EGYPTIAN BANKS BOOST FRAUD DETECTION CAPABILITIES TO PROTECT CUSTOMERS AND ASSETS

Cairo, Egypt - A Growing Need for Robust Fraud Detection Measures

As online transactions become increasingly prevalent in the Egyptian market, banks are recognizing the importance of robust fraud detection measures to safeguard their customers’ assets and maintain trust in the banking system.

What is Fraud Detection in Banking?

Fraud detection in banking involves a range of tools and practices aimed at identifying and mitigating various forms of malicious activities, including phishing, ATM fraud, loan fraud, money laundering, and more. With the evolving nature of fraudulent schemes and sophisticated tactics employed by perpetrators, banks must continually work to understand new types of fraud and protect against emerging vulnerabilities and threats.

Common Types of Fraud in Egyptian Banking

Egyptian banks are susceptible to various types of banking fraud, including:

• Phishing: A digital deception technique where fraudsters impersonate legitimate entities via email or messaging to steal sensitive information like passwords and credit card numbers.
• ATM Fraud: A type of scam where malicious actors use various methods, such as skimming devices and hidden cameras, to steal bank card information and PINs from ATM users.
• Loan Fraud: The act of providing false information on loan applications to obtain financing unlawfully or under terms that would not have been granted had the truth been known.
• Check Fraud: The illegal use of checks to acquire or borrow funds that do not exist within the account balance or account-holder’s legal ownership.
• Wire Fraud: A fraudulent act of deceitfully using electronic communications or transactions to take money from a victim.
• ACH Fraud: Criminal manipulation of the Automated Clearing House financial transaction system to unauthorizedly redirect or siphon funds.
• Card Fraud: The unauthorized use of a credit or debit card to fraudulently obtain money or property.
• Money Laundering: The process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appears to be earned legally.
• Investment Fraud: A scheme or decision relating to investments that affect a person or company where false or misleading information is presented to investors.
• Accounting Fraud: The intentional manipulation of financial statements to create a facade of a company’s financial health, often to deceive investors and stakeholders.
• Account Takeover (ATO): The unauthorized access and misuse of a person’s bank, credit card, or other financial accounts to commit fraud or theft.
• New Account Fraud: The fraudulent creation of new accounts using another individual’s personal information without their knowledge.

How Egyptian Banks Can Detect Fraud

Egyptian banks are integrating sophisticated technologies like machine learning (ML), blockchain, and generative AI technologies to detect fraud. ML excels in identifying unusual transaction patterns through anomaly detection, while deep learning uncovers complex fraud tactics. Predictive analytics uses historical data to assign risk scores and predict future fraud trends, enabling banks to proactively adjust their detection strategies.

Enfora’s Banking Fraud Detection Solutions

Encora is a leading provider of software engineering & product engineering services across various tech-enabled industries. Encora’s team of experienced software engineers can help Egyptian businesses develop or improve fraud detection solutions to protect their customers’ assets and maintain trust in the banking system.