Latin America. For banks, insurers and online stores there are great challenges, since most technologies are rigid, so the rules for fraud detection of each business are changing as new technologies emerge.
There is digital evidence, there are structured and unstructured records and data that can be the key elements to identify fraud patterns and we must take advantage of them. For example, a pattern of fraud in financial organizations is the multiple transactions of different amounts from a single origin, that is why the geographical positioning of the transactions must be taken into account, the consultation of multiple accounts from the same origin, the assignment of credits or loans to users with a low profile at the credit level.
The development of new technologies opens up a wider field of action for fraud to occur. There is greater access of people in different geographical points; now they must not only worry about the protection of internal and physical elements in the organization, but also take into account the variable of technology and the increase in points of attack. Frauds are becoming more and more specialized, difficult to understand and to tackle.
What would be the solution to detect fraud?
Companies have information with a large volume of content that must be processed through the implementation of technologies that are part of the cycle and fraud detection. There are two very important variables: users; your identification, credit cards, electronic wallets, discount cards, etc. and the communication channels to make transactions: ATMs, web applications, terminals, points of sale, among others. All this information will go to a multichannel application that is responsible for making all transactions.
Big Data will allow us to process, analyze, collect, normalize information and give us the ability to understand patterns and behavioral profiles. If within this processed information, there is a suspicious movement detected by the risk management unit, it is immediately evaluated to see if it is indeed a fraud or a validated movement.
In certain organizations this has already changed. Companies already have tools for fraud detection, whether they change or block the credit card almost immediately, send an alert when an unusual purchase is made abroad or that the system does not recognize. But how quickly and reliably? How much is our business losing by stopping a transaction?
These processes must be automated to understand their customers, users and their business environment, in order to act in the shortest possible time and have better reliability.
Some recommendations
Entrepreneurs in the banking and financial sector face daily challenges in their transactional technology platforms of online shopping and payments, which are at high risk of cyberattacks and fraudulent movements. That is why I make some recommendations to provide an improved security system to your company.
1. Know the organization. Know the normal operation of the company, what are the normal models and processes of the day to day. For example, number of transactions and behaviors that are within the normal range.
2. Integrate all the information within a platform that is not rigid, that allows to be flexible, have multiple connectors, have expansion techniques and obtain information. Carry the greatest amount of information where these contents are processed in the organization.
3. Have defined security parameters within the organization. Having a fraud prevention posture involves developing a security protocol manual within the business. For example, the process has an alert A and B, if the intermediate process fails, another process C is performed.
4. Have a user profile. This will allow you to identify trends and purchase amounts, if you buy more in certain periods of time, if these purchase amounts are normal in the user, etc. This generates a greater alert and response to certain fraud processes with a greater range of coverage.
5. Technology has to adapt to the business, not my business to the technology. Today's organizations have to adapt to customers to have a better economic performance, if it works vice versa the ability to control is lost. Technological prevention processes must be established for efficient action.
By Israel Gutiérrez Barreto, Director of Latin American Operations at A3SEC.
