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The rise and fall of a fraudulent transaction
How a multilayered approach can combat the constantly changing threats from financial fraudsters

Executive summary

The financial services sector has undergone a transformation in the last ten years. Customers no longer need to visit their bank – Internet, mobile, and self-service kiosks including ATMs now provide access to services at all times. Whilst cash and cheques still have their place, credit and debit cards are universally accepted, and the mobile phone is moving to take its place as a popular way to pay.

Whilst this evolution has opened up much wider access to financial services, the shift to online banking, e-commerce and mobile wallets has also presented a whole new range of opportunities for criminals. Payment fraud is a global issue, as its perpetrators embrace the electronic age and defraud unsuspecting individuals and organisations worldwide.

The cost of fraud is not simply financial loss. Financial institutions have to bear a number of hidden costs, including loss of customer confidence and damage to their brand and integrity.

This paper explains how fraud happens by looking at the various types of fraud that are prevalent today, the hidden costs of fraud, and how the criminals gain access to the most valuable of assets – customer data.

We track the rise and fall of a fraudulent transaction and examine the ways in which financial institutions can protect themselves and their customers against becoming just another statistic in the ongoing fight against financial fraud.

The methods and mediums in which fraudsters operate are constantly changing. This means that today there is no single line of defence against fraud. Financial institutions must deploy multiple levels of protection that are layered in structure to provide the best defence possible. The integrated deployment of anti-fraud tools as well as proactive and reactive data management and analysis can be powerful weapons in the prediction, prevention and control of fraudulent behaviours.

To read the full version of the white paper, please download here.

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