Financial Crime World

GUINEAN BANKS EMBARK ON BATTLE AGAINST FINANCIAL CRIMES

Conakry, Guinea - A Growing Concern for Banking Fraud

As the financial sector in Guinea continues to grow, concerns about banking fraud are on the rise. A recent survey reveals that 52 percent of banks in the country are experiencing high levels of concern about fraud, making it a top priority for institutions to detect and prevent such crimes.

Understanding Banking Fraud

Banking fraud is a type of financial crime that involves using illegal means to obtain money or assets owned by banks or customers. It can take many forms, including:

Types of Banking Fraud

  • Identity Theft: when a bad actor steals a consumer’s personal information to take money or open credit accounts
  • Check Fraud: writing bad checks, forging information, or stealing and altering someone else’s check
  • Credit Card Fraud: making purchases or getting cash advances in the name of an unsuspecting consumer
  • Phishing: using email or text messages to steal personal and account information
  • Direct Deposit Account Fraud: monetizing stolen information to open new accounts and divert funds from payroll, assistance programs, and more

Toughest Frauds to Detect

According to a survey, 33 percent of businesses in Guinea encountered account takeover, first-party fraud, third-party fraud, and synthetic identity fraud last year. Without proper detection and prevention techniques, it’s difficult for banks to keep up with these schemes.

Preventing Banking Fraud in Guinea

To stay ahead of the curve, financial institutions in Guinea must invest in new fraud prevention technologies. Emerging trends include:

Advanced Detection Methods

  • Use of Artificial Intelligence (AI) and Machine Learning (ML): to identify patterns consistent with fraudulent activity
  • Behavioral Analytics and Biometrics: to flag riskier users for additional authentication and verification
  • Leveraging Additional Data Sources: such as credit reports, to better detect signs of identity theft and synthetic identities

Experian’s Interconnected Approach

Experian’s interconnected approach to fraud detection in banking combines data, analytics, fraud risk scores, device intelligence, and more to track and assess various activities. This allows financial institutions to determine where additional authentication, friction, or human intervention is required.

By implementing these strategies, banks in Guinea can balance risk mitigation with the customer experience, ensure seamless interactions across platforms for known consumers, leverage proper identity resolution and verification tools, and recognize good consumers while applying the right amount of fraud mitigation techniques to riskier scenarios.