As much as the digital shift has given a boost to new and existing online ventures and processes, this rising tide has also increased the number of “surfaces” that cybercriminals have to work with, despite our collective best efforts to stop them.
“The fraud just seems to have gotten worse,” Refinitiv Global Head of Digital Identity and Fraud Solutions James Mirfin told Karen Webster, on the launch of its newly combined and streamlined risk and fraud solution following its GIACT acquisition last November. “We’re trying to make the protection capabilities as broad as possible through a single point of integration.”
The goal of this new integrated, end-to-end application programming interface (API) security solution, he said, is to simply make life easier for customers.
“Whether you’re thinking about identity, payments, account takeover, fraud, or compliance or regulatory risks, [we are] bringing those together in one easy way for customers to use through a single integration,” he said.
Obviously, with fraud on the rise, the timing is right and the need is strong. Mirfin noted that no one else is doing what Refinitiv is doing, for one simple reason: “It’s really hard to do.”
“I think where we’ve been very fortunate is that we’ve brought together two businesses that are all about managing huge amounts of disparate data, and trying to bring that together in a way that a customer can use intelligently and easily,” he said.
The New Challenge
Waiting two or three days for a payment to clear is a pain, but it does create an opportunity for checks and balances, including clawing back a payment. Compare that to the ever-present pressure to move money faster, and the opportunities for fraudsters become clear.
Taking on that challenge in an increasingly active environment — and delivering an end-to-end solution that manages risk throughout the customer lifecycle — has been a priority for Refinitiv since it announced its acquisition of GIACT late last year. The goal, said Mirfin, has been to combine its dual competencies to create an end-to-end fraud and risk platform that the market sorely lacks, particularly for smaller players.
Read more: Refinitiv Acquires GIACT To Build End-to-End Fraud And Risk Platform
For larger banks with billion-dollar tech teams, handling a broad set of compliance and risk issues might be a manageable, albeit increasingly expensive, challenge to take on. However, for smaller organizations or emerging startups, figuring out all of these practices and combining the different capabilities is comparatively much more difficult.
“We want to allow our customers to more confidently go into these new business areas, because they can protect themselves along the way,” Mirfin said. “Whether their customers are opening accounts, adding new beneficiaries, making payments or making account changes, we can help [the organization manage the fraud-related risks inherent in those activities].” The goal is to enable their clients to offer new services to their customers with protection baked in.
Busting Insecure Silos
Continuing with the status quo won’t cut it. For any organization that operates and transacts digitally — whether a financial institution, business, government entity or nonprofit — Mirfin noted, there must be rethinking and replacing of siloed approaches to fraud and risk prevention.
That’s because silos create a fertile breeding ground for fraudsters who profit from exploiting the blind spots.
Phishing scams aren’t new; they are a well-known security risk. But of late, said Mirfin, fraudsters have taken business email compromise (BEC) scams via phishing to “another level,” compromising accounts into six- and seven-figure paydays simply by exploiting gaps created by a siloed approach.
And they aren’t the kinds of attacks that institutions can fend off with “green-screen” legacy tech, he said. However, as fraudsters get bolder, doing nothing isn’t an option, either.
“When you start to look at that, you realize you’ve got to [manage risk throughout the customer lifecycle and across functions — you need to apply a holistic approach.] Otherwise, the fraudsters will just have a field day. Every time it’s a siloed approach, [they will find gaps and exploit any possible vulnerability],” Mirfin told Webster.
You may also be interested in: FBI: Why AI And MFA Provide The Most Effective Fraud Defense
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PYMNTS DATA: 100 HEALTHCARE EXECS SPEAK OUT ON USING AI TO CURB FRAUD, WASTE AND ABUSE
About: Healthcare firms are losing 12 percent of their annual revenues to fraud, waste and abuse (FWA), yet few utilize artificial intelligence (AI) to address these issues due to cost concerns. In AI In Focus: Targeting Fraud, Waste And Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to learn how AI could actually help firms unlock savings by curbing costly false claims and false positives.
As a lot because the digital shift has given a lift to new and present on-line ventures and processes, this rising tide has additionally elevated the variety of “surfaces” that cybercriminals need to work with, regardless of our collective greatest efforts to cease them.
“The fraud simply appears to have gotten worse,” Refinitiv International Head of Digital Identification and Fraud Options James Mirfin informed Karen Webster, on the launch of its newly mixed and streamlined danger and fraud answer following its GIACT acquisition final November. “We’re making an attempt to make the safety capabilities as broad as doable by a single level of integration.”
The aim of this new built-in, end-to-end utility programming interface (API) safety answer, he mentioned, is to easily make life simpler for patrons.
“Whether or not you are fascinated with identification, funds, account takeover, fraud, or compliance or regulatory dangers, [we are] bringing these collectively in a single simple means for patrons to make use of by a single integration,” he mentioned.
Clearly, with fraud on the rise, the timing is true and the necessity is robust. Mirfin famous that nobody else is doing what Refinitiv is doing, for one easy purpose: “It is actually exhausting to do.”
“I believe the place we have been very lucky is that we have introduced collectively two companies which can be all about managing large quantities of disparate knowledge, and making an attempt to convey that collectively in a means {that a} buyer can use intelligently and simply,” he mentioned.
The New Problem
Ready two or three days for a cost to clear is a ache, but it surely does create a chance for checks and balances, together with clawing again a cost. Examine that to the ever-present stress to maneuver cash quicker, and the alternatives for fraudsters develop into clear.
Taking up that problem in an more and more energetic setting — and delivering an end-to-end answer that manages danger all through the shopper lifecycle — has been a precedence for Refinitiv because it introduced its acquisition of GIACT late final yr. The aim, mentioned Mirfin, has been to mix its twin competencies to create an end-to-end fraud and danger platform that the market sorely lacks, significantly for smaller gamers.
Learn extra: Refinitiv Acquires GIACT To Construct Finish-to-Finish Fraud And Threat Platform
For bigger banks with billion-dollar tech groups, dealing with a broad set of compliance and danger points is perhaps a manageable, albeit more and more costly, problem to tackle. Nonetheless, for smaller organizations or rising startups, determining all of those practices and mixing the totally different capabilities is relatively far more tough.
“We need to permit our clients to extra confidently go into these new enterprise areas, as a result of they will shield themselves alongside the way in which,” Mirfin mentioned. “Whether or not their clients are opening accounts, including new beneficiaries, making funds or making account adjustments, we can assist [the organization manage the fraud-related risks inherent in those activities].” The aim is to allow their shoppers to supply new companies to their clients with safety baked in.
Busting Insecure Silos
Persevering with with the established order received’t reduce it. For any group that operates and transacts digitally — whether or not a monetary establishment, enterprise, authorities entity or nonprofit — Mirfin famous, there should be rethinking and changing of siloed approaches to fraud and danger prevention.
That’s as a result of silos create a fertile breeding floor for fraudsters who revenue from exploiting the blind spots.
Phishing scams aren’t new; they’re a widely known safety danger. However of late, mentioned Mirfin, fraudsters have taken enterprise e mail compromise (BEC) scams through phishing to “one other degree,” compromising accounts into six- and seven-figure paydays just by exploiting gaps created by a siloed method.
And so they aren’t the sorts of assaults that establishments can fend off with “green-screen” legacy tech, he mentioned. Nonetheless, as fraudsters get bolder, doing nothing isn’t an choice, both.
“Once you begin to have a look at that, you understand you’ve obtained to [manage risk throughout the customer lifecycle and across functions — you need to apply a holistic approach.] In any other case, the fraudsters will simply have a subject day. Each time it’s a siloed method, [they will find gaps and exploit any possible vulnerability],” Mirfin informed Webster.
You may additionally be thinking about: FBI: Why AI And MFA Present The Most Efficient Fraud Protection
——————————
PYMNTS DATA: 100 HEALTHCARE EXECS SPEAK OUT ON USING AI TO CURB FRAUD, WASTE AND ABUSE
About: Healthcare companies are shedding 12 % of their annual revenues to fraud, waste and abuse (FWA), but few make the most of synthetic intelligence (AI) to handle these points as a result of value considerations. In AI In Focus: Concentrating on Fraud, Waste And Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to find out how AI may truly assist companies unlock financial savings by curbing pricey false claims and false positives.
