New Threats? No Problem! Identify Emerging Cybercrime Trends Early to Fight Financial Fraud

Every year, cyberattacks become more sophisticated, new malware emerges and fraud losses rise. Have you ever looked at your banking information to see a transaction that you didn’t make? Have you ever checked your credit report to find cards you never signed up for or high balances you didn’t create? Unfortunately, financial fraud is an issue many people are forced to deal with in their lives.

Nipping Emerging Cybercrime Trends in the Bud

Banks do their best to stay ahead of the threat, and constantly battle many forms of cybercrime and fraud. Despite these efforts, an IBM Institute for Business Value (IBV) survey of 500 banking and financial market executives found that 66 percent of organizations cannot detect fraud until after the money moves. In fact, nearly one-third learn of fraud only when customers dispute transactions.

At the same time, banks must keep up to date with new policy requirements and regulations. Economic growth has decelerated in the last 10 years, yet we have seen an increase in regulatory frameworks.

Read the white paper: Stopping Fraud, Not Productivity

Innovation, however has not slowed down. Banks must stay competitive and meet the demands of their customers by adopting the latest forms of technology without compromising the user experience. As technology evolves and more people access their bank accounts from multiple devices, financial institutions must adjust the methods by which they identify suspicious activities, and comply with both new and existing legislation.

A Dynamic Fraud Prevention Strategy

Compliance and risk teams are constantly reviewing policies, monitoring and testing systems, undergoing audits, training employees, and much more. This must all be done without impacting the customer. With so much on their plates, are banks really agile enough to spot risks, enforce compliance and stop fraud?

A dynamic strategy to identify emerging cybercrime trends and financial fraud risks requires certain components.

  • Sufficient risk indicators: When a fraud analyst has the right mix of risk information from new and old fraud schemes, he or she can generate fewer false positives and detect suspicious activities more accurately.
  • Control to implement new policies: With an easier ways to create, test and implement new rules or policies, analysts can conduct fraud prevention processes faster.
  • A manageable fraud prevention platform: Organizations need to focus on stopping fraud, not managing fraud platforms. Security teams can address this issue and reduce operational hassles by simplifying platform and cloud management.
  • Machine learning: Automated solutions enable fraud analysts to stay ahead of threats and work smarter, not harder.

A Cognitive Touch

Analysts need visibility and control to test, build and deploy countermeasures to fraud. IBM’s cognitive technologies are designed to help you protect your network on an ongoing basis and stay ahead of emerging threats.

IBM Trusteer Pinpoint Detect uses machine learning and advanced analytics capabilities to digest and understand data, which helps security teams predict rules and adapt risk models. The new policy engine capability offers a “white box” approach that provides greater visibility, makes it easier to adapt to threats and simplifies deployment of security solutions.

A fraud detection strategy that includes dynamic risk indicators, machine learning capabilities, proficient methods to implement new rules and policies, and a manageable platform can help organizations minimize false positives, increase work productivity, and swiftly identify emerging cybercrime trends and fraud risks.

To learn more, register for the live webinar, “Adapt Faster to New Threats,” scheduled for June 29 at 11 a.m. EDT/5 p.m CET.

Read the white paper: Stopping Fraud, Not Productivity

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Brooke Satti Charles

Financial Crime Prevention Strategist, IBM Security

Brooke Satti Charles is a Financial Crime Prevention Strategist within IBM Security. Her career has been focused on research and reporting of fraud, money laundering, insurance, terrorist financing, conflicts management, enterprise risk assessments, and regulatory compliance. Brooke holds a Bachelor of Science in Communication and Media Studies from Northeastern University and is currently working to achieve her Masters in Intelligence Studies.