Benjamin Wootton’s Post

𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐢𝐳𝐢𝐧𝐠 𝐅𝐫𝐚𝐮𝐝 𝐏𝐫𝐞𝐯𝐞𝐧𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐔𝐊 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐬 𝗣𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗟𝗲𝗮𝗱 𝘁𝗵𝗲 𝗪𝗮𝘆 - In 2023, financial losses soared to over £580 million. - Transitioning from detection to prevention is paramount. - Alignment with the directives of the Payment Systems Regulator is crucial. 𝗣𝗿𝗲𝘃𝗲𝗻𝘁𝗶𝗻𝗴 𝗙𝗿𝗮𝘂𝗱 𝗕𝗲𝗳𝗼𝗿𝗲 𝗜𝘁 𝗛𝗮𝗽𝗽𝗲𝗻𝘀 - The evolving financial crime landscape necessitates proactive measures. - Leveraging cutting-edge data analytics and machine learning technologies. - Ensuring the safety of customers and bolstering industry resilience. 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝘄𝗶𝘁𝗵 bigspark – 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗲 𝗟𝗼𝘀𝘀𝗲𝘀, 𝗕𝘂𝗶𝗹𝗱 𝗧𝗿𝘂𝘀𝘁 - Mitigate financial losses and enhance operational efficiency. - Cultivate trust and loyalty among customers through proactive measures. - Benefit from our innovative solutions and proven track record. Are you ready to take the proactive approach to fraud prevention with us? 💡 #FinCrime #Fraud #FraudPrevention #DataEngineering #MachineLearning #AI #DataScience #Bigdata #DataQuality #DataAnalytics #Bigspark

Introducing Enhanced Fraud Data (EFD)🔒 Combatting Authorised Push Payment (APP) fraud💳 🛡️ Enhance fraud detection and prevention. ➡️ Adoption of EFD messaging standard under ISO20022. ➡️ Facilitates better data exchange among payment service providers. ➡️ Empowers financial institutions to identify and mitigate high-risk transactions promptly. Reduce APP fraud instances and improve consumer protection. Discover how bigspark's Financial Crime Practice supports banks in strengthening fraud prevention capabilities using modern machine learning solutions. Thoughts on fighting financial fraud?💭 #Fraud #FraudPrevention #FinCrime #DataEngineering #MachineLearning #AI #DataScience #Bigdata #DataQuality #DataAnalytics #Bigspark

FinCEN recently issued an alert to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (GenAI) tools. FinCEN has stated that this trend of sophisticated scams poses a significant risk to anti-money laundering efforts as well as national security. FinCen found after analyzing BSA data, that after opening accounts using GenAI fake identities, criminals use those accounts to launder funds from other fraud schemes that involve checks, credit cards, authorized push payments, loans and unemployment benefits. FinCEN provides a list of indicators that additional scrutiny might be warranted; including but not limited to: inconsistencies among multiple identity documents submitted by the customer; a customer’s inability to satisfactorily authenticate their identity, source of income, or another aspect of their profile; and inconsistencies between the identity document and other aspects of the customer’s profile. You can read the alert below for more details. #FinCEN #creditunions #cusos #compliance #AI

Yesterday, FinCEN released an alert on fraud schemes involving deepfake media targeting financial institutions (FIs). The alert describes how GenAI tools are enabling deepfake fraud schemes against FIs by exploiting the customer identification and verification process and customer due diligence (CDD) controls. Once in, criminals will use their accounts to receive and launder illicit funds from other fraud schemes (e.g., check fraud, credit card fraud, online scams). To help combat this trend, FinCEN has included common financial red flags for FIs to monitor along with information on including in SARs #fraud #genai #kyc #cdd https://lnkd.in/eYQTrgiQ

Chargebacks and friendly fraud cost merchants billions annually, with first-party fraud accounting for up to 75% of these losses. To combat this, businesses should implement clear policies, advanced fraud detection tools, and real-time chargeback monitoring. These strategies reduce financial losses, enhance customer trust, and improve operational efficiency. #ChargebackPrevention #FriendlyFraud #EcommerceSecurity #FraudDetection #DigitalCommerce #MerchantProtection #PaymentSecurity #CustomerTrust

How do you know a customer is who they say they are? Onboarding practices are constantly changing to settle this problem and banish fraudsters with consistency and reliability. Now, FinCEN is stepping in with new rules that mandate how banks collect SSN data, mandating they collect the full nine digits rather than the last 4. In the ongoing debate of last 4 for convenience vs full 9 for fraud prevention, it’s clear now where FinCEN stands. #onboarding #fraud #ai #artificialintelligence #fraudprevention #machinelearning

Alert - The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing this alert to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (GenAI) tools. This alert explains typologies associated with these schemes, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act (BSA). This alert is also part of the U.S. Department of the Treasury’s broader effort to provide financial institutions with information on the opportunities and challenges that may arise from the use of AI. Beginning in 2023 and continuing in 2024, FinCEN has observed an increase in suspicious activity reporting by financial institutions describing the suspected use of deepfake media in fraud schemes targeting their institutions and customers. These schemes often involve criminals altering or creating fraudulent identity documents to circumvent identity verification and authentication methods. The potential for deepfake media to be used in fraud schemes is one of several risks associated with emerging GenAI technologies that financial institutions and their customers may face. FIN-2024-Alert004.

Faster payments will lead to faster fraud. Alertspeed was created to make that statement untrue. With innovations in real-time: whole entity risk detection, threat priming, transactional speed response immediacy, contextual intelligence and machine supported human decision making, we are making faster payments safer payments. https://lnkd.in/eRwFjZf6 #FasterPayments #SaferPayments #APPFraud #RealTime #ContextualIntelligence #WholeEntity #FraudInterdiction #CustomerProtection

Detecting and preventing financial crime will always be difficult, but there is a lot of reason for optimism: the tools we have available today are well positioned to stop fraudsters in their tracks—even when they are using gen AI to fuel their attacks. However, some banks assume they need to fight fire with fire — or gen AI-driven fraud with gen AI tools. Instead of banks using gen AI as a precision tool, they can use it as one piece of a much larger, multi-layered approach to fraud prevention. I really enjoyed our CEO Tommy Nicholas take on the subject in this piece for American Banker and highly suggest you give it a read! https://lnkd.in/gRWt7kg7 #fraud #banking #fintech