Egyptian Banks Tackle Fraud Detection as Digital Banking Expands

Cairo, Egypt - In a bid to safeguard against increasingly sophisticated cyber threats, Egyptian banks are turning to advanced fraud detection methods and risk management strategies. As digital banking adoption continues to rise, the sector is facing a significant challenge in maintaining the security of customer data while providing seamless online experiences.

A Growing Concern: Fraud Detection

Mobile Banking Fraud Losses Surge

According to recent reports, mobile banking fraud losses in Egypt have been increasing rapidly, with a 92% surge in 2019 alone. This trend has prompted banks to reassess their risk management strategies and implement more automated authentication policies to cope with the rising number of connections and new regulations.

Four-Step Approach to Preventing Fraud

Using Gemalto IdCloud Risk Management Services

Gemalto IdCloud risk management services are being used by Egyptian banks to harness the power of four layers of intelligence:

1. Device Intelligence

Accurately identifies recurring devices
Detects high-risk networks and locations
Spots device anomalies that indicate fraudulent activity

2. Behavioural Biometrics

Analyzes inherent user behavior, such as typing patterns, mouse movements, and device holding habits
Creates an individual profile for future sessions

3. Behavioural Analytics

Examines user habits at individual and population levels to detect unusual behavior, including out-of-the-ordinary transactions

4. Trust Consortium

Evaluates billions of events to help banks know who to trust, even if they are new customers

Enhanced Onboarding and Access

Strengthening Security Processes with Identity Affirmation and Risk Management Technologies

By adding identity affirmation and risk management technologies, Egyptian banks can strengthen their security processes during digital onboarding and access phases. This approach helps prevent ID fraud, lowers total cost of ownership, and allows for real-time detection of suspicious activities.

Compliance with Latest Security Regulations

Gemalto IdCloud’s risk management services also enable Egyptian banks to comply with regulations such as PSD2 and FFIEC by providing real-time monitoring of authentication and transaction process risks. The solution is designed for GDPR and CCPA compliance, ensuring data privacy regulations are met while processing sensitive customer information.

As the digital banking landscape in Egypt continues to evolve, the adoption of advanced fraud detection methods and risk management strategies will be crucial in safeguarding against cyber threats and maintaining a seamless online experience for customers.