Fraud and data theft is, unsurprisingly a significant headache for organizations, and particularly so for banks and insurance companies. Since 2005, there have been over 10 billion data records compromised in 8,000 breaches in the USA alone, that’s the equivalent of 1-2 a day. While a major positive for many consumers and organizations around the world, the Internet has also created opportunities for fraudsters and data thieves, who work hard to steal from financial institutions. The answer seemingly would be for these organizations to simply put in place measures to spot and stop the fraudsters as they’re attacking. However, that is not always possible
In 2017 alone, intrusion attempts increased by 45% versus the previous year, and between 2012 and 2016 such attacks rose by 240%. The astronomical growth in these attacks demonstrates not only the need to identify them, but to shut them down and stop future cases occurring.
However, the problem doesn’t just lie in the theft of the data itself, but in what the criminals do with it, namely cloning identities. With access to such large amounts of stolen personal information, fraudsters are able to adopt personas and attempt to carry out illegal transactions, including taking control of bank accounts that aren’t theirs.
But, in today’s hyper-connected world, consumers demand instant access to their accounts and insurance policies, and those financial institutions that don’t offer it will lose out on valuable revenue, despite the multitude of channels it also creates that thieves can exploit. As a result of what is effectively a series of open doors, it’s difficult to accurately assess the costs associated with these fraudulent activities, though they are known to be extensive.
It’s therefore imperative that the institutions make use of their full arsenal to fight the fraudsters to protect themselves and their customers. One way of doing this is by using analytics and business intelligence solutions that can help teams to identify activity that doesn’t look right. In organizations that are 100% cloud-based, accessing the data is easier and helps stop the criminals in their tracks. However, given that 70% of Fortune 500 companies, 92 of 100 of the largest banks and all top 10 of the largest insurance organizations rely on legacy mainframe systems, access to data on these systems ideally needs to be just as fast so they can respond to threats quickly.