other anti-fraud measures. 

If you would like to see fraud control using Bizagi in action, watch our Mortgage Loan Demo on-demand.  

Bizagi’s machine learning capability can be used to predict whether cases need to be sent to fraud preventions professionals or not. 

 

Don’t become another statistic. Ensure that your disparate systems and data sources are connected with a process layer helps you to gain an agnostic view of client information and activity. This will help you to remain compliant and makes it easier to detect fraudulent activity. You can even anticipate and prevent it from happening, potentially saving any reputational damage and millions in lost revenue. 

To find out how you can connect systems and verify information to prevent fraud and deliver the best possible experiences for your customers download our ebook The Essential Guide to Modernizing Banking Operations.  

Modernizing-Banking-Operations-mockup (1).png

Agile & Low Code

Jump to Lightspeed: How to Use PaaS to Drive Transformation Velocity 

Banking

[Infographic] 3 Processes Ready for Automation in Banking

Use Cases

How CBC Orchestrated Their Distribution of PepsiCo Products

Banking

Loan Origination: The Benefits of Automating the Process

Banking

5 Ways to Empower Banking Employees with Automation 

Infographics

[Infographic] Bridging the Gaps in Banking

Use Cases

4 Ways Tatweer Petroleum are Using Automation to Optimize Operations

Banking

Perfecting the Customer Experience in Banking

Digital Process Automation

Ease the Strain of Supply Chain Disruptions in the Energy Sector with Low-Code Automation 

Manufacturing

3 Ways Unilever International Achieved Agility at Scale 

Banking

Banking Automation: 4 Essential Tips to Transform Your Bank

Agile & Low Code

Why You Need a Cloud-First Strategy 

Banking

3 Ways IT Leaders in Banking can Drive Transformation

Banking

How AgFirst Bank Ensures Compliance with Automation

Banking

3 Processes Ripe for Automation in Banking

Use Cases

Automating the Vendor Management Process: Benefits at 5 Key Steps

Banking

Transforming Approval Processes in Banking: Real-Life Examples

Manufacturing

What is Supply Chain Sustainability?

Process Modeling and Mapping

How to Find and Fix Bottlenecks in Your Supply Chain 

Process Modeling and Mapping

What is Process Improvement? Methodologies to Help Your Business

Manufacturing

Want a Resilient Supply Chain? It’s Time to Automate Manual Processes 

Manufacturing

[Infographic] Supply Chain Orchestration: Fixing the Gaps in Your Operations

Manufacturing

Supply Chain Automation: Use Cases for Every Point in Your Logistics Network 

Manufacturing

How to Build a Connected Supply Chain

Person at desk building business process map in Bizagi Modeler on laptop Agile & Low Code

3 Low-Code Use Cases: How Low-Code Platforms Can Accelerate Digital Process Automation 

Woman looking stock market Data on smart phone Banking

6 Lessons Learned from 6 Years of Using Bizagi at Stone Coast Fund Services

Intelligent Process Automation

5 Intelligent Process Automation Use Cases to Inspire Your Automation Project

Robotic Process Automation

IPA vs RPA – What’s the Difference?

Use Cases

16 Real-World Business Process Automation Examples That Sparked Success

Digital Process Automation

Why Your Shared Services Center Needs Automation 

Agile & Low Code

Low-code and No-code Platforms: Which Approach Should I Use?

Process Modeling and Mapping

Process Documentation Examples: Tools, Use Cases & more

Agile & Low Code

[Infographic] Low-code vs No-code: What’s the Difference

Agile & Low Code

The Citizen Developer Revolution: How to Enable and Support Developers

Digital Transformation: Technology

What is Hyperautomation and How Could It Help Your Business?

Man wearing headphones working on laptop at desk in empty office Finance Solutions

The Benefits of Audit Automation: Real-Life Examples

Use Cases

AP Automation: Getting Started with Accounts Payable Automation 

Process Modeling and Mapping

Process Mapping vs Process Modeling: What’s the Difference?

Cardboard boxes on a conveyor line in distribution warehouse Use Cases

Automation Success Story from Deutsche Post DHL Group’s Shared Services Hub

Agile & Low Code

Low-Code Automation: The Benefits

Manufacturing

Supply Chain Automation: 4 Benefits it Brings to Your Organization

Infographics

[Infographic] Automate to Innovate in Manufacturing - 3 Essential Strategies

Finance Solutions

What CFOs Really Think About Automation in Finance

Process Modeling and Mapping

What is Process Mapping? Benefits and Examples of Process Maps

Business Analysis and Strategy Digital Process Automation

What is Business Process Automation (BPA)?

Confident smiling businessman using smartphone in office Intelligent Process Automation

Process Automation ROI: How to Calculate Yours

Workspace with Blank Computer Screen Agile & Low Code

What is Low-Code Automation and How Could it Benefit You?

Digital Process Automation

Automation Predictions for 2021 and Beyond

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Process Modeling and Mapping

What is Process Modeling? 6 Essential Questions Answered

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Insurance

Transforming the Insurance Claims Process: Real-Life Examples

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Finance Solutions

5 Reasons for Automating the Procurement Process

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Banking

Loan Origination Automation at AEON Credit Service Asia (ACSA)

Digital Process Automation

3 Ways Process Automation Can Aid Your Business Recovery

HR & Employee Experience

[Infographic] 3 Processes Your HR Department Need to Automate Now

HR & Employee Experience

4 Ways to Deliver Change Management for Process Automation

Depressed frustrated trader tired of overwork or stressed by bankruptcy, sad shocked investor desperate about financial crisis or money loss, upset businessman having headache massaging nose bridge Business Continuity

4 Technology Priorities for Enterprises Preparing for Economic Downturn

Digital Transformation: Technology

The Building Blocks You Need for Digital Transformation

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Robotic Process Automation

How to Use Bizagi and RPA to Achieve True Digital Process Automation

Insurance

5 Insurance Processes Transformed by Digital Process Automation

Insurance

Insurance Peer Review Just Got Easier, Thanks to Process Automation

Governance & Compliance

5 Governance, Risk and Compliance Automation Templates You Can Use Right Now

Manufacturing

Smart Manufacturing: How Geesinknorba Increased Production Efficiency by 45%

Insurance

4 Important Wins from Digital Transformation in Insurance

Banking

Intelligent Process Automation: Bizagi and RPA in Action at Bancolombia

Banking

3 Ways Bizagi Transforms Wealth Management Organizations

Insurance

Tackling the Frankenstack: Legacy IT Evolution for Insurers

Digital Transformation: Strategy

Digital Transformation Strategy: Get it Right & Become a Digital Master

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Healthcare

3 Ways to Ensure Data Security in Healthcare

Customer Experience & Engagement

The Customer Journey: How to Capitalize on Critical Moments

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Healthcare

Telemedicine: Meet Customer Expectations in Healthcare with AI

Digital Transformation: Strategy

[Infographic] 3 Ways to Tackle the Tensions Around Digital Transformation

CREATOR: gd-jpeg v1.0 (using IJG JPEG v80), quality = 82
Insurance

Rescue Insurance Policy Administration with AI & Process Automation

Governance & Compliance

[Infographic] 4 Ways to Reduce Risk & Keep Your Business Compliant

Insurance

Insurance Claims Process: Don’t Leave Your Customers Waiting

Digital Transformation: Strategy

Digital Operations: Transform your Business in 6 Simple Steps

Customer Experience & Engagement

[Infographic] 3 Ways to Transform Your Customer Engagement Strategy

Insurance

Customer Experience in Insurance: How to Accelerate the Digital Transformation

Customer Experience & Engagement

Contextualization: The New Rules of Customer Engagement

Governance & Compliance

Governance and Compliance: Mitigate Risk in 6 Simple Steps

Insurance

Insurance Onboarding: The Key to Lasting Customer Relationships

Insurance

[Infographic] 5 Steps to Digitally Transform Your Insurance Company

Governance & Compliance

Why Agility is The Key to Regulatory Compliance

Use Cases

Lotus Notes Migration: Modernizing Your Applications with Bizagi

Banking

Blockchain: The Fuel to Energize Your Financial Services Transformation