In the fast-paced world of payments, fraud remains an ever-present threat, costing institutions and customers billions annually. To combat this pervasive issue, payment professionals are increasingly turning to integrated suites of fraud solutions, recognising the indispensable role they play in safeguarding transactions.
Among these solutions, transaction monitoring and behavioural analytics emerge as essentials, working in tandem with Verification of Payee systems and other fraud prevention measures to fortify defences.
Transaction monitoring acts as the vigilant detective of banking operations, meticulously scrutinising every transaction for signs of suspicious activity. By comparing current patterns with historical behaviour, Bottomline Secure Payments can swiftly detect anomalies and raise alerts, serving as an early warning system against potential fraud attempts. However, transaction monitoring alone may not capture all fraudulent activities, necessitating the augmentation of behavioural monitoring.
Behavioural monitoring delves deeper, analysing typical patterns of behaviour and activity to identify deviations or outliers. It serves as an initiative-taking measure, flagging unusual actions such as unauthorised account access, or atypical payment behaviour.
By combining transaction and behavioural monitoring, payment professionals can effectively detect and halt fraudulent activities in real- time – Bottomline’s Secure Payments boasts an impressive average millisecond response time – mitigating potential losses and preserving trust.
Time is of the essence
According to data published by the UK’s Payment Systems Regulator, challenger banks are currently enabling the most APP fraud.
Ruud Grotens, head of risk solutions consulting at Bottomline
From that point of view, the urgency for adopting or improving payment fraud defences that can handle high volumes and stop fraud both in real- time, has never been greater.
Insider fraud, which is far too often underestimated, poses a significant threat to organisations. Collaborative efforts between internal bad actors and external criminals can result in APP fraud, through data leakage, consequential substantial financial losses and reputational damage, for example.
Integrated fraud solutions bridge the gap between disparate types of fraud, recognising their interconnected nature. Siloed approaches to fraud prevention overlook the critical linkages between insider fraud, and payment fraud, leaving organisations vulnerable to sophisticated schemes.
To combat evolving fraud tactics, an integrated approach to internal and external fraud prevention is imperative. The best integrated fraud prevention technology should offer out-of-the-box libraries with best practice fraud risk indicators that provide ongoing flexibility for comprehensive behavioural analytics, real-time alerting, and transaction blocking, allowing organisations to reduce risk, and prevent fraud loss.
By breaking down silos and adopting a unified perspective on fraud, organisations can enhance their resilience against emerging threats and safeguard their commercial interests.
Staying ahead
The battle against fraud is an ongoing endeavour, requiring constant vigilance and adaptation. Fraudsters continually innovate and exploit vulnerabilities, necessitating proactive measures and advanced analytics to stay one step ahead.
By embracing integrated internal and external fraud prevention strategies and fostering collaboration across different sectors, payment professionals can effectively mitigate risks and uphold the integrity of the financial system.
In conclusion, the value of integrated fraud solutions cannot be overstated. By combining transaction monitoring, behavioural analytics, and Verification of Payee systems, organisations can fortify their defences against internal and external fraud, and protect their assets.
Ruud Grotens is head of risk solutions consulting at Bottomline
This article was first published in ‘Rising to the fraud challenge 2024’, an Open Banking Expo report in association with Bottomline. Download your copy of the report here.
