Switzerland’s Banks Battle to Stay Ahead of Fraudsters

An Exclusive Interview with NetGuardians CEO Joël Winteregg

As the world becomes increasingly digital, fraudsters are adapting their tactics at an alarming rate. In this exclusive interview, NetGuardians CEO Joël Winteregg shares his insights on the greatest risks facing Swiss banks and the innovative solutions they can implement to stay ahead of the scammers.

The Growing Threat of Fraud

Fraud attempts have become a matter of “when” rather than “if”. It’s crucial for banks to detect and block attacks before they occur. But where do these threats come from? Winteregg reveals that 70% of global fraud is committed by insiders, with employee-related incidents resulting in significant financial losses.

Insider fraud: 70% of global fraud is committed by employees
Employee-related incidents result in significant financial losses

Recent high-profile cases have highlighted the importance of combating fraud. For example, a former wealth manager allegedly stole CHF 3 million from customer accounts over two years.

External Threats on the Rise

External threats such as malware attacks, phishing, and social engineering continue to rise. Phishing sites are particularly prevalent in Switzerland, with over 4,500 reported in 2017 alone. Social engineering tactics involve using information gathered online to impersonate officials and trick victims into revealing sensitive information.

Malware attacks: a growing concern for Swiss banks
Phishing sites: over 4,500 reported in Switzerland in 2017
Social engineering: criminals use online information to trick victims

Bill swap fraud, where criminals manipulate electronic invoices, is another growing concern. These threats require proactive detection and prevention measures.

Proactive Detection and Prevention

The key to combating these threats lies in proactive detection and prevention. NetGuardians’ CEO believes that profiling and machine learning technologies are crucial in identifying unusual transactions before they occur.

Profiling: analyzing customer behavior, including online habits and device location
Machine learning: detecting anomalies in real-time

Augmented Intelligence and Human Oversight

However, Winteregg notes that even the most advanced AI solutions require human oversight to ensure accurate decision-making. Augmented intelligence combines technology with human intuition to make better-informed decisions.

Augmented intelligence: combining technology and human intuition
Human oversight: ensuring accurate decision-making

Data Collection and Storage Strategies

To implement these solutions, banks must consider data collection and storage strategies. NetGuardians’ technology leverages existing bank data from core systems, ensuring seamless integration.

Data collection: leveraging existing bank data
Data storage: ensuring seamless integration with core systems

The Future of Fraud Detection

Winteregg predicts that AI-based solutions will become even more sophisticated in the future. Markov chains, social network data, and behavior-based biometrics are just a few areas of innovation that promise to revolutionize the fight against financial crime.

AI-based solutions: becoming increasingly sophisticated
Future innovations: Markov chains, social network data, and behavior-based biometrics

Conclusion

In an industry where trust is paramount, staying ahead of the scammers has never been more crucial. With NetGuardians’ cutting-edge solutions and forward-thinking approach, Swiss banks can rest assured that they have the tools needed to safeguard their customers’ accounts and reputations.