There were four frequently made predictions by
industry experts, financial institutions and technology providers at the
beginning of 2019, according to the recent Digital Banking Trends Progress
Report from D3 Banking Technology.
“Even though we’re only halfway through, 2019
is shaping up to be another wild ride in financial services,” said Mark Vipond,
CEO of D3. “In 2019, banks and credit unions must focus on consolidating and
streamlining their platforms and leveraging modern technology that helps them
better understand their customers’ and members’ needs.”
While only 13 percent of organizations use artificial intelligence and machine learning to detect and deter fraud, another 25 percent plan to adopt such technologies in the next year or two — a nearly 200 percent increase. Fraud examiners revealed this and other anti-fraud tech trends in a cross-industry, global survey by the Association of Certified Fraud Examiners, developed in collaboration with analytics firm SAS.
Organizations across the world face a new risk paradigm: one that encompasses cyber and physical threats. We’ve heard the stories associated with ATM skimming, identity theft, data breaches, scams and phishing. Large financial services organizations are often the victim of hackers looking to steal corporate information and transactional data or funds, and criminals continue to become more sophisticated in their approach.
When businesses in the U.S. adopted EMV chips in credit and debit cards, criminals shifted their fraud efforts to online channels. That shift, coupled with large scale data breaches, loosening credit standards and the exploitation of legacy credit creation practices, laid the groundwork for synthetic identity fraud (SIF) — the combination of real and fake data to create a brand-new identity that belongs to no one, apart from the criminal who created it.
By Carolyn Crandall
The days of Jesse James’s train and bank robberies and John Dillinger kicking down doors with his trademark Tommy gun may be long gone, but bank heists are alive and well in the 21st century — albeit with a new flair. Instead of dramatic physical robberies, today’s criminals have shifted the battleground to cybersecurity, infiltrating the networks of financial institutions globally to steal money and personal information. The attacks remain staggering. Back in 2012, individuals and businesses are believed to have lost approximately $78 million during Operation High Roller. Fast forward to today, and the hacking group known as Bandidos Revolution Team is reported to have stolen hundreds of millions of pesos by infiltrating interbank payment systems and hacking into ATMs. Notably, this group is not believed to be connected to another, separate 300-million-peso heist from five banks last year.