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Bhutan’s Banks Tackle Fraud Detection with Advanced Technologies

In a bid to reduce the risks associated with financial fraud, banks in Bhutan are increasingly adopting cutting-edge technologies to detect and prevent fraudulent activities. With the rise of digital banking and mobile transactions, the country’s financial institutions face a growing threat from sophisticated cyber attacks.

The Growing Threat of Financial Fraud

According to a recent report by UK Finance, even though Bhutanese banks do a commendable job in preventing fraud, losses still pose a significant threat. In 2019 alone, losses from mobile banking fraud increased rapidly, with a staggering growth of 92%. This trend necessitates the adaptation of risk management strategies and authentication policies to cope with the increasing number of connections and creative fraudsters.

Combating Financial Fraud: Detection and Prevention

Bhutan’s banks are taking two broad approaches to combatting fraud:

• Detection: Using advanced technologies to identify attempts by fraudsters to access an account.
• Prevention: Implementing tools to stop attempts by fraudsters to access accounts.

While slightly different technologies and strategies are used, detection and prevention tools are deployed hand in hand.

The Challenge of Balancing Security and User Experience

The challenge for Bhutan’s banks lies in detecting fraud without compromising the user experience. With more consumers turning to digital banking, they expect seamless onboarding and access to their finances on any connected device. However, this also means that financial institutions must implement robust security measures to protect sensitive customer data.

Gemalto IdCloud: A Risk Management Solution

To address this challenge, Gemalto IdCloud risk management services are being used by Bhutan’s banks to identify high-risk transactions in real-time. The service employs four layers of intelligence:

• Device Intelligence: Identifies recurring devices accurately, detects high-risk networks and locations, and spots device anomalies that indicate fraudulent activity.
• Behavioural Biometrics: Analyses inherent user behaviour, such as typing patterns and mouse movements, to create an individual profile.
• Behavioural Analytics: Analyzes user habits at individual and population levels to detect unusual behaviour.
• Trust Consortium: Evaluates billions of events to help banks know who to trust, even if they are new to them.

Enhancing Security with Risk-Based Authentication and Strong Customer Authentication

By combining Risk-Based Authentication (RBA) with Strong Customer Authentication (SCA), Bhutan’s banks can enhance the user experience while ensuring security for all digital banking use cases. Gemalto IdCloud has been designed for GDPR and CCPA compliance, making it an ideal solution for Bhutanese banks looking to meet the latest security regulations.

Conclusion

In conclusion, Bhutan’s banks are at the forefront of adopting advanced technologies to detect and prevent financial fraud. By leveraging Gemalto IdCloud risk management services, they can confidently identify high-risk transactions in real-time, protect sensitive customer data, and ensure a seamless user experience. As the threat from cyber attacks continues to grow, Bhutanese banks must remain vigilant and adapt their strategies to stay ahead of the curve.