Big data and machine learning analytics can help banks and insurers combat fraud and reduce losses from hacking. Techniques like anomaly detection can flag suspicious transactions to identify issues before they become major problems. While not a perfect solution, these tools provide insights and alerts that go beyond traditional methods. Their use can decrease fraud incidents and strengthen organizations' technological defenses, but hacking will still remain an ongoing challenge given human factors and hackers' continuing innovation.
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
The FBI is the lead federal agency for investigating malicious cyber activity by criminals, nation-state adversaries, and terrorists. To fulfill this mission, the FBI often develops resources to enhance operations and collaboration. One such resource is the FBI’s Internet Crime Complaint Center (IC3) which provides the public with a trustworthy and convenient mechanism for reporting information concerning suspected Internet-facilitated criminal activity. At the end of every year, the IC3 collates information collected into an annual report.
Credit is due to all original authors and no financial gain was made from the blog, Simply sharing an interesting story for educational purposes,
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Dear Delegates,
Corporate fraud costs businesses hundreds of millions of dollars each year. It affects livelihoods and is a common
cause of corporate failure. It is the responsibility of the board of directors to prevent fraud by putting in places the
appropriate controls and review procedures. This program shows you why Accounting Information System (AIS)
Threats are ever increasing. Control risks have also increased in the last few years because there are computers
and servers everywhere, and information is available to an unprecedented number of workers. Distributed
computer networks make data available to many users, and these networks are harder to control than centralized
mainframe systems. With the introduction of 3 levels of COSO and value driven ERM, things should be under
control. Recent events at SATYAM proves that in reality things are getting out of control. So, what went wrong ?
Is it time to train the auditors ?
Recognising the challenges that organisations are facing in combating Fraud, CSI In Practice is pleased to present
this 2-days Workshop on Enterprise Fraud Risk Management. This will serve as an excellent opportunity to learn how
best to conduct an internal investigation to protect your organization and step up on controls to deter fraud.
Enterprise Fraud Management: How Banks Need to AdaptCapgemini
Fraud prevention is becoming one of the biggest areas of concern for the financial services industry. But first generation Fraud Management systems are falling short. By moving towards more enterprise approach to fraud management, financial institutions can combat the increasingly treacherous fraud and cyber crime landscape while reaping numerous benefits for the organization.
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The papers for publication in The International Journal of Engineering& Science are selected through rigorous peer reviews to ensure originality, timeliness, relevance, and readability.
The FBI is the lead federal agency for investigating malicious cyber activity by criminals, nation-state adversaries, and terrorists. To fulfill this mission, the FBI often develops resources to enhance operations and collaboration. One such resource is the FBI’s Internet Crime Complaint Center (IC3) which provides the public with a trustworthy and convenient mechanism for reporting information concerning suspected Internet-facilitated criminal activity. At the end of every year, the IC3 collates information collected into an annual report.
Credit is due to all original authors and no financial gain was made from the blog, Simply sharing an interesting story for educational purposes,
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Dear Delegates,
Corporate fraud costs businesses hundreds of millions of dollars each year. It affects livelihoods and is a common
cause of corporate failure. It is the responsibility of the board of directors to prevent fraud by putting in places the
appropriate controls and review procedures. This program shows you why Accounting Information System (AIS)
Threats are ever increasing. Control risks have also increased in the last few years because there are computers
and servers everywhere, and information is available to an unprecedented number of workers. Distributed
computer networks make data available to many users, and these networks are harder to control than centralized
mainframe systems. With the introduction of 3 levels of COSO and value driven ERM, things should be under
control. Recent events at SATYAM proves that in reality things are getting out of control. So, what went wrong ?
Is it time to train the auditors ?
Recognising the challenges that organisations are facing in combating Fraud, CSI In Practice is pleased to present
this 2-days Workshop on Enterprise Fraud Risk Management. This will serve as an excellent opportunity to learn how
best to conduct an internal investigation to protect your organization and step up on controls to deter fraud.
Enterprise Fraud Management: How Banks Need to AdaptCapgemini
Fraud prevention is becoming one of the biggest areas of concern for the financial services industry. But first generation Fraud Management systems are falling short. By moving towards more enterprise approach to fraud management, financial institutions can combat the increasingly treacherous fraud and cyber crime landscape while reaping numerous benefits for the organization.
Find out how to protect your petroleum retail assets from cyber attacks and discover 6 steps to take once you uncover a hack, how to notify data breach victims, what to do if you discover malware, red flags to watch for on social media, and more!
More fraud happens during the holidays. Fraudsters call it the ‘Best Time of the Year’:
Customers purchase more items around the holidays. To keep up with that increased demand, businesses lower their security standards. Fraudsters take advantage of the lessened security to push through more fraudulent purchases, applications for credit and debit, loans, claims, and refunds. What can you - as an individual or a business - do to fight the expected fraud for the 2017 holiday season?
Secure Payments: How Card Issuers and Merchants Can Stay Ahead of FraudstersCognizant
Our latest research reveals that merchants and card issuers should take a layered approach to mitigating risk, by working with consumers to improve fraud detection and prevention.
Faster payments mean higher risk for fraud, especially through Business Email Compromise (BEC). Learn how to prevent fraudulent Wire transfers from identification to intervention.
Fraud continues to proliferate across financial institutions, through multiple lines of business and banking channels. Increasingly sophisticated criminal tactics and the proliferation of organized crime rings make detecting fraud difficult and preventing it nearly impossible. Adding to the complexity is increased globalization and growth through mergers and acquisition, which make it harder to effectively monitor multiple portfolios and business lines. The presentation discussus best practices and ideas around the prevention, investigation, and detection of possible fraudulent activities across multiple industries.
Shufti Pro identified various types of identity frauds in 2020 and as per the available information, businesses can expect an increase in criminal activities this year as well.
Findings from India Fraud Survey 2012: Fraud and Corporate Governance - Chang...EY
A report based on a survey conducted to understand the fraud scenario in India. This study aims to understand how businesses have coped with increasing fraud and corruption risk last year, what the emerging fraud risks in the industry are and the measures taken by various organizations to mitigate these risks.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
This paper was presented at several conferences around the world, it is a few years old, but the concepts, trends and risks identfied in the is paper are still relevant today
company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
FraudDECK includes pre-packaged business workflows for transaction surveillance across ATM & POS channels. It can be extended to facilitate surveillance of fraudulent transactions on other channels like mobile banking or payment transactions like Wire fraud or AML. For more information please visit: http://www.esq.com/transaction-surveillance/
TECH CYBER CRIME: Homegrown menace
Contents
1. Regional trouble
Listen
As Latin Americans take to online banking, Brazil is scoring records for the wrong reasons.
The number of internet users in Latin America has doubled in less than a decade, according to the World Bank. Close to 60% of Brazilians used the internet last year, up from less than 30% in 2006. But as more people log on, they open their personal information to new vulnerabilities.
Last year, cybercrime cost the world economy $445 billion, according to figures from PwC. "The more people recognize money is digital, the more criminality will migrate there," says Tom Kellerman, chief cybersecurity officer at Trend Micro, a software security company.
With 34% of Latin America's population, Brazil has also become LatAm's stomping ground for cybercriminals. The country ranks in the top three launching pads for cyberattacks and at least 75% of Brazilians say they have been victims of cybercrime, according to PwC.
Russia and China have long been home to the originators of cybercrime, but that is changing, says Kellerman. Increasingly, hackers are using home-grown programs. "The Brazilian underground used to be some of the biggest buyers of malware from Eastern Europe, but now they are producing their own," he says.
Financial institutions, energy companies and governments are the top targets for cybercrime in Latin America, says Kellerman, adding that the prevalence and severity of cyberattacks in the region "is dramatically getting worse".
Last year, RSA Research Group uncovered a new malware attacking Brazil's Boletos, a type of payment slip. RSA found that more than 30 Brazilian banks had been targeted. Cybercriminals obtained user login information and used their bank accounts to issue Boletos, which can be printed out or used online.
When a customer gives the slip to a merchant or other person, the bank transfers money from the customer's account. Cybercriminals intercepted the Boletos and redirected the payments to their own accounts. RSA estimated losses to be 8.57 billion reais ($2.2 billion at today's exchange rate).
For the first time, Hewlett Packard and the Ponemon Institute included Brazil in its annual Cost of Cyber Crime Study, published in October. The survey deals with expenses related to theft, lost business and business responses allocated to fight cybercrime. Cybercrime hit US businesses the hardest, costing companies with more than 1,000 employees $15 million each per year on average, the report found.
Brazil ranked fifth, with the 27 companies with over 1,000 employees surveyed reporting average losses of $3.85 million from cyberattacks.
Financial service providers had the most significant losses. The most costly crimes are denial of services attacks, which aim to render a company's service unusable to its clients.
Regional trouble
Although Brazilian financial institutions have taken the brunt of cyberattacks in Latin America, hackers are also hitting other Latin Ame.
Find out how to protect your petroleum retail assets from cyber attacks and discover 6 steps to take once you uncover a hack, how to notify data breach victims, what to do if you discover malware, red flags to watch for on social media, and more!
More fraud happens during the holidays. Fraudsters call it the ‘Best Time of the Year’:
Customers purchase more items around the holidays. To keep up with that increased demand, businesses lower their security standards. Fraudsters take advantage of the lessened security to push through more fraudulent purchases, applications for credit and debit, loans, claims, and refunds. What can you - as an individual or a business - do to fight the expected fraud for the 2017 holiday season?
Secure Payments: How Card Issuers and Merchants Can Stay Ahead of FraudstersCognizant
Our latest research reveals that merchants and card issuers should take a layered approach to mitigating risk, by working with consumers to improve fraud detection and prevention.
Faster payments mean higher risk for fraud, especially through Business Email Compromise (BEC). Learn how to prevent fraudulent Wire transfers from identification to intervention.
Fraud continues to proliferate across financial institutions, through multiple lines of business and banking channels. Increasingly sophisticated criminal tactics and the proliferation of organized crime rings make detecting fraud difficult and preventing it nearly impossible. Adding to the complexity is increased globalization and growth through mergers and acquisition, which make it harder to effectively monitor multiple portfolios and business lines. The presentation discussus best practices and ideas around the prevention, investigation, and detection of possible fraudulent activities across multiple industries.
Shufti Pro identified various types of identity frauds in 2020 and as per the available information, businesses can expect an increase in criminal activities this year as well.
Findings from India Fraud Survey 2012: Fraud and Corporate Governance - Chang...EY
A report based on a survey conducted to understand the fraud scenario in India. This study aims to understand how businesses have coped with increasing fraud and corruption risk last year, what the emerging fraud risks in the industry are and the measures taken by various organizations to mitigate these risks.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
This paper was presented at several conferences around the world, it is a few years old, but the concepts, trends and risks identfied in the is paper are still relevant today
company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
FraudDECK includes pre-packaged business workflows for transaction surveillance across ATM & POS channels. It can be extended to facilitate surveillance of fraudulent transactions on other channels like mobile banking or payment transactions like Wire fraud or AML. For more information please visit: http://www.esq.com/transaction-surveillance/
TECH CYBER CRIME: Homegrown menace
Contents
1. Regional trouble
Listen
As Latin Americans take to online banking, Brazil is scoring records for the wrong reasons.
The number of internet users in Latin America has doubled in less than a decade, according to the World Bank. Close to 60% of Brazilians used the internet last year, up from less than 30% in 2006. But as more people log on, they open their personal information to new vulnerabilities.
Last year, cybercrime cost the world economy $445 billion, according to figures from PwC. "The more people recognize money is digital, the more criminality will migrate there," says Tom Kellerman, chief cybersecurity officer at Trend Micro, a software security company.
With 34% of Latin America's population, Brazil has also become LatAm's stomping ground for cybercriminals. The country ranks in the top three launching pads for cyberattacks and at least 75% of Brazilians say they have been victims of cybercrime, according to PwC.
Russia and China have long been home to the originators of cybercrime, but that is changing, says Kellerman. Increasingly, hackers are using home-grown programs. "The Brazilian underground used to be some of the biggest buyers of malware from Eastern Europe, but now they are producing their own," he says.
Financial institutions, energy companies and governments are the top targets for cybercrime in Latin America, says Kellerman, adding that the prevalence and severity of cyberattacks in the region "is dramatically getting worse".
Last year, RSA Research Group uncovered a new malware attacking Brazil's Boletos, a type of payment slip. RSA found that more than 30 Brazilian banks had been targeted. Cybercriminals obtained user login information and used their bank accounts to issue Boletos, which can be printed out or used online.
When a customer gives the slip to a merchant or other person, the bank transfers money from the customer's account. Cybercriminals intercepted the Boletos and redirected the payments to their own accounts. RSA estimated losses to be 8.57 billion reais ($2.2 billion at today's exchange rate).
For the first time, Hewlett Packard and the Ponemon Institute included Brazil in its annual Cost of Cyber Crime Study, published in October. The survey deals with expenses related to theft, lost business and business responses allocated to fight cybercrime. Cybercrime hit US businesses the hardest, costing companies with more than 1,000 employees $15 million each per year on average, the report found.
Brazil ranked fifth, with the 27 companies with over 1,000 employees surveyed reporting average losses of $3.85 million from cyberattacks.
Financial service providers had the most significant losses. The most costly crimes are denial of services attacks, which aim to render a company's service unusable to its clients.
Regional trouble
Although Brazilian financial institutions have taken the brunt of cyberattacks in Latin America, hackers are also hitting other Latin Ame.
The pandemic has left an indelible mark on the banking industry, catalyzing a rapid shift towards digital transformation the way banks operate. This transformation has brought about both challenges and opportunities, prompting experts to offer nuanced opinions on the impact of increased online services and its ripple effects on traditional and digital banking.
Not Prepared for Hacks
U.S. News & World Report Weekly.
(May 30, 2014):
From Educators Reference Complete.
Copyright:
COPYRIGHT 2014 U.S. News and World Report, L.P.. All rights reserved.
http://www.usnews.com/
Full Text:
Data breaches are up and businesses aren't ready to deal with them
By Tom Risen
Hacking increased so much this past year that approximately half of U.S.
adults had their information stolen and less than half of U.S. companies have
taken enough precautions to protect consumer data, according to two studies
released this week.
Recent months have been filled with reports about hackers stealing credit
card data, online account passwords and other personal information from
consumers. These included data breaches of networks at retailers like Target
and Michaels, along with the Heartbleed security bug that made software
vulnerable to spying and online theft. Last week, in one of the latest major
security incidents, eBay urged its users to change their passwords
"because of a cyberattack that compromised a database containing
encrypted passwords and other non-financial data."
Approximately 110 million people, or 47 percent of adults, in the United
States have had their personal information exposed by such attacks, according
to a new study from CNNMoney and cybersecurity research firm the Ponemon
Institute. Attacks will likely become more frequent as Internet and mobile
device use grows, the report cautioned.
To make matters worse, companies are lagging behind trying to protect
themselves, according to PricewaterhouseCoopers' 2014 U.S. State of
Cybercrime Survey published Wednesday. Less than half of companies in the
survey took necessary steps to protect themselves. Only 38 percent
prioritized security investments based on the risks to their businesses, and
only 31 percent have a security strategy for the rapidly growing mobile
sector.
Businesses are unprepared in part because of poor cybersecurity training at
colleges, says Alan Paller, co-chair of the U.S. Department of Homeland
Security's Task Force on CyberSkills, which advises how to train
cybersecurity professionals. Security training was not provided for new
employees at 54 percent of the businesses in the PricewaterhouseCoopers
survey. "Colleges are creating people who can tell you about security
but they cannot fix the system," says Paller, founder of the SANS
Institute cybersecurity training organization.
Many cybersecurity specialists with practical computer expertise "are
not coming out of academia," Paller adds. Rather, "they are a lot
of self ...
Running head HOW TO AVOID INTERNET SCAMS AT THE WORKPLACE 1 .docxwlynn1
Running head: HOW TO AVOID INTERNET SCAMS AT THE WORKPLACE 1
How to avoid internet scams at the workplace
Christophe Bassono
CIST3000: Advanced Composition IS&T
Amanda L. Gutierrez, M.S. & M.A.
UNO-Fall 2018
HOW TO AVOID INTERNET SCAMS AT THE WORKPLACE 2
Online Fraud: How to Avoid Internet Scams in the Workplace
This section outlines how the researcher envisions presenting the report. The outline
demonstrates the different sections in which the report will be broken into and the
information that will be contained in each section
Introduction
Definition
Online fraud refers to deceitful schemes that are done using the internet. Online fraud may
come in the form of financial theft, identity theft or a combination of both.
History of Online Fraud
An influx of online fraud began to be experienced in the 1990s with the increased technology
use and e-commerce. In the beginning, online fraud was done by using the names of famous
celebrities of the time to commit internet crimes. Over time, more technical and sophisticated
plans were developed such as creating card-generator applications with real credit card
numbers, setting up dummy merchant websites and mass identity theft. Today, despite
attempts by various governments to regulate and mitigate online fraud, more sophisticated
online fraud schemes have been established ranging from credit card fraud to phishing,
hacking, and identity theft (Saeger & Probert, 2015).
In the recent past, computer fraud has evolved through a series of advancements outplaying
the traditional security defenses such as the two-factor authentication, antivirus, and SSL
encryption in the process. Zeus and SpyEye are the most common attack tools used by
hackers since they support the gathering of vast volumes of extremely sensitive
authentication data. It has been established that no single application is immune to attacks
and the malicious attackers are focusing more on online banking accounts because they offer
HOW TO AVOID INTERNET SCAMS AT THE WORKPLACE 3
most direct payoff. Online fraud is based on three core technologies: the botnet controllers
capable of handling hundreds of thousands of bots, highly effective data collection, and
sophisticated Trojans that are updateable.
Form grabbing for PCs running IE/Windows has been a simplified approach for fraud. The
technique helps attackers to extract data within browsers. The deployment of form grabbing
on compromised PCs allowed hackers to obtain numerous numbers of online bank account
IDs and passwords. The password-based authentication was termed no longer safe for online
banking prompting the introduction of two-factor authentication (Mellinger, 2011).
Nevertheless, criminals still found the loophole that helps them to challenge the security of
two-factor authentication through web injects. Malicious attackers that promote online fraud
have created various techniques.
Over the last several years, financial institutions have spent billions of dollars and resources securing a perimeter defense system consisting of intrusion detection, intrusion prevention, firewalls, user authentication, and other layers of security all built to secure their financial systems. Due to the exponential increase in internal and external information security incidents, these investments are necessary to protect an institution’s reputation and revenue. In addition, the federal government is using regulatory means to ensure the banks
take responsibility for potential losses.
Of equal or even greater threat, however, are the social aspects of the Internet that cannot
be controlled. For example, financial institutions need to be aware of the reputational risk that is inherent on the Internet. Each institution needs to do more than reactively protect its data; it must also proactively safeguard its reputation online, where references to its corporate name alone can number in the millions. An institution must also guard against infringements against its logo, its trademarks or other graphic representations. This risk, outside the firewall, is the other side of the coin.
Leveraging Analytics to Combat Digital Fraud in Financial OrganizationsRicardo Ponce
Digitization creates major opportunities for financial services – automating operations, expanding channels, delivering engaging customer experiences. There are corresponding
challenges – unprecedented data and transaction volumes, channel control in electronic marketplaces, and preventing fraud when the fraudsters are technologically adept. To discuss the opportunities, challenges, and solutions around financial fraud in the digital age, IIA spoke with David Stewart, Director, Security Intelligence Practice-Banking at SAS Institute Inc.
Accenture re-organizing-todays-cyber-threatsLapman Lee ✔
Banks are facing an urgent need to bring fraud risk management and IT security—two historic silos—more closely together to combat mounting data security and cyber threats.
Similar to Big data analytical driven fraud detection for finance; banks and insurance (20)
Levelwise PageRank with Loop-Based Dead End Handling Strategy : SHORT REPORT ...Subhajit Sahu
Abstract — Levelwise PageRank is an alternative method of PageRank computation which decomposes the input graph into a directed acyclic block-graph of strongly connected components, and processes them in topological order, one level at a time. This enables calculation for ranks in a distributed fashion without per-iteration communication, unlike the standard method where all vertices are processed in each iteration. It however comes with a precondition of the absence of dead ends in the input graph. Here, the native non-distributed performance of Levelwise PageRank was compared against Monolithic PageRank on a CPU as well as a GPU. To ensure a fair comparison, Monolithic PageRank was also performed on a graph where vertices were split by components. Results indicate that Levelwise PageRank is about as fast as Monolithic PageRank on the CPU, but quite a bit slower on the GPU. Slowdown on the GPU is likely caused by a large submission of small workloads, and expected to be non-issue when the computation is performed on massive graphs.
Explore our comprehensive data analysis project presentation on predicting product ad campaign performance. Learn how data-driven insights can optimize your marketing strategies and enhance campaign effectiveness. Perfect for professionals and students looking to understand the power of data analysis in advertising. for more details visit: https://bostoninstituteofanalytics.org/data-science-and-artificial-intelligence/
StarCompliance is a leading firm specializing in the recovery of stolen cryptocurrency. Our comprehensive services are designed to assist individuals and organizations in navigating the complex process of fraud reporting, investigation, and fund recovery. We combine cutting-edge technology with expert legal support to provide a robust solution for victims of crypto theft.
Our Services Include:
Reporting to Tracking Authorities:
We immediately notify all relevant centralized exchanges (CEX), decentralized exchanges (DEX), and wallet providers about the stolen cryptocurrency. This ensures that the stolen assets are flagged as scam transactions, making it impossible for the thief to use them.
Assistance with Filing Police Reports:
We guide you through the process of filing a valid police report. Our support team provides detailed instructions on which police department to contact and helps you complete the necessary paperwork within the critical 72-hour window.
Launching the Refund Process:
Our team of experienced lawyers can initiate lawsuits on your behalf and represent you in various jurisdictions around the world. They work diligently to recover your stolen funds and ensure that justice is served.
At StarCompliance, we understand the urgency and stress involved in dealing with cryptocurrency theft. Our dedicated team works quickly and efficiently to provide you with the support and expertise needed to recover your assets. Trust us to be your partner in navigating the complexities of the crypto world and safeguarding your investments.
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
Big data analytical driven fraud detection for finance; banks and insurance
1. Big Data Analytical Driven Fraud Detection for Finance-
Banking and Insurance
2. Customer data security is one of the biggest challenges that banks the world over face. A
few numbers show how significant this risk is:
The Nilson Report estimates that in 2016, losses topped USD 24.71 billion. That represents a
12% increase over the previous year.
According to a report from Javelin Strategy, there's a new identity theft victim every two
seconds, and many of the incidents involve credit cards.
ACI Worldwide (an electronic payment systems company) estimates that 46% of Americans
have had their card information compromised at some point in the past 5 years.
Approximately 65% of the time, credit card fraud results in a direct or indirect financial loss
for the victim.
Among victims who reported direct financial losses, the average was $7,761 and the median
was $2,000 per victim. This is compared with those who suffered indirect losses with an
average of $261 and median of $10.
23 frightening credit card statistics: Feb 1, 2017; Rebecca Lake; Available at:
https://www.creditdonkey.com/credit-card-fraud-statistics.html
3. Fraud accounts for 5-10 percent of claims costs for U.S. and Canadian insurers.
Nearly one-third of insurers (32 percent) say fraud was as high as 20 percent of
claims costs;
57 percent of insurers predict an increase in personal-property fraud by
policyholders. Around 58 percent say the same for personal auto insurance, and 69
percent expect a rise in workers-compensation scams;
61 percent predict an increase in auto-insurance fraud by organized rings, and 55
percent predict an increase workers-compensation scamming;
About 35 percent say fraud costs their companies 5-10 percent of claim volume.
More than 30 percent say fraud losses cost 10-20 percent of claim volume;
Detecting fraud before claims are paid, and upgrading analytics, were mentioned
most often as the insurers’ main fraud-fighting priorities; and
One-third of insurers don’t feel adequately protected against fraud. (FICO, August
2013)
Insurance fraud statistics: Available at: http://www.insurancefraud.org/statistics.htm#2
4. Insurance companies lose an estimated $30 billion per year in
insurance fraud costs that have to get passed on to bill-paying
consumers.
The most common types of insurance fraud are:
1) Stolen car
2) car accident
3) car damage
4)health insurance billing fraud
5) unnecessary medical procedures
6) staged home fires
7) storm fraud
8) abandoned house fire
9)faked death
10) renter’s insurance
Insurance fraud statistics: Available at: http://www.insurancefraud.org/statistics.htm#2
5. Customer data security is one of the biggest challenges that banks the world over face but
Pakistani banks have now become even more vulnerable. A few quotes highlight why:
“We not only face threats from hackers who skim ATMs or manipulate online accounts just for
swindling money, but also from organised hacking groups whose objectives are wider,”- the
head of a local bank.
“Pakistan’s entire security establishment is walking a tight rope after entering into the CPEC
[China-Pakistan Economic Corridor]. Foreign powers are making every effort to embarrass the
country. We need to thoroughly investigate the real motives behind the recent skimming in the
light of previous bank data stealing incidents in which some Chinese nationals were involved,” a
well-placed source in the FIA
Over the years, the use of ATMs has been growing rapidly in Pakistan. According to SBP
statistics, about 110m ATM transactions took place in just the nine months from July 2016 to
March 2017, with the total value of these transactions exceeding Rs960 billion. As banks
continue to encourage their clients to use ATMs and as people experience the benefits doing
so, these numbers are only poised to grow.
6. In the current spree of ATM skimming, 296 customers of HBL have so far confirmed being
defrauded, an aggregate loss of PKR 10.2m, implied a press release issued by the State Bank
of Pakistan (SBP) on Dec 5. The number of bank accounts affected, though, is around 600,
according to newspaper reports.
Apart from this, several such cases have been reported from Dolmen Mall, Karachi. Reports
also surfaced of a similar cyberattack in Islamabad. Banks including HBL responded by
blocking users’ ATM cards as a precaution against further loss.
Rising Prevalence of ATM Fraud; Dec 11,2017; Dawn; Available at:
https://www.dawn.com/news/1375856
Beware- Hackers are going after ATMs in Pakistan: Salman Siddiqui, Dec 3, 2017: The Express
Tribune: Available at: https://tribune.com.pk/story/1574702/2-beware-hackers-going-atms-
pakistan/
7. The National Accountability Bureau (NAB) on Saturday arrested 23 accused officials
of State Life Insurance Corporation, including a regional manager, in a scam of over
Rs 100 million related to bogus policies. According to a NAB spokesman, the accused
caused the heavy loss through bogus insurance policies by opening 113 bank
accounts and withdrawing cash against over 430 cheques. He said the accused
officials facilitated fake policies to around 90 individuals who had never entered into
any policy with State Life Insurance. He said a local government councillor was also
among the arrested accused.
Inflated health claims, stolen cars, money laundering and fraud through life insurance is
common but not properly analyzed and quantified. Central databases need to be made by
SECP regulator too.
NAB arrests 23 officers in PKR 100 million insurance scam; April 17,2017; The News; Available
at:https://www.thenews.com.pk/print/199063-NAB-arrests-23-officers-in-Rs-100m-
insurance-scam
8. Culture
Level
Soft Facts
Organizational
Level
90% of the
problems
caused by
hacking
remain
undetected
and hidden
Hard Facts
Only 10% of the
problems caused by
hacking are brought
onto the surface
Top leadership Board of
Directors driven
initiative is key to
establishing
comprehensive Cyber
crime division in the
bank.
9. Availing latest technology
and analytics
Handling situations
correctly by the bank
and insurer
Big Data
Neural Networks
Machine Learning
Anomaly Detection
KPIs holistic; key
metrices
Clustering
Deep Learning
Fraud Analytics
Customer support
and awareness
Forensic IT
Handling situations
holistically
PR and Customer
perception handling
Preparing
contingency plans
for hacking
Holistically combating fraud
Deep Learning is based on neural networks
which mimic how our brain and neurons
work.
Big Data and Machine Learning Analytics
10. Big Data and Machine Learning Analytics
Being hacked is an inevitable fact of life and normal way
of doing business now. What matters now is how we
handle the crises when it occurs, and how much pre-
emptive preparations we take to minimize hacking
attempts. It’s important to remain at level with hackers on
technology and to utilize new technologies so that we
remain at the forefront of all cyber issues
Utilizing big data and Machine Learning (ML) is one of the
way to remain updated and gives us a strong deterrent
mechanism with which to minimize cyber hacking
attempts.
Gain insights and alerts from machine learning techniques
that go far beyond static thresholds and traditional
dashboards. Predict issues before they become major
ones.
Flag suspicious transactions. This is when some fraud
can’t be proven or money laundering cant be proven but
it is still suspicious. decrease fraud incidents and
increase your technology arsenal against hacking
efforts through machine learning.
11. Anomaly Detection
Machine learning algorithms learn the normal behavior of your business data in order to identify and
alert on anomalies and on what is abnormal. Anomalies aren’t categorically good or bad, they’re just
deviations from the expected value for a metric at any given point in time.
You can’t correctly attribute a specific anomaly to the underlying business incident if you don’t know
about anomalies to begin with (both good and bad anomalies). And that’s one of the main reasons
companies need anomaly detection: to get accurate feedback on the effectiveness of business
initiatives so that money and manpower can be utilized much more efficiently and to greater impact
for a company’s bottom line. Anomaly detection can point to positive business incidents as well as to
potential disasters.
12. The Silver Lining; but not the
magical cure for everything
– It's important to specify what machine learning is not:
– Big Data and ML is not a magic bullet to cure all hacking. There is no such thing
as ‘unhackable’. Even the best organizations and the most secretive ones like
CIA, NSA, Facebook, Microsoft, Uber get hacked.
– There are always human factors in place as well.
– Hacking won’t stop; it will only get worse as technology increases. As we
modernize over the future digital trends and hence financial consequences of
hacking will only increase. Digital trends are quickly becoming mainstream like
more online transactions, availing crypto-currencies like bitcoin, quantum
computers and is only projected to exponentially change our lifestyles.
– When there is a will, there is a way; hackers will continue inventing and finding
out new ways to exploit our customers. Banks must stay updated on technology
to minimize hacking to safeguard customer trust in their organization.
– Even when quantum computers will become a reality, there won’t be any
internet or online service that is ‘unhackable’. Classical cryptography will
become obsolete yes but will be replaced by quantum cryptography and new
ways of to hack and stop hacking.