Financial Crime World

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Liechtenstein’s Financial Institutions Rethink Fraud Prevention Strategies

In a move to stay ahead of sophisticated cyber attacks, banks and financial institutions (FIs) in Liechtenstein are revisiting their fraud prevention strategies. The country’s FIs have faced a significant increase in complex cyber threats, with fraudsters targeting sensitive customer data.

The Challenge: Balancing Security and User Experience

As more consumers turn to digital banking, FIs must balance the need for robust security measures with the requirement to provide seamless user experiences. This is especially challenging given the dramatic rise in mobile banking fraud, which grew by 92% in Liechtenstein in 2019 alone.

Four-Step Approach to Preventing Fraud

To address this challenge, Gemalto IdCloud’s risk management services employ a four-layered approach:

1. Device Intelligence

  • Identifies recurring devices
  • Detects high-risk networks and locations
  • Spots device anomalies that indicate fraudulent activity

2. Behavioral Biometrics

  • Analyzes inherent user behavior, such as typing patterns, mouse movements, and device holding habits
  • Creates an individual profile to detect unusual behavior

3. Behavioral Analytics

  • Examines user habits at individual and population levels
  • Detects out-of-the-ordinary transactions and suspicious behavior

4. Trust Consortium

  • Evaluates billions of events to help FIs know who to trust, even if they are new customers

Enhanced Onboarding with Risk Management

By adding identity affirmation, FIs can strengthen their identity proofing process security and reduce the risk of ID fraud during digital onboarding.

Complying with Regulations

Gemalto IdCloud’s risk management services meet the latest security requirements of regulations such as PSD2 and FFIEC, providing real-time monitoring of authentication and transaction processes. This ensures that FIs in Liechtenstein can comply with stringent data privacy regulations like GDPR and CCPA.

Conclusion

In a rapidly evolving threat landscape, FIs in Liechtenstein must adapt their fraud prevention strategies to stay ahead of sophisticated cyber attacks. By implementing Gemalto IdCloud’s risk management services, they can balance security and user experience while ensuring compliance with the latest regulations.