Quantzig, a leading analytics advisory firm that delivers customized analytics solutions, has announced the completion of their article that analyses the role of fraud analytics in combating digital fraud.
With digital fraud reaching an alarming rate in recent years, there is a strong focus on fraud analytics and advanced algorithms that help tackle the issue at hand.
The growing popularity of ecommerce platforms, rise in online transactions, an explosion of new payment channels and tech-savvy fraudsters have led to a rise in instances of data breaches and electronic fraud.
Today hackers are well-versed with many techniques that help tap into the online information of a user. Owing to such factors, financial firms have been grappling with a variety of new-age e-frauds that have hindered their ability to drive profits.
Expert analysis of the future of the banking industry shows that to gain a competitive advantage and prevent data loss, banks cannot just afford to remain just passive observers; they are expected to take proactive measures to tackle the growing challenges using advanced analytics.
Challenges faced by banks in the fight against fraud
- Emergence of new channels and services
The emergence of new offerings has paved the way for new payment channels. To stay at par with their peers most banking firms and other financial service providers including banks, alternative payments providers, and e-commerce companies have started launching new offerings at a heightened frequency.
2. Ever-increasing number of tech-savvy hackers
Hackers today are skilful and adept at outwitting the data security systems of banks. They leverage sophisticated software and data analysis techniques to perpetrate cross-channel frauds. Such advanced techniques have made it easier for them to mimic customer behaviour and analyse online transactions at a deeper level.
3. Evolving regulatory landscape
Monitoring fraudulent activities and at the same time complying with the fast-evolving regulatory landscape is quite a challenge for most banking firms. Even if purely unintentional, such regulations often create more hurdles for fraud management. In most cases, such regulations require banks to reveal the data management approach adopted by them, which unintentionally reveals to fraudsters the confidential techniques of detecting frauds.
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