Fraud is a five-letter word that has cost millions in a person’s finances, and it has become easier to be caught out if you are not careful. Unfortunately, it has not become better, and in fact, it might have become worse because getting someone’s details using the internet has made it easier. Fortunately, bank companies have moved on from simply learning from mistakes and hoping that all the precautions made from it is enough to push the back.
Credit card companies are leading the charge in the prevention of fraud in the financial sector, according to David Stewart, banking industry director for SAS Fraud and Security Intelligence, and they are doing so by predictive algorithms and machine learning. It takes into consideration how individuals are spending and moving their money, and as soon as they see any abnormality, they will question the authenticity of the transaction.
Sometimes, they also base it on how much you are spending, and if you are a businessman, to have your transactions blocked is the last thing you want to happen especially after you go through all the effort of getting stands designers in Orlando.
Across Europe and the United States, financial firms and businesses has spent at least $108 billion just to prevent this issue from happening.
Money laundering, if you must know, is the suspicious movement of money across different banks. More often than not, this involves banks that are foreign to the point of origin, and this is a crime. That is why, close monitoring of money movement is necessary. When suspicious activity is observed, an investigation can immediately be made.
According to David Stewart, they have clients that not only monitors transactions made by an account but also keeps track of their activity over a certain period.
Ian Holmes, however, admits that monitoring these is not exact science especially that a lot of data needs to be assessed. In fact, Stewart corroborates this by mentioning how their clients have been trying to minimize their false positives from 99 episodes a year down to 50.
OUTSMART THE HACKERS
The internet and the various forms of electronic devices have become a necessary part of the business. In fact, this has become the main form of communication among colleagues, regardless of position, and that is why it has become easier for hackers to take over commercial accounts.
From what Mr. Stewart said, more often than not, they assume the role of a privileged senior official, and then ask for money to be moved to countries which do not have as strict of a precaution as others. In addition, they normally target small-scale to medium-scale businesses who might still be oblivious to such schemes.
Employees with grievances can also cause so much trouble such as leaking important data to the public or introduce malware that could crash your company’s system – both detrimental to the company in general, even more so than money stolen.
The business and finance industry have enjoyed the convenience that advances in technology has provided, but it comes at a cost. Fortunately, security also caught up, now all we have to do is be vigilant.