With the lockdown caused by #Covid19 we would all be forced to use e-channels for our banking transactions on a more frequent bases. It is on that note that I will like to do a thread on bank fraud . @ChiefOjukwu . @the_davidatta . @accessbank_help . @gtbank . @UBAGroup . @UNIONBANK_NG

1. What is bank fraud? Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.

2. In many instances, bank fraud is a criminal offense. According to data provided by Association of Certified Fraud Examiners (ACFE) Financial Institutions lost at least their 5% of their annual revenues in fraud incidents every year. While this number goes up to 7% in Nigeria.

3. Another statistics is provided by ISMG Group: According to the survey on their portal, http://www.bankinfosecurity.com , last year most common type of fraud was Card Fraud, Information Thefts and ATM Skimming, Account takeover and mobile fraud.

4. Only 11% of fraud are detected real-time, 67% of frauds are detected in one day or more. After the loss has been realized & fraudsters are long disappeared & gone. ISMG's statistics show that bank fraud is on an every year with more channels of banking coming under attack.

5. A question might then arise. Why have all the banks not implemented Anti-fraud solutions to mitigate this rising scourge of bank fraud? Well, it may come as a surprise that there are some existing barriers that prevents most banks from implementing these Anti-fraud solutions,

6. though these solutions are not just a luxury but a necessity to save the banks and the users from loss. So what are these barriers?

Top Barriers To Improving Enterprise Anti-fraud:

Technical barriers
Customer experience
Cultural barriers
Regulatory barriers

7. Technical barriers:

- controls do not talk to one another among different parts of the organization.

- Integration capabilities to existing bank's infrastructure.

- Scalability.

8. Customer experience – Companies do not want to add any new anti-fraud controls that might in any way impede the customer experience with the organization as each transaction is expected to happen within a matter of seconds.

9. Cultural barriers - there is no easy way to get a consolidated view of the customers' activities across all of the channels while adoption to new tech is also low.

Studies have shown that traditional banks find it more difficult to adopt new tech unlike Fintech startups.

10. Regulatory barriers - regulations impede the ability to share sensitive information across different offices and systems. This also affects the passing of data required to predict and prevent fraud.

11. It is all not doom and gloom as certain banks have implemented some Anti-fraud solutions, but once more these solutions are not getting the job done. And another questions arises; why are these present anti-fraud solutions not getting the job done?

12. The answer lies in the fact that most available anti-fraud solutions today lack certain features to allow them effectively combat the rising rate of fraud. This is due to the increase in banking channels, thus creating more loopholes to cover.

13. Most Lacking Features of Current Anti-fraud Tools:

Limited Analytics, No Real Time Monitoring & Decision Making, Limited or No Integration with Systems, Enterprise Multichannel Anti-fraud Approach & Impeding Customer Experience

14. Limited Analytics: Most current anti-fraud solutions systems allow for only limited analytics. This might be able to study only certain data such as transaction history, while leaving out behavioral history or channel history.

15. Without a holistic approach to fraud analytics these anti-fraud solutions cannot be as efficient as required.

16. No Real Time Monitoring & Decision Making: The systems may exist in a patchwork that inhibits any real-time monitoring & decision-making.

With a lack of automated processes, it makes real-time monitoring impossible to achieve thus giving the fraudster more time to operate.

17. Limited or No Integration with Systems: Certain organizations may be willing to integrate anti-fraud solutions for web transactions, but not for POS. Some may choose to do so for POS but not for the bank's core operating system.

18. Some may choose to combat user/account holder fraud, but not internal fraud by the bank's own employees. Without an end to end solution, it is almost impossible to combat this rising case of bank fraud.

19. Enterprise Multichannel Anti-fraud Approach: Where organizations have deployed one anti-fraud solution or the other, we have observed that these organization & their systems are usually in silos, so they have no view of the customers' activities across the entire enterprise.

20. Where there is no correlation from web to over the counter, POS, mobile app or sms banking. Without an OMNI channel approach to fraud, it is difficult to track fraud being carried out between multiple channels.

21. Impeding Customer Experience: It has also been observed that some of the present day anti-fraud tools can impede the customer's experience with the company.

22. These can arise from increased multiple checks to the customer to elongated turnaround time for each transaction, which usually ends up leaving the customer frustrated.

23. The solution to these challenges will be for the banks to all implement a multichannel anti-fraud solution with the capabilities of solving all these problems while a providing seamless experience and I believe we have that at http://indrecirkle.com .

24. Why http://indrecirkle.com ?

We have worked alongside Europe's leading software design companies to develop Transactional Fraud Detection and Prevention Solution. Our Anti-fraud solution is a Multi-Channel/Omni platform, while also being Customer Centric

25. With the understanding that it may not be easy for a customer to check fraud, we have created the opportunity to monitor customer transactions from different channels or products within a single platform. Digital Banking, Telephony Banking, Card Payment Systems, Merchants and

26. ATM’s Branch Transactions (Transfers, withdrawals, orders, information changes (address, telephone) etc.), Internal Fraud Detection Solution for misuse in employee transactions and Transactions of different Channels can be monitored within a single platform.

27. The idea is to have a platform with Unlimited Analytics, Real-Time monitoring, Integration flexibility & scalability

28. Unlimited Analytics: We have gone as far as Advanced behavioral and risk based analytics; Our Statistical profiling engine provides the ability to make statistical analyses based on individual customer behavior. Differentiate the businessman from a student.

29. Real-Time monitoring: Our solution Processes transactions in Real-Time and makes accurate decisions by help of behavioral customer statistics, while automating action.

30. Integration flexibility & scalability: Our anti-fraud solution Strongly Integrates with internal & external Systems. We are capable of Integrating with SMS & email servers, automatic card, account or password blocking; Integrations can also be done with IVR & IVN Systems.

31. Our systems are also automated allowing it to take multiple and conditional actions for a single transaction. For example- If the transaction is suspicious, Call the customer or ask a second authentication,

32. if customer do not respond to the call or provide second authentication, temporary block the account, and send SMS. If customer responds as fraud or gives wrong authentication. Fraud block the account and add to black list.

33. Enterprise Multichannel Anti-Fraud Approach: We support all Channels and products which is offered to your customers. This is always the best approach for all large, mid-sized and small banks.

34. Solution to Regulatory barriers: We can comply easily with your banks anti-fraud policies, product and services variety strategies. While also updating compliance on regulators such as @cenbank

35. Omni Channel/Multi channel approach: You can monitor customer multi-channel activities with a single platform. Very high fraud detection performance on multi-channel social engineering. For example, if the customer’s phone is in the UK,

36. there is no way he should be withdrawing on at ATM in Lagos. Keystroke check can be implemented. We also support Multi-Institutional Multi Currency Environments for Card, Merchant/ATM or Payments Service Providers.

37. Internal Audit assistance: In same solution, we are able to provide audit proof solution, Logs every transactions of the users.

Maker and Checker: Large scale of access and authorization levels for users or user groups

38. We at http://www.indrecirkle.com  have made it our goal to provide solutions to the challenges faces by today's demanding businesses while scaling up predict the challenges of tomorrow and we have done this in collaboration with some the best global solution providers.

39. Our advice remains that all the banks will need to implement one OMNI/Multichannel Anti-fraud solution or the other with authentication based on user preference.

I hope I have been of help today. . @BryteDude . @DrOlusesan