The last couple of years have seen an unprecedented surge in the demand for digital payments globally, thanks to advancements in technology that have brought about remarkable improvements in speed, convenience and security. Throw in a pandemic, and even those who had shied away from online payments are now keen to pay digitally.
Unfortunately, criminal minds have been equally busy figuring out novel ways to steal money, and the various security layers protecting digital money movements have not deterred them from using sophisticated ways to go about their business. Fraudsters closely watch activities, behaviors and even device usage patterns of individuals, and launch nefarious ways to manipulate the innocent into divulging sensitive payment information.
Individuals today use various payment channels such as card present, card not present, mobile wallets, account-to-account and others, and channel preferences depend on both convenience and acceptance. The same person may use multiple channels at different times and would expect equal protection across all of them as well as holistic security at an aggregated level.
The key to successful fraud detection lies in utilizing the wealth of knowledge that risk management analysts have garnered over the years, and overlaying a data-driven mechanism that uses recent reports of fraud. While the former strategy detects repeating fraud patterns, the latter would help discover new ones.
An efficient and effective fraud detection or fraud prevention system would have to factor in all of the above. This implies using adaptive cutting-edge technology to stay ahead of criminals at all times to provide 360 degrees protection, whatever the payments channel or acceptance instrument.