The cybercriminals are like viruses: they continually evolve in response to the latest news and trends, creating new versions of known scams. In contrast, fraud related to financial institutions, fintech and banking It has become a constant concern for the most exposed sectors, making the need to adopt increasingly robust and sophisticated security measures critical.
It is therefore essential that companies in the vertical work preventively to avoid, or at least minimize, the potential damage that a fraud event can cause, both to the business matrix and to its reputation. Such is the degree of priority that the information security financial organisations, which are investing heavily in technological infrastructure to prevent cyberattacks, are forced to take great precautions and become extremely demanding with their partners and suppliers when it comes to security.
Data of the Kaspersky Threat Landscape for Latin America 2023 indicate that, with the restart of economic activity and the support of AI, phishing has increased sixfold in the region. At the same time, A 50% increase in banking Trojan attacks was detected, which equates to 5 attacks per minute.
In Argentina, according to the Cybercrime and Digital Evidence Observatory in Criminal Investigations of the Austral University (OCEDIC), during 2023, complaints of virtual scams doubled compared to the previous year. In addition, around 4,800 frauds were recorded per month, on average.
“The strength of a company depends directly on its security and that of all its suppliers. Within the sector, banks, fintechs and non-banking financial institutions can face significant risks if a single supplier does not adequately protect their information. There are solutions that allow these entities to streamline processes without compromising data security. Decision engines, for example, analyze and execute risk policies in seconds, allowing for a more precise assessment of risk along with more effective detection of possible fraud,” he says. Alberto Teszkiewicz, Development and Research Coordinator at SIISA.
Cybersecurity: What does prevention 4.0 mean?
The artificial intelligence is essential in identifying suspicious patterns and behaviors. Within these decision engines, there is the potential to incorporate AI models that can detect fraudulent activity in real time and, even more importantly, learn and adapt as fraud tactics evolve. This ability to constantly adapt further strengthens the ability to sustain and prevent a credit scam.
As a result, by implementing suitable solutions fraud detectionPowered by this technology, banking and financial institutions can greatly improve their capabilities to detect fraud and bad practices, strengthen their reputation in the market and with customers, and prevent financial losses before they happen.
Powered by algorithms, decision engines analyze multiple data sources in real time, including credit history information – even at non-bank financial institutions such as Retails or fintechs-; as well as payment behavior, among others, to evaluate the potential of those who request a financial product.
“The key advantage of this technology lies in its ability to identify patterns and anomalies that could go unnoticed by traditional methods”the specialist stressed.
The next step: “financial portability”
The trend in terms of Security is “financial portability”an action that will make it easier for people, micro and small businesses to change from one financial institution to another that offers them better conditions, reducing the time and costs involved in this process.
Transferring a payroll account is a right of any person, so they may request the bank where their deposits are located to transfer, free of charge, the balance of that account to the bank of their choice.
“In this new scenario, decision engines not only operate more accurately, but also at a faster speed. Real-time fraud detection is carried out with a high rate of accuracy, thereby retaining customers and ensuring exceptional user experiences, minimizing fraudulent operations and reducing operational losses.”concluded the coordinator of Development and Research at SIISA.
Source: Ambito
