The Problem with Financial Fraud Detection (and How to Improve It)

By Haystax, August 1, 2016 | SHARE

By Hannah Hein and Tom Read

Financial services institutions use various tools and techniques to prevent fraudulent activity and to quickly mitigate the impact of fraud when it does occur. Research and experience suggest, however, that financial fraud detection could be significantly improved.

As things stand, breaches have increased by 141 percent since 2011. Not only that, 50 percent of fraudulent events are first detected by customers – not by their banks’ fraud teams.

During a recent fraud detection project with a major international bank, Haystax Technology gained insight into key factors contributing to the relatively low prevention rate:

Based on these discoveries, we believe financial institutions can save a lot of time and money by developing and deploying a solution that includes these three core elements:

If you found this interesting and would like to learn more, check out our Fraud Detection Case Study here

Hannah Hein is Insider Threat Project Manager and Tom Read is Director of Insider Threat Programs at Haystax Technology.