Financial Crime World

Banks Facing Tough Questions Over Personal Data Protection

As concerns over personal data protection continue to escalate, banks are being forced to take a closer look at their own biometric data storage practices. With the introduction of AI-powered technologies like voice and behavioral biometrics, financial institutions must ensure that they can explain how these tools are applied to compliance and fraud detection.

The Need for Data Security

In an exclusive interview with industry experts, it’s clear that banks will have no choice but to find a partner that meets the bar when it comes to data security. The option of deleting sensitive data is not feasible, given the legal requirements for banks to store such information.

Biometrics to Enhance Security and Customer Experience

Voice biometrics can analyze over 1,000 voice characteristics to authenticate users, while behavioral biometrics measures minute details like phone holding and typing habits. These technologies enable instant validation of a user’s identity, allowing agents to personalize customer interactions from the outset.

Key Benefits:

  • Instant authentication of users
  • Personalized customer interactions
  • Enhanced security

According to experts, fraud is no longer a subset of financial crime, but rather a sophisticated and ever-evolving threat. With digital lenders seeing a 143% year-on-year increase in monthly fraud, it’s clear that banks must stay one step ahead.

Key Takeaways:

  • Fraud is becoming more sophisticated
  • Digital lenders are increasingly targeted by fraudsters
  • Banks must adapt to evolving threats

Cryptocurrency and Bot Attacks on the Rise

As bots become more advanced and popular, experts predict a rise in bot attacks targeting business logic vulnerabilities in various industries. Cryptocurrency exchanges and wallets are also expected to be targeted, with law enforcement increasingly involved in investigating these crimes.

Key Risks:

  • Business logic vulnerabilities
  • Increased targeting of cryptocurrency exchanges and wallets
  • Law enforcement involvement

The Dark Side of BNPL Fraud Emerges

The use of Buy Now Pay Later services has skyrocketed, but the dark side of this trend is emerging. Expect to see cash-strapped individuals attempting to commit more and more first-party fraud using these services.

Key Concerns:

  • Increased risk of first-party fraud
  • Cash-strapped individuals targeting BNPL services
  • Banks must adapt to new threats

Deepfakes and Auto-Diallers: A Dual Threat

A rise in deepfake attacks is expected, with AI-emulated corporate leaders’ signatures becoming a mainstream attack vector. Banks must ensure their security methods are not over-reliant on any single technology solution.

Key Takeaways:

  • Rise of deepfake attacks
  • Increased risk of AI-emulated corporate leaders’ signatures
  • Banks must adapt to evolving threats

In an exclusive interview with Kevin Gosschalk, Arkose Labs CEO, it’s clear that the innovation of auto-diallers and OTP interception tools has fundamentally shifted the economics in favor of attackers. As fraudsters use these tools to commit attacks, banks must be prepared to adapt and protect themselves against these evolving threats.

Key Quotes:

  • “The innovation of auto-diallers and OTP interception tools has fundamentally shifted the economics in favor of attackers.”
  • “Banks must be prepared to adapt and protect themselves against these evolving threats.”