As financial services evolve rapidly so too does the nature of financial crime.
It is difficult enough as it is to tackle traditional threats of financial crime without new business models. New business models allow threat actors to deploy new vectors of attack.
In Asia Pacific alone, US$ 171 billion is lost to cybercrimes each year and penalties for compliance failures are skyrocketing.
Against this backdrop, how should the financial services industry prioritise their tech investments and strategise against this rising threat?
FIs must ramp up capabilities as challenges such as faster payment systems and digital channels reshape financial crime.
According to the survey, education helps create awareness for end-users, especially the younger age group, as they are the most vulnerable to banking fraud.
Regulations have evolved, and execution of its policies usually takes time. It relies on the ecosystem of the FIs to transform and implement to adapt to the new age of finance.
Data sharing between FIs to prevent financial crime is critical to reducing more complex fraud typologies, especially as interactions increasingly shift to new financial services.
Criminals are getting more creative. FIs are required to ramp up capabilities as interactions increasingly shift to digital channels.
Many resources are required for gap analysis and focusing on fraud control as FIs move into the new age of finance.
Moderated by Dev Dhiman, Managing Director, Asia-Pacific, GBG
Using ML and AI to augment fraud rules to provide better actionable intelligence to the human element.
Increased collaboration and data sharing between stakeholders can lead to better policing of financial crime and early detection of fraud.
How FIs should adapt to the evolved fraud to sustain its system over time.
Utilize data and customize approaches at the individual level to effectively fight fraud and minimise customer impact.
Victor Apps, Director, Financial Crime Risk, Specialist, Asia, Standard Chartered Bank, Raj Viswanathan , Chief Information Security Officer, Nium and Dev Dhiman, Managing Director APAC, GBG discussed the new age of financial crime and how the professionals in the financial crime space need to start operating under an innovation imperative.