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Lessons Learned:

COVID-19 and Fraud Management

To see more insights on COVID-19 and learn how ActimizeWatch can help your team, get in touch here.

As Financial Services Organizations developed their fraud management strategy for 2020, anticipating a global pandemic was not in the plan.

Recently, FSOs have had to quickly adapt their fraud controls to account for the changes in both genuine customer and fraudster behavior. In addition, the fast move to payments digitization brings more web and mobile banking registrations and increased use of P2P services – which in turn attracts related fraud scams.

As society adjusts to our new normal, many of these changes are likely to remain. FSOs must stay nimble to proactively monitor the shifting fraud threat landscape. With ever-changing malware, new methods of cross-channel account takeover and social engineering, fraudsters constantly test the limits of FSOs’ fraud protection strategies, and then meticulously plot their next attack method accordingly.

NICE Actimize is offering an exclusive look at our fraud insights around COVID-19. Until now, these insights were only available to our ActimizeWatch managed analytics service clients.

Fill out the form to access more data trends and expert insights

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ActimizeWatch: Advanced Fraud Analytics for COVID-19 Trends

NICE Actimize is offering an exclusive look at our fraud insights around COVID-19. Until now, these insights were only available to our ActimizeWatch managed analytics service clients.

Get Started

Account Services Transactions

Account Services Transactions Insights

  • Likely reflects the following:
    • Consumers at home so use laptop/desktop more
    • Many FSO’s mandate registration and set up of mobile on Web first
  • Fraudsters have limited their attacks as their ability to cashout has been reduced.
  • Expect a surge in fraud as lockdown restrictions ease

Mobile

  • Stable transaction volumes
  • Decreased fraudulent activity

Web

  • Significant increase in web based activity

Recommendation

  • Native mobile journeys for enrolment
  • Create capacity for a fraud spike

Debit Card Transactions

Debit Card Transactions Insights

  • Increase in genuine is helping fraudsters hide
  • Pressure on FSO’s to limit declines also aids fraudsters
  • Increase in first party fraud claims due to financial pressures
  • Increase in purchase scams

ATM

  • Increase in average withdrawal amount
  • Decrease in transaction volume

CNP

  • Significant increase in fraudulent activity

CP

  • Decrease in transaction volume

P2P Transactions

P2P Transaction Insights

  • Starting to see utilization of credentials taken from COVID-19 scams
  • Low value P2P scams are working

Mobile

  • Increase in fraudulent activity
  • Decrease in transaction volume

Web

  • Increase in average transaction amount
  • Increase in fraudulent activity

Recommendation

  • Add compromised data feeds
  • Add extra data sources, e.g. Telco data to reduce fraud
  • Re-optimize models for change in behvaiour

Commercial ACH Transactions

Commercial ACH Transactions Insights

  • Holding off attacks due to reduced ability to cash out
  • Where there is a good opportunity it’s being hit hard and the lower value ones are left for another day

Offline

  • Increase in legitimate activity
  • Decrease in fraudulent activity

Web

  • Significant increase in average transaction amount for fraudulent payments

Recommendation

  • Create capacity for a future surge in fraud as lockdown eases
  • Review rules as changes in behaviour impact on models

About the Data

This data comes from ActimizeWatch. The NICE Actimize Managed Analytics Service, ActimizeWatch, proactively monitors your data health, as well as model performance and fraud trends. The Financial Service Organizations that are currently active ActimizeWatch clients make up a majority of the leading financial institutions and credit unions in the United States. This means these insights provide FSOs a wide view of both monetary and non-monetary transaction activity across the industry. Our ActimizeWatch fraud experts are working hand in hand with our customers to provide these insights and recommendations on an ongoing basis This allows institutions to make more accurate and proactive decisions when adjusting their fraud strategy.

How can you get access to this type of data?

ActimizeWatch is a cloud-based managed analytics solution, which provides the two key elements necessary for proactive fraud analytics optimization. The solution continuously monitors analytic performance to determine shifting fraud threats. This allows for a scalable and rapid method of adapting analytics to stay ahead of changing fraud patterns. With ActimizeWatch, FSOs continuously send anonymized transactional data to the Actimize X-Sight cloud where analytics performance is automatically evaluated – quickly detecting shifting fraud threats. Machine learning algorithms are applied to this data in the cloud – unearthing new risk variables and features linked to these changing fraud patterns. These variables are used to optimize analytics models, which are tailored individually to each FSO. Enhanced models are simulated in the cloud and then delivered to ActimizeWatch users for testing and implementation

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Based on Aite Group’s latest research reports, learn about the CARES Act, its impact on financial crime risk management, as well as challenges and opportunities for financial institutions.

Available on-demand here

Speakers: David O’Connell and Trace Fooshee | Aite Group
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In this interactive discussion, hear PwC and NICE Actimize experts discuss challenges for financial services organizations and why you need to look at controls differently.

Available on-demand here

Speakers: Vikas Agarwal, Partner, Financial Services Advisory Practice | PwC