illustration of how banks can prevent fraud from global hot spots

This is the second part in a 2-part series on global fraud hot spots. Read the first part of the series here.As we covered in our first post, different types of fraud can originate from any location. Just because the fraud hot spot countries outlined in our last post (Turkey, Nigeria, India, Morocco, and North Korea) are known for specific tactics does not mean that these same fraud techniques don’t originate from other countries as well. Nor does it mean that other types of fraud don’t originate from the hot spot nations listed here.

Regardless of where fraud originates, banks and financial institutions need to be prepared to stop it before it can do any damage to customers. Here are three things banks can do to stop fraud from hot spots around the world.

1. Work with Partners Who Value Continuous Learning

Fraud is constantly evolving and comes in numerous forms as this list outlines. That’s why financial institutions (FIs) need to work with a trusted provider who understands that fraudsters and criminals will constantly shift tactics. In this respect, fraud is a lot like fashion. It constantly changes from season to season. FIs need to stay up to date on the latest trends or they could get stuck with an outdated fraud prevention system. 

For example, if a provider offers solutions for a single use case fraudsters will simply target other operations to bypass that particular use case. FIs need to work with partners who are tuned into the evolving nature of fraud and prepared to change their tactics as needed.

2. Know Your Customers’ Normal Behaviors

As they work to prevent fraud, FIs can’t afford to interrupt their customers’ experiences. Today’s customers have grown accustomed to being able to transact from any device they want and have little tolerance for delays or cumbersome authentication requests. Banks and FIs must build a digital profile of their customers based on every interaction they have to understand how they normally behave. These profiles can evolve over time as the customers’ career, address, and family situation changes. FIs can assess whether customers are logging in at strange hours of the day or making overseas money transfers that raise red flags. But having this foundation of a customer’s normal behavior makes it much easier to determine if they are behaving unusually or if a fraudster is attempting to access their account.

3. Know Your Bank Customers’ Devices

It’s equally important to know your customers’ devices and how they normally interact with them. FIs should perform assessments at each interaction to determine if the device used to log into their account is a known device associated with the customer or an unfamiliar one from an unfamiliar location. FIs can determine if the customer is using their keyboard or mobile touchscreen as they normally would or if their interaction is slightly different. If their device behaviors are unusual for them, FIs can stop the transaction if they suspect an account takeover is underway or if the device has been infected with malware. 

Fraud comes in many forms and across different locations. Following these tips are an important step for banks worldwide to keep their customers safe in an expanding global economy.

Download The APAC Bank’s Guide to Building Digital Trust to understand the importance of digital trust and how it will impact FIs across the APAC region.