Finance Monthly - November 2022

victims as fraud continues to evolve, it’s more important than ever for financial organisations to advance their risk management solutions. Helping to prevent fraud The good news is that the advanced security systems now widely being used by banks prevented just under £584 million from being stolen in the first six months of 20221. And financial organisations continue toplay their role inhelping to reduce fraud. In fact, the new study revealed that, on average, financial services providers rely on five external vendors for data sources or solutions to prevent fraud and financial crime across their customer onboarding and lifecycle – with half of these firms (49%) highlighting that having multiple solutions in place helps to increase protection. In addition, UK Finance’s Information and Intelligence Unit2 helped protect over 2.1 million compromised card numbers in 2020. The industry is also working closely with the government on measures to strengthen the fight against fraud and economic crime, including through the Economic Crime Strategic Board jointly chaired by the home secretary and chancellor. However, while financial organisations can only do so much, with social engineering for example an increasingly utilised tactic to trick consumers out of their savings, many banks and the wider finance sector are starting to see risk orchestration as the latest weapon in their armoury to tackle the fraudsters. The move to risk orchestration To address rising levels of risk, the independent research indicated that seven out of ten (69%) finance organisations say they will invest more in technology over the next 12 months, with six in ten (59%) prioritising the emerging concept of financial crime and fraud risk orchestration. Orchestration provides an endto-end solution for customer onboarding and ongoing monitoring, incorporating antimoney laundering screening, transaction monitoring and case management, all within a single platform. It overcomes silos and manual processes to deliver more informed insights that enable quicker and increasingly accurate assessments of risk. Orchestration can help give businesses the flexibility and choice to deploy as many vendors and data sources as needed in their screening and monitoring, without the usual logistical headaches. The research also indicated that the move to risk orchestration is well underway. The majority of respondents (74%) surveyed were already aware of risk orchestration platforms, identifying the main benefits as being: the ability to automatically track customer transactional behaviour over time and flag anomalies (48%); being able to bring all customer £609.8 MILLION was stolen by criminals in the first half of this year through authorised and unauthorised fraud and scams. 43% of financial services organisations expect the cost-of-living crisis to increase the risk of financial crime and fraud over the next 12 months. 30% of financial services organisations believe anti-fraud and financial crime systems are not developing fast enough to keep up with criminal techniques, whilst 32% think fraudsters are spending more time targeting victims. Bank i ng & F i nanc i a l Se r v i ce s 24 Finance Monthly.

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