Fraud in Asia Pacific costs in excess of US$350M each year
- — 30 September, 2013 23:28
FICO has alerted chiefs of leading Asian banks to the growing threat of enterprise fraud at its annual Fraud Forum in Manila this month.
In a statement issued today, the analytics software company urged bankers to adopt the latest operational and analytics techniques to fight fraud across such emerging threat vectors as demand deposit accounts, mobile channels, application fraud and merchant fraud, as the region shifts to a post-EMV chip landscape.
The conference attracted nearly 30 of the leading banking fraud and risk executives from nine countries across Asia Pacific.
According to FICO's estimates, fraud in Asia Pacific costs in excess of US$350 million each year and is growing at an annual rate of 20-25 percent.
Closing loopholes for criminals while delivering services that minimise customer inconvenience remains a key concern for banks, FICO sources said in the statement. Mobile and online fraud, specifically card not present (CNP) transactions, continue to present a challenge, especially in markets that have secured traditional card transactions with EMV chips and pins.
"Asian consumers place a high value on convenience and are among the fastest adopters of new channels such as mobile and online banking," said Dan McConaghy, president for FICO in Asia Pacific, who hosted the forum. "At the same time, they seek confidence from banks that these channels are effectively protected, so rapid deployment of channel-specific defences is especially critical in Asia. By taking an enterprise-wide approach, banks can earn their customers' trust with swift fraud detection and positive customer contact, while also minimising losses."
At the Fraud Forum, FICO also announced the transformation of its FICO Falcon Fraud Manager. FICO's Dr. Maria Derderian explained how innovative streaming analytics are able to "learn" from individual changes in customer spending to deliver more accurate fraud scoring and fewer false positives.