HOW ANALYTICS CAN HELP PREVENT DIGITAL BANKING FRAUD

Banking fraud is constantly evolving, and even as financial institutions implement remediation measures, new
threats can arise. This means stagnant, traditional systems for preventing banking fraud can’t keep up.
Fortunately, ample data is available to banks and can be used to detect and predict financial fraud and adjust to
new digital banking threats.

Though collecting usernames and passwords used to be sufficient for guarding against fraudulent activity, now
other data can be used to determine whether the customer or the transaction is legitimate, including the device,
whether the device has been registered with the bank previously, whether the transaction is typical and whether
the user can verify their identity via a fingerprint.

Banks need reliable systems that can accurately distinguish between legal and illegal transactions to better
prevent digital banking fraud. Streamlined cyber intelligence software with a variety of tools like intelligent
forms and mobile capabilities can make fraud cases easier to navigate. With analytics from that software, your
bank can:
FIND PATTERNS
Customers’ financial transactions like check deposits or bank withdrawals follow certain patterns that data
analytics can help identify. With data analytics, you can analyze trends and compare them against indicators of
fraud.

Analytics can study several transactions across customers and identify patterns. While sensitive information like
a customer’s Social Security number, what street they grew up on or their mother’s maiden name may be
vulnerable to theft and hacking, behaviors are more difficult to replicate or steal with precision.

For instance, if an unusually large transfer is made, the account may be flagged for investigation. Additionally,
if typing and mouse movements suddenly deviate, a behavioral analytics system may flag this as potentially
fraudulent activity. The software may even collect data on how a legitimate customer typically moves the
mouse when the cursor disappears. When fraud is suspected, the software can make the cursor disappear to
verify whether the user is legitimate based on their reaction.

Even a customer’s age can help indicate fraudulent activity. The speed at which a user types, moves the cursor
across the screen and clicks the mouse slows as they age, so an older user who is suddenly typing with the speed
of a younger person may result in a fraud flag.

Distinguishing between legitimate transactions and banking fraud relies on finding patterns that indicate illegal
activity. For example, a legitimate customer may quickly type their Social Security number and name but will
take more time to fill out their bank account number. A fraudster, on the other hand, may demonstrate the
opposite behavior. Banking fraud patterns should be identified while the transaction is occurring and flagged in
real time.

Many fraudsters follow familiar patterns of banking fraud. Tax-related scams, for instance, tend to happen
during tax season. Since data analytics can study transaction patterns, it’s essential for flagging signs of fraud
and helping to prevent banking fraud.

Make Predictions
Banks collect large amounts of transactional, device and behavioral data. By analyzing this data, the fraud detection
system can help find and prevent financial fraud, but the quality of the analysis depends on the data available. As
long as good data is available, a fraud analytics system can use big data analysis techniques to combat financial
fraud. Predictive analytics specifically examine patterns to make predictions about the potential for future fraud.

With pattern recognition and the ability to identify events that fail to conform to the expected patterns, analysis
algorithms can make predictions by learning from the data.
Digital channel unification — a visual analytics tool — aggregates and monitors transactions automatically for
suspicious activity. Other visual analytics tools include fraud visualization tools that can rapidly identify the
potentially fraudulent transaction’s source and web-based case management that allows fraud analysts to look into
key fraud indicators and review cases.

The examination of a financial fraud event’s causes and consequences, known as forensic analysis, can also be
strengthened by visual analytics data. This data can include IP addresses, locations, devices, relationships and users
associated fraud cases. By analyzing the relationships and data, your financial institution can expose cooperation
between fraudsters and identify potentially fraudulent activity.

Implement Faster Solutions

The costs of banking fraud activity can add up quickly, especially if it lasts for several months. When action is taken
quickly to stop fraudulent activity, the savings for both your bank and your customers can be enormous.
Additionally, you can boost your bank’s reputation because your customers can rest assured that their financial
information is secure. Data analytics is an effective method for quickly detecting fraud due to analytics’ processing
power.

More and more banks are turning to analytics solutions to reduce credit card fraud. Compared to conventional
methods, data analytics can speed up banking fraud detection. Data analytics works in real time, and new techniques
can be learned quickly. Since fraudulent transactions can be flagged in real time, you can catch them and resolve the
issue as fast as possible. Resolving certain kinds of fraud is especially time-consuming, such as account takeover
fraud.

With an analytics platform, your institution can review transactional records around the clock for probable fraud.
This accelerates the resolution process and makes it easier to identify illegal activity that takes place in different time
zones.

Fraud Analytics With Kaseware

Detect and manage fraud with our investigation software. Our platform is a suite of tools to document each step of
crime investigation cases. What makes us unique is that we combine nearly all features that investigators need into
one single platform. Our competitors typically offer one or two of the features we offer.

The value we provide is to combine everything into one place. This can save our clients time that would otherwise
be spent managing multiple products, frustration and often quite a bit of money. Our tools include:
 Case management with autofill smart forms to eliminate duplicate data entry.
 Collaborative tools so you can securely work with your colleagues and even across agencies, which will help
eliminate information silos.
 Search features that allow you to search the “dark web” and social media live in real time directly in the
platform to help research information related to your investigation.
 Many analytic tools to help you visually “connect the dots,” including one of our more popular features, Link
Analysis.
 Automatic visual graphs so you can easily present information to project stakeholders.
 A web portal so you can easily receive and manage tips from the public.
Schedule a free demo today to learn more about us, our support offerings and our incredible product features. Reach
out to us at Kaseware to learn more about how we can help your financial institution detect and prevent fraud.

There are several ways that banks can use predictive analytics to identify and prevent fraud:

1. Analyzing transaction patterns: By analyzing patterns in customer transactions, banks can

identify anomalies that may indicate fraudulent activity. For example, if a customer's
spending habits suddenly change or if they start making unusual purchases, the bank's
predictive analytics system may flag this as potentially fraudulent activity.
2. Identifying suspicious account activity: Predictive analytics can also be used to identify
suspicious activity on an account, such as unusual login attempts or attempts to access
the account from unfamiliar locations.
 3. Detecting fraudulent applications: When a customer applies for a new account or
product, banks can use predictive analytics to identify red flags that may indicate
fraudulent activity. For example, if an application includes false information or is
accompanied by suspicious documents, the bank's predictive analytics system may flag it
as potentially fraudulent.
4. Fraud prevention through machine learning: Machine learning algorithms can be trained
on historical data to identify patterns that are indicative of fraud. These algorithms can
then be used to automatically detect and prevent fraudulent activity in real-time.
Overall, the use of predictive analytics can help banks to proactively identify and prevent fraudulent
activity, improving the security of their systems and protecting their customers.