Why is fraud persisting, growing even?


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Banking customer engagement improves with multi-channel innovative solutions with sub second response rate. But additional value, faster payments brings additional risk.Most sophisticated frauds occur across channels but most toolsets are channel focused. Read on to learn how to combat cross-channel and cross-product fraud.

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Why is fraud persisting, growing even?

  1. 1. Why is fraud persisting, growing even?. SBI floats proposal for real-time EFM . RBI recommends real-time fraud detection.. CustomerXPs Software Private Limited query@customerxps.com http://www.customerxps.com8/7/2012 1
  2. 2. BANKER’S DAILYwww.customerxps.com/clari5.html - Preventing fraud since 2006Fraud is here and how! Did you know?According to India banking fraud RBI recommends remedial measures- Fraud mitigation strategiessurvey report released by Deloitte in including all aspects of fraud control viz Detection, Investigation, DeterrenceFeb 2012. Over the last year alone & Prevention.• 93% indicated that there has been “…implement Fraud Detection Systems RBI an increase in fraud incidents Advices and Authorization Systems with Real• 1 in 2 institutions had Banks time intervention capability…” encountered more than 50 to… incidents of fraud Maintain database of negative profiles• 1 in every 4 institutions have including applicants, customers, vendors etc. witnessed at least 100+ fraud Detection basis Monitoring of customer incidents authentication transactions • Average loss per incident > 10 lac • Average value of recovery < 25% of Fraud loss
  3. 3. Date: Today FRAUD exposéWHY IS FRAUD PERSISTING, “You need to much on customerGROWING EVEN? spend money to education and manual Banking customer engagement improves with multi- save money.” processes, rather than on channel innovative solutions with sub second Current fraud remediation automated fraud-detection methods are not strategic response rate processes and workflow," or scalable Litan, Gartner VP, says. 76% banks believe customer "You need to spend money and employee education is to save money." the best way to fight fraud. But industry analysts beg to Do you agree? Mail your views to differ. "They are relying too query@customerxps.com THE ENEMY IN MUFTI IS CROSS-CHANNEL FRAUD –But additional value, faster payments brings why current toolsets failadditional risk… miserably. Most sophisticated frauds occur across channels but mostComing up… Analysts speak up against conventionalwisdom toolsets are channel focused.Tubin from Tower Group says. "When they(banks) do see fraud, they see the end result, such as check fraud, and classify it as a fraud that occurred that way," rather than working their way back to follow the trail.
  4. 4. Date today 00/00/00 NEWS Who bought in? f. The software solution should have its own SBI floats management console to proposal for real- monitor the administration of the software. time fraud mgmt: g. Fraud Monitoring / Details below Prevention Software should a. Real-time Automated comprise of various Transaction Scanning / management levels like Monitoring Software / Tool prevention, detection, for preventing frauds investigation and correction. b. On the basis of defined h. It should not pose any risk set of rules, defined risks to normal IT operations in and set scores CBS. c. Raises alerts to the i. Central repository of fraud Branch Manager with types and should have minimal disruption flexibility to make any changes later in the rules d. Software should comply and fraud preventionAre some of your latest initiatives putting your with regulations and should strategies.customers and sometimes, employees at risk? Learn judge high risk transactions based on transaction pattern j. Parameterised reviewhow a very large Private Bank is creating better options to define set of rules from historical data.experiences for its customers and employees! Reach and scores as when e. The software shouldout for the best-of-breed…… required. maintain database of all such fraudulent transactions So what’s your next and alerts for analysis and move… let us know!Beware: Ad space reporting in future. query@customerxps.com
  5. 5. How Clari5 can help CustomerXPs Clari5 is a real-time intelligent solution with solutions in key areas of Customer Experience Management(CEM) and Enterprise Fraud Management(EFM)  Clari5 gives Bankers the ammunition to connect with customers and create experiences that are fulfilling and consistent for customers and employees  Coupled with bleeding-edge real-time capability, the software is capable of enabling relevant, contextual intelligence extending from conversational interactions in the front office to preventing frauds at the back office instantly Clari5 Enterprise Fraud Management  is a Customer aware solution that monitors 360 degrees digesting all transactions and actions  Silo Breaker solution that combats sophisticated cross channel, cross product fraud with real- time, actionable insights  Employs intelligent models based on neural network, time series and complex analytics to deliver insights
  6. 6. Call +91-80-3221 8294 Mail query@customerxps.com Visit http://www.customerxps.com8/7/2012 6