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Yemen’s Banks Rely on Fraud Detection Methods to Combat Financial Risks

In today’s digital age, Yemen’s banks and financial institutions (FIs) are facing a daunting task of balancing robust security measures with seamless customer experience. With the increasing use of digital banking services, FIs in Yemen are employing advanced fraud detection methods to stay ahead of fraudsters and reduce financial costs and reputational damage.

Combating Fraud: Detection vs Prevention

According to industry experts, Yemeni FIs adopt two broad approaches to combating fraud: fraud detection and fraud prevention. While slightly different technologies and strategies are used, both detection and prevention tools are deployed hand-in-hand to protect assets, systems, and customers.

The Challenge of Detecting Fraud while Providing a Frictionless Customer Experience

The challenge for Yemen’s FIs lies in detecting fraud while providing a frictionless customer experience. With more consumers turning to digital banking, they expect to be able to onboard and access services seamlessly on any connected device. However, this trend also presents a significant threat as fraudsters continually challenge the security measures put in place by FIs.

The Need for Adaptive Risk Management Strategies

A recent report by UK Finance found that even though FIs in the UK do a good job of preventing about 60% of all attempted fraud, losses from mobile banking fraud increased rapidly, growing by 92% in 2019 alone. This trend is expected to continue as risk management strategies and authentication policies need to adapt to cope with the increasing number of connections, creativity of fraudsters, and new regulations.

A Holistic Approach to Security

To combat this challenge, Yemen’s FIs can take a holistic approach to security, combining risk management technologies with strong customer authentication (SCA) to enhance the user experience (UX) and security for all digital banking use cases. One such example is Gemalto IdCloud, which uses four layers of intelligence to identify high-risk activities and create a dynamic profile of each event.

The Four Steps to Prevent Fraud in Banking using Gemalto IdCloud

• 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, mouse movement, and device holding, to create an individual profile.
• Behavioural Analytics: analyses user habits at individual and population levels to detect unusual behaviour.
• Trust Consortium: evaluates billions of events to help determine who to trust, even if they are new to the system.

Enhanced Onboarding with Risk Management

By combining these intelligence layers with RBA and SCA, Yemen’s FIs can create a dynamic profile of each event that protects customers and businesses while providing a seamless customer experience. Additionally, using smart risk management services to analyze the risk level of every single customer transaction and provide real-time recommendations for authentication methods can help FIs make the right choice to minimize risk and prevent account takeover fraud.

Conclusion

In conclusion, Yemen’s banks and financial institutions are employing advanced fraud detection methods to stay ahead of fraudsters and balance robust security measures with seamless customer experience. By adopting a holistic approach to security and using solutions like Gemalto IdCloud, FIs can provide a secure and frictionless experience for their customers while complying with the latest security regulations.