Financial Crime World

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Banking Fraud Prevention in Nicaragua: A Growing Concern

As the financial sector continues to evolve, so do the methods used by fraudsters to steal money and sensitive information. Banks and financial institutions (FIs) are constantly evaluating how to stay one step ahead of fraudsters by strengthening their fraud detection tools and implementing prevention solutions.

Challenges in Detecting and Preventing Fraud in Nicaragua

In Nicaragua, where digital banking is on the rise, FIs face a unique set of challenges in detecting and preventing fraud. With more consumers turning to online banking, they expect seamless access to financial services on any connected device. However, this increased digital activity also provides an opportunity for fraudsters to exploit vulnerabilities in security systems.

The Growing Threat of Mobile Banking Fraud

According to recent reports, even though FIs in Nicaragua do a good job of preventing about 60% of all attempted fraud, losses from mobile banking fraud have increased rapidly and grown by 92% in 2019 alone. This trend means that risk management strategies and authentication policies must adapt and become more automated to cope with the increasing number of connections, the creativity of fraudsters, and new regulations.

Gemalto IdCloud Risk Management Services: A Four-Layered Approach

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One solution is Gemalto IdCloud risk management services, which harness the power of four layers of intelligence to prevent fraud in banking. These layers include:

  • Device Intelligence: identifies recurring devices accurately, detects high-risk networks and locations, and spots device anomalies that indicate fraudulent activity.
  • Behavioral Biometrics: looks at inherent user behavior and analyzes how someone types, moves their mouse, or holds their device to create an individual profile.
  • Behavioral Analytics: analyzes user habits at individual and population levels to detect unusual behavior.
  • Trust Consortium: evaluates billions of events to help you know who to trust, even if they are new to you.

Enhanced Onboarding and Access with Risk Management

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By adding identity affirmation and smart risk management services to the access phase, FIs can analyze the risk level of every single customer transaction and provide recommendations on the most appropriate authentication method. This helps FIs to make the right choice to minimize risk and prevent account takeover fraud.

Compliance with Latest Security Regulations

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Gemalto IdCloud’s risk management services also comply with the latest security regulations such as PSD2 and FFIEC, providing real-time monitoring of the authentication and transaction process risk. The service is designed for GDPR and CCPA compliance, making it an attractive solution for FIs in Nicaragua.

Case Studies: Digital Onboarding in Banking

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For more information on how Gemalto IdCloud can help you prevent fraud and stay compliant with regulations, please visit our website or contact us directly.