Top 3 Types of Fraud Hitting the Banking Industry Right Now
And How HID and Temenos work together for head-on fraud prevention
The rate and sophistication of bank fraud is prevailing beyond what can be managed by businesses across the globe. While the consequences of breached accounts and compromised data are more devastating than ever on businesses and their customers, the methods by which criminals are attacking are only becoming more creative and complex. Predicted to cost the global economy an estimated $10.5 trillion by 2025, businesses have been thrown into a changing landscape where they must learn how to evaluate fraud prevention software, understand how it operates, and use it in combination to create a multi-layered shield against attacks.
Unfortunately, there is a growing abundance of methods by which criminals seek to bypass the security measures that intend to protect businesses and their customers from data theft. But which are currently prevailing?
According to a report published by Analyst house KuppingerCole, the most widespread strategies right now – which businesses must protect against – are Account Takeover Fraud (ATO), New Account Fraud (NAF), and Social Engineering Voice Scams.
- Account Takeover Fraud (ATO) is a type of fraud where a malicious actor attempts to gain access to an existing account belonging to another individual, typically by employing credential stuffing techniques or obtaining stolen passwords. Once the actor has gained access, they are then able to perform unauthorized activities such as making fraudulent transactions.
- New Account Fraud (NAF), also known as Synthetic Fraud or Account Opening Fraud, involves a fraudster creating a new account using previously stolen personal information. With consumer expectations constantly heightening towards the ‘perfectly seamless’ user experience, businesses are feeling the pressure to vet new customers entirely online and with as little interference as possible. Without the right security solutions in place, this balancing act opens opportunities for fraud.
- Social Engineering Voice Scams, also known as Authorized Push Payment fraud, is where an individual is targeted by a fraudster who calls and pretends to be a representative from a legitimate firm. In doing so, they trick the target into sharing personal or financial information, often using time-sensitive threats to generate panic – such as an account being compromised.
HID and the Temenos Infinity platform: powerfully pre-integrated solutions
For banks and financial services providers especially, the need to protect customers from evolving fraud methods while meeting digitalization demands a game-changing solution that is fully integrated and customizable to your specific needs.
Banks now have a new silver bullet for responding to market stressors: Temenos Infinity. It unifies digital channels and eliminates back-office siloes to enable a seamless customer experience.
As a long-standing partner of Temenos, HID has made it a priority to ensure its authentication and fraud prevention products are effectively pre-integrated with the Temenos Infinity offering – providing a smoother integration journey towards a truly end-to-end solution for banks across the globe. In doing so, HID and Temenos have established a history of enabling success for over 100 banks in over 30 countries across the Asia Pacific, Americas, Europe, Middle East & Africa regions.
Accelerate fraud prevention with an end-to-end integration
Not only does the Temenos Infinity and HID integration ensure a truly seamless experience for digital banking customers, but it tackles theft and fraud through easy integration with risk management and fraud prevention solutions. The HID Risk Management Solution, for example, uses real-time threat detection powered by artificial intelligence (AI) and behavioral biometrics.
Fraud teams are increasingly collaborating with IT teams and leveraging these technologies, which take a preventative fraud-fighting approach – rather than relying on post-event fraud analysis which provides no benefit to stopping destruction before it happens. This shift towards prevention rather than reaction means it’s no surprise that, according to Deloitte, 42% of senior leadership teams are partaking in monthly conversations about cyber security.
Temenos Infinity, secured with HID, gives banks the agility to move with the shifting landscape while providing a truly seamless digital experience for their customers.