Fraud is really a million-pound trouble with one in fifteen people falling victim each year, which makes it one of the most common crimes in the united kingdom. To combat financial crime, the continues to be investing heavily in its home security system, fraud prevention initiatives and technology. However, the financial criminals are continuously adapting their methods and the battle against fraud rages on. Actually, according to UK Finance, unauthorised financial fraud losses across payment cards, remote banking and cheques totalled almost lb800 million in 2022. It should be no real surprise then that the way financial organisations assess and manage risk needs to change.
Technology can be a double-edged sword when it comes to mitigating financial fraud. When technology evolves, criminals use increasingly sophisticated methods to carry out attacks. Therefore, organisations must take an all natural approach to protecting themselves by taking a closer look at improving their processes, using data more effectively and harnessing a combination of artificial intelligence technologies safe and secure. Only by wielding these weapons can businesses win the battle against financial crime.
In an effort to combat financial fraud, businesses will need to take a holistic, AI powered approach – but exactly what does this involve?
Turning data insight to impact
Financial services really are a data heavy industry. From structured, unstructured, transactional and account-level, it's clear that there is an abundance from it. While this data brings benefits when it comes to consumer insights, in the hands of nefarious actors, it will make fraud more pervasive. It's true that initiatives like General Data Protection Regulation have certainly ramped in the regulation of consumer data, but there's still an enormous chance to uncover insights using the data to create more benefits to the financial organisation.
In the finance industry, developing trust and customer loyalty are incredibly important, and that's why fraud can be detrimental for their reputation, and result in added cost. By collecting the information from fraud, anti-money laundering , and cybersecurity, financial organisations can consolidate information across historically isolated functions and make more informed decisions with a holistic look at risk.
360-degree view to fraud prevention
Before financial organisations look toward technology to mitigate financial fraud, there aren't many steps they must take to ensure they are building success out from these investments. First banking institutions need to be in a position to find out the bottlenecks and blind spots in their business processes, to see which areas need to be improved and where automation will be needed. With process intelligence organisations can analyse less structured processes, identify opportunities for improvement, and increase both speed and accuracy of executing said processes. With this holistic approach, financial institutions can collect and analyse intelligence from over the organisation. This model improves intelligence sharing across the industry and allows banking institutions to continuously test and enhance their security playbooks.
Once there is a 360-degree overview of their business processes, the very best place to start automating may be the onboarding process. Streamlining onboarding by leveraging modern technologies enables banking institutions to filter out fraudulent actors and deliver a more frictionless experience for their customers. Utilizing a mixture of technologies, for instance artificial intelligence , robotic process automation , and natural language processing , can enable financial institutions to process both structured and unstructured documents, minimise manual steps, and lower the need for making redundant requests of the client. Establishing an effective client onboarding process not only enables faster detection of potential fraud but plays a significant role in developing relationships with new clients.
One thing is for sure, a holistic strategy offers the visibility necessary to better get ready for auditing and compliance requirements. It improves efficiency, protects the company and reputation, and protects against sanctions or fines. There's greater protection against id theft and fraud from the customer perspective, and much less security incidents increase uptime, allowing customers seamless use of their financial lives.
AI is powering the future of finance
Artificial intelligence has taken the planet by storm and the financial services sector is no different. Investing in the best AI technologies can easily see the reap the benefits of a more secure and efficient organisation.