Category Archives: Fraud & Security

Fraud & Security Two Advantages to Measuring Your Cybersecurity Posture

Cybersecurity posture score dial
Feb202017

Fighting cybercrime is often associated with preventing loss rather than generating a tangible benefit for your organization. However, understanding cybersecurity isn’t only about tackling the negative. If you understand your organization’s cybersecurity posture, you can not only prevent loss but also benefit in at least two ways: 1. Working with customers, partners and prospects. Customers worry about the cybersecurity risk you as a vendor could introduce to them. Tackling this issue can lead to lengthy questionnaires as part of their procurement process. However, with a good understanding of your cybersecurity posture, you have much of what is needed to provide the answers quickly and easily and in a way that is easy to understand. When you can demonstrate good practice and benchmark your cybersecurity posture with your competitors, you gain a competitive advantage. 2. Getting cyber insurance. Cyber-readiness is increasingly a necessity for organizations, but for insurance underwriters, evaluating an organization’s cybersecurity... [Read More]

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Fraud & Security Report from RSA: Bangers, Mash, Security and OpportUNITY

Feb162017

The RSA Conference has descended upon San Francisco’s Moscone Center, bigger and more energizing than ever. With security an agenda-topping concern of many CIOs in 2017, the fervor to fight cybercrime is at an all-time high. While there was a wide range of top-of-mind topics being discussed, two topics in particular continued to show growing interest – artificial intelligence and cyber insurance. More on that in a minute. The theme of this year’s RSA Conference was “The power of opportUNITY,” and we had plenty of opportunities in San Francisco to showcase FICO’s unity with security professionals and industry influencers on similar missions. Two of these events took place in informal settings designed to encourage networking and dialogue: The Cyber+IoT Bangers and Mash Roundtable Breakfast, held on Tuesday morning in conjunction with the San Diego industry organization CyberTECH. This panel session focused on “Securing the Smart City” and featured guests such... [Read More]

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Fraud & Security AI Meets AML: How the Analytics Work

Brain with AML highlihgted in neural pathways
Feb152017

The focus on financial crime, and the money laundering that funds terrorist attacks and other criminal activities, has forced the industry to look for smarter approaches. In the previous posts in this mini-series, TJ Horan noted that AI is the newest hope for compliance, and Frank Holzenthal explored the benefits that AI can bring to compliance officers. Now it’s my turn, and I’m going to explore the AI and machine learning technologies my team has integrated into the FICO TONBELLER Anti-Financial Crime Solutions. We have built on top of the FICO TONBELLER solutions using FICO’s battle-proven and patented artificial intelligence and machine-learning algorithms, which are used in FICO Falcon Fraud Manager to protect about two-thirds of the world’s payment card transactions. Industry experts have begun to realize the significance of analytics in combatting anti-money laundering. For instance, Aite Group LLC in its 2015 report Global AML Vendor Evaluation noted that... [Read More]

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Fraud & Security Stamping Out Financial Crime in Kathmandu

Feb132017

It’s not often that we enter a greenfield market that is just on the cusp of significant growth, but earlier this month FICO announced its entry in the Nepalese financial market. Nepal is looking to grow its economy and the government recently called for enhanced risk management compliance capabilities to help combat cases of financial crime in the country. “There is clear evidence that economic and financial crimes are some of the fastest growing offences globally,” said Dr. Chiranjivi Nepal, governor, Nepal Rastra Bank. “In Nepal, we can ill afford for these activities to drain our economy or to destroy business and banking confidence. It is therefore imperative that we match the technologies of sophisticated organized criminal groups, with advanced analytics to help banks closely monitor the vast volume of financial transactions they handle on a day-to-day basis.” With the perspective of regulatory compliance turning increasingly global, the Nepalese banks... [Read More]

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Fraud & Security AI Meets AML: How Smart Analytics Fight Money Laundering

Brain with AML highlihgted in neural pathways
Feb132017

In the last six months alone, I think I’ve read at least 1,000 Wall Street Journal articles on artificial intelligence (AI) and its technologic cousins: robots, drones and self-driving cars. Between those three things, I’m pretty sure most of the jobs humans have today will change. Some will even disappear. There is so much noise about AI and its ilk that, in my opinion, it’s important for us in the worlds of fraud and compliance to take a step back and focus on how we can implement this incredibly advanced technology in the context of our current technology and regulatory environment. For example, while it’s pretty cool how AI is now being leveraged to play poker and beat professionals in real games, it’s a distraction from the discussion of ways that AI can help right now, today, for real business challenges. One of the places where AI can make a... [Read More]

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Fraud & Security How Norvik Banka Fights Money Laundering in Latvia

Norvik Banka exterior photo
Feb092017

Bank regulators in Latvia have increased scrutiny on banks suspected of allowing money laundering, resulting in record fines and more bank audits. One of FICO’s customers, Norvik Banka, is taking an early lead in this fight, using the FICO® TONBELLER® Compliance Solutions to fight money laundering and financial crime. “We had been using an in-house system to comply with Latvian regulations around money laundering, and based on the latest AML audit we ran a tender with global AML IT providers, of which FICO TONBELLER provided the best fit for our organization,” says Oliver Bramwell, Chairman of the Board at Norvik Banka, which has the country’s widest network of branches and finance and accounting groups. “The FICO TONBELLER system will allow us to improve transaction control significantly, enhance transaction transparency and decrease the bank’s operational risks.” Mr Bramwell was interviewed for an article that appeared last week in Retail Banker International.... [Read More]

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Fraud & Security Two Ways to Gain from Measuring Your Cybersecurity Posture

Cybersecurity posture score dial
Feb072017

Fighting cybercrime is often associated with preventing loss rather than generating a tangible benefit for your organization. However, understanding cybersecurity isn’t only about tackling the negative. If you understand your organization’s cybersecurity posture, you can not only prevent loss but also benefit in at least two ways: 1. Working with customers, partners and prospects. Customers worry about the cybersecurity risk you as a vendor could introduce to them. Tackling this issue can lead to lengthy questionnaires as part of their procurement process. However, with a good understanding of your cybersecurity posture, you have much of what is needed to provide the answers quickly and easily and in a way that is easy to understand. When you can demonstrate good practice and benchmark your cybersecurity posture with your competitors, you gain a competitive advantage. 2. Getting cyber insurance. Cyber-readiness is increasingly a necessity for organizations, but for insurance underwriters, evaluating an organization’s cybersecurity... [Read More]

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Fraud & Security What Does Your Wearable Tech Tell a Cybercriminal?

Runners with wearable tech
Feb022017

The short answer: potentially a lot more than you intend. Let’s say you take a walk or run early every morning, on the same route in your favorite park, before the sun comes up. Your fitness wearable times your run, tracks your progress, and calculates your distance based on location, which is great—until that information, stolen during a data breach, ends up in the hands of a cyber stalker. Now, all of a sudden, you’ve unwittingly been put in a very vulnerable place. It’s true, this type of theorizing can be a little macabre. So are the ethics of self-driving cars, and many other aspects of the new world of artificial intelligence we now inhabit. The reality is, every category of technology carries inherent risks, and as people become more connected with technology in every aspect of their lives, we must be cognizant of those risks. New technology creates new... [Read More]

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Fraud & Security FICO @ AFSA: Auto Lenders Losing $2-3B to Fraud

Jan312017

One of my favorite movie scenes is from Blade Runner. A policeman is interrogating his detainee, asking a series of questions to determine whether the person is a real human-being or a synthetic. Funnily enough, this scene parallels the problems discussed at a FICO roundtable on ‘How to Fight Auto Loan Fraud’ held this week at the AFSA Vehicle Finance Conference & Expo. While none of the 25 attendees resembled Harrison Ford, they agreed they were getting busier looking for synthetics, just a different kind of synthetic. In this case, we were talking about synthetic identities, a type of fraud in which a criminal combines real and fake information to create a new fake identity that is used to open fraudulent accounts and make fraudulent purchases. The use of synthetic IDs in the auto loan industry has been a growing problem in the last 18 months. Attendees at the roundtable... [Read More]

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