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Outsmarting First-Party Fraud with a More Proactive Solution
The term “fraud” has become a catch-all for some financial institutions, which sometimes downplay these occurrences as mere nuisances rather than genuine threats. However, the stark reality is that fraud has given rise to a multitude of attack methods, each carrying its own nuances and varying degrees of impact on customers and financial institutions.
In an age of escalating cyberattacks, the proverb “knowledge is power” holds truer than ever. A financial institution’s familiarity with various fraudulent tactics becomes central to its ability to prepare for and safeguard against potential threats. By delving into the intricacies of these attacks, institutions can strategically invest in the right fraud prevention solutions that address particular types of fraud.
According to a Javelin Strategy & Research webinar, Cybersecurity: 2024 Trends and Predictions, more serious fraud attacks are set to wreak havoc for FIs in 2024 in the form of deepfakes and other artificial-intelligence-related scams. FIs that don’t take these types of attacks seriously could face reputational and monetary damage.
Sunil Madhu, CEO and Founder of Instnt, and Tracy Kitten, Director of Fraud & Security at Javelin Strategy & Research, further delved into this topic during a recent PaymentsJournal podcast. They discussed the current types of fraud that face financial institutions, why first-party fraud is complex to resolve, and what steps FIs can take to resolve first-party fraud.
PaymentsJournalOutsmarting First-Party Fraud with a More Proactive SolutionPaymentsJournal Outsmarting First-Party Fraud with a More Proactive SolutionPaymentsJournaljQuery(document).ready(function ($){var settings_ap40485174 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"40485174",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_440135_29",settings_ap40485174); }catch(err){ console.warn("cannot init player", err); } });
Understanding the Various Types of Fraud
The pandemic brought on an acceleration toward digitalization, and this opened the door for cybercriminals to leverage the latest in tech innovation to detect vulnerabilities in their targets and launch attacks. These attacks have been especially felt within the banking sector.
Madhu outlined the types of fraud having the biggest impacts on financial institutions today:
Synthetic ID fraud: This is also referred to as synthetic identity theft. Fraudsters create a fake identity by using real and fictitious personal information. Criminals begin by stealing a real Social Security number through the dark web or other data breach, then create a fictitious name, date of birth, and address. This new “synthetic” identity is then used to open credit cards...
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By The PaymentsJournal PodcastThe term “fraud” has become a catch-all for some financial institutions, which sometimes downplay these occurrences as mere nuisances rather than genuine threats. However, the stark reality is that fraud has given rise to a multitude of attack methods, each carrying its own nuances and varying degrees of impact on customers and financial institutions.
In an age of escalating cyberattacks, the proverb “knowledge is power” holds truer than ever. A financial institution’s familiarity with various fraudulent tactics becomes central to its ability to prepare for and safeguard against potential threats. By delving into the intricacies of these attacks, institutions can strategically invest in the right fraud prevention solutions that address particular types of fraud.
According to a Javelin Strategy & Research webinar, Cybersecurity: 2024 Trends and Predictions, more serious fraud attacks are set to wreak havoc for FIs in 2024 in the form of deepfakes and other artificial-intelligence-related scams. FIs that don’t take these types of attacks seriously could face reputational and monetary damage.
Sunil Madhu, CEO and Founder of Instnt, and Tracy Kitten, Director of Fraud & Security at Javelin Strategy & Research, further delved into this topic during a recent PaymentsJournal podcast. They discussed the current types of fraud that face financial institutions, why first-party fraud is complex to resolve, and what steps FIs can take to resolve first-party fraud.
PaymentsJournalOutsmarting First-Party Fraud with a More Proactive SolutionPaymentsJournal Outsmarting First-Party Fraud with a More Proactive SolutionPaymentsJournaljQuery(document).ready(function ($){var settings_ap40485174 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"40485174",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_440135_29",settings_ap40485174); }catch(err){ console.warn("cannot init player", err); } });
Understanding the Various Types of Fraud
The pandemic brought on an acceleration toward digitalization, and this opened the door for cybercriminals to leverage the latest in tech innovation to detect vulnerabilities in their targets and launch attacks. These attacks have been especially felt within the banking sector.
Madhu outlined the types of fraud having the biggest impacts on financial institutions today:
Synthetic ID fraud: This is also referred to as synthetic identity theft. Fraudsters create a fake identity by using real and fictitious personal information. Criminals begin by stealing a real Social Security number through the dark web or other data breach, then create a fictitious name, date of birth, and address. This new “synthetic” identity is then used to open credit cards...