We live in an increasingly complex world today, that is constantly being disrupted by the latest technologies. Back in the days the only security measures necessary to prevent fraud were physical security of money vaults and banks branches. But with rapid increase in digitization of all services (and financial services are no exception), security is also moving rapidly from physical towards digital.
Today financial services of banks can be accessed by customers via numerous digital channels, such as ATM’s, POS’es, digital banking, payment cards and other. Over some of them banks have some form of physical control (like over ATM’s and POS’es), while over others (like digital banking, mobile wallets, payment cards) banks have almost no control and cannot ensure adequate physical security of these devices. Furthermore, in the last few years hundreds of FinTech service providers have emerged and are bypassing physical interaction with the customer at all, providing digital-only financial services through web and mobile channels. These digital-only financial services cannot ensure adequate physical security on the client’s side, hence creating hefty opportunities for fraudsters to exploit such vulnerabilities and successfully breach clients’ devices for their own gains.
And fraud industry is not a small deal at all. According to Statista, in UK alone total losses from various fraudulent activities with online banking accounts constituted 121.4 millions GBP, while losses are even bigger for payment cards – 566 millions GBP, according to Statista.
So is there a better way to prevent some of those losses and put this money to a better use? Are there any ways to prevent fraud, that are digitally-focused and effective even when financial institution has no control over physical security of the devices used?
One of D8’s flagman products is StrongHold Risk Management, which is a behavior-based risk management system that can in real time detect and block any fraudulent activity that fraudster might attempt with the customer’s online banking account or payment card.
StrongHold Risk Management is a server-side software product, that is deployed in the clients’ infrastructure and integrated with any number of data sources (any IT system can act as a data source, for example online banking server, payment cards processing system, etc.) and after that in real time receive data about any activity within the source system (any actions taken with the customer’s online banking account, information about the payment card transaction, etc.).
StrongHold then analyses this activity and if it detects some activity with a high probability of being a fraud, it takes one of the preventive actions, such as temporarily stopping this activity or blocking this and all further similar activities. All of this happens in real time, not impacting customer experience with using your digital services in any way.
One of the biggest advantages of using StrongHold instead of any other fraud detection systems is that StrongHold identifies and prevents fraud based on the behavioral patterns of each individual customer, not by some stereotypical information (like all transactions from Burkina Faso should be banned, for example).
Continuing the last example, we might have a business customer, who regularly travels to Burkina Faso for business and uses his/her payment card regularly for payments there. Other fraud detection systems, that are configured based on stereotypical information, would require this customer to explicitly share his/her reasons for visiting Burkina Faso with his/her bank, explaining how often he/she plans to visit Burkina Faso, etc. After that bank’s representative would have to manually override the fraud system logic to allow for such exceptions.
StrongHold, on the other hand, will take this specific customer’s behavior into consideration when conducting analysis, and will make any adjustments automatically, without customer even noticing this. As a result, customer experience of using your services will be seamless, without him/her even noticing that his/her behavioral pattern is meticulously analysed somewhere deeply in the back-end.
At D8 we have always followed flexible approach in the development of our systems, because we understand that each of our clients’ case is unique and our systems need to be adapted to each case individually.
Therefore StrongHold is very flexible in its’ integration and there is absolutely no limits to what data formats and data sources can be connected to the system.
Data format is specified individually for each system that StrongHold will be integrated with. As for data sources, any system that you currently have can act as a data source – if you want to analyze activity in your remote banking system or payment cards system – we can integrate StrongHold with those systems. If you store customer data in your CRM, we can integrate with this CRM to import and synchronize data in real time.
There are numerous benefits of using StrongHold for real-time data analysis of activity in your payment systems:
How much of your current revenue do you write off on fraud?
In 2017, systems like StrongHold saved banks and financial institutions in the UK more than 984 millions GBP, according to Statista. Just imagine that only 1% of these savings could be attributed to your business – that’s 9.84 million GBP. With such cost savings, it would take you less than 7 days to fully recoup your investment in setting up StrongHold Risk Management!
If you’d like to know more about StrongHold and how it could help your business save fraud expenses, fill in the form below and you’ll be contacted by one of our representatives on short notice. If you’d like to learn more about the features of StrongHold, just download product factsheet, available below.
provides you with the white-label remote banking platform, that will help you launch your own online and mobile banking as soon as possible.
helps you automate a great deal of your KYC/CDD processes, ensures continuous monitoring of all transactions with real-time alerts, as well as produces necessary regulatory reports.