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Liechtenstein Banks Tackle Fraud Detection in a Digital Age

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Liechtenstein’s financial institutions are facing a growing challenge in detecting and preventing fraud as consumers increasingly turn to digital banking. Despite the country’s small size, its banks are major targets for cyber attacks and sophisticated scams.

One Step Ahead of Fraudsters

To combat this threat, Liechtenstein’s FIs must implement robust risk management strategies and authentication policies that can keep pace with the evolving nature of online threats. This requires a combination of cutting-edge technologies and traditional security measures, as well as a deep understanding of customer behavior and risk patterns.

Two Main Approaches to Combatting Fraud

Liechtenstein’s banks take two main approaches to combatting fraud: detection and prevention.

• Detection: They use advanced analytics and machine learning algorithms to identify suspicious activity and flag potential threats.
• Prevention: They implement preventative measures such as multi-factor authentication and biometric verification.

Four Steps to Prevent Fraud in Banking

Gemalto IdCloud’s risk management services provide a comprehensive solution for detecting and preventing fraud in banking. By harnessing the power of four layers of intelligence, FIs can create a dynamic profile of each customer and identify potential threats before they occur:

Four Layers of Intelligence

1. Device Intelligence: Analyzes device activity and behavior.
2. Behavioral Biometrics: Analyzes user behavior and interactions with devices and networks.
3. Behavioral Analytics: Analyzes user behavior, device activity, and network interactions to provide a real-time risk assessment.
4. Trust Consortium: Analyzes the trustworthiness of users based on their behavior and transactions.

Enhanced Onboarding with Risk Management

Liechtenstein’s banks are also turning to risk management technologies to strengthen their identity proofing process security during digital onboarding. Gemalto IdCloud’s risk management services apply advanced analytics and machine learning algorithms to analyze the environment and user behavior, detecting suspicious activities in real-time.

Benefits of Enhanced Onboarding

• Prevents ID fraud
• Reduces total cost of ownership by avoiding additional checks and abandoning high-risk enrollments at an early stage

Enhanced Access with Risk Management

FIs can also use smart risk management services to analyze the risk level of every single customer transaction, providing a recommendation on the most appropriate authentication method. This helps FIS make informed decisions about authentication and transaction processing, minimizing the risk of account takeover fraud.

Combining Advanced Security Measures

By combining these advanced security measures with traditional verification processes, Liechtenstein’s banks can provide a seamless user experience while maintaining robust protection against cyber threats.

Regulatory Compliance in Liechtenstein

Gemalto IdCloud’s risk management services are designed to meet the latest security requirements of regulations such as PSD2 and FFIEC. The solution provides real-time monitoring of authentication and transaction process risk, as required by PSD2’s regulatory technical standards (RTSs).

Benefits of Regulatory Compliance

• Helps FIs comply with data privacy regulations such as GDPR in Europe and CCPA in the US
• Reduces compliance challenges associated with processing data across multiple vendors for risk assessment