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Fraud Detection and Prevention in Finance Takes Center Stage in Faroe Islands
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The financial institutions in the Faroe Islands are increasingly relying on advanced fraud detection and prevention technologies to secure their assets, systems, and customers. As the industry shifts towards digital channels, banks and financial institutions (FIs) must stay ahead of sophisticated cyber attacks and fraudulent activities.
The Growing Concern of Fraud
According to a recent report by UK Finance, even though FIs in the UK are effective in preventing about 60% of all attempted fraud, losses from mobile banking fraud have increased rapidly, growing by 92% in 2019 alone. This trend highlights the need for FIs to adapt their risk management strategies and authentication policies to cope with the increasing number of connections, creativity of fraudsters, and new regulations.
A Multi-Layered Approach to Security
In the Faroe Islands, banks are employing a multi-layered approach to security, combining:
- Device intelligence
- Behavioural biometrics
- Behavioural analytics
- Trust consortiums
to monitor each risk, act of fraud, and cyber attack. This holistic strategy enables FIs to identify high-risk activities before harm is done, creating a dynamic profile of each event that protects customers and businesses.
Gemalto IdCloud’s Risk Management Services
Gemalto IdCloud’s risk management services offer identity affirmation and risk-based authentication (RBA) solutions that harness the power of four layers of intelligence:
- Each layer transparently analyses user and environment activities from different perspectives to identify high risks before any harm is done.
- By combining RBA with strong customer authentication (SCA), FIs can enhance the user experience (UX) and security for all digital banking use cases.
Strengthening Identity Proofing Process Security
The Faroe Islands’ financial institutions are also turning to risk management technologies to strengthen their identity proofing process security, reducing the total cost of ownership by:
- Avoiding additional checks
- Abandoning high-risk enrolments at an early stage
Real-Time Monitoring and Compliance
In compliance with the latest security regulations such as PSD2 and FFIEC, Gemalto IdCloud’s risk management services offer real-time monitoring of the authentication and transaction process risk. The solution also meets the requirements for stronger fraud prevention, helping FIs meet the challenge of combating increasing cyber-attacks and growing levels of fraud.
Data Privacy Regulations
As data privacy regulations like GDPR in Europe and CCPA in the US become more stringent, Gemalto IdCloud has been designed to ensure compliance with these regulations, processing sensitive customer data securely and transparently.
Conclusion
With the right fraud detection and prevention strategies in place, FIs in the Faroe Islands can provide a frictionless customer experience while safeguarding their assets and reputation. By leveraging advanced technologies like Gemalto IdCloud’s risk management services, financial institutions can stay ahead of the evolving threats and ensure a secure digital banking experience for customers.