BSP Governor Benjamin Diokno recently issued Circular No. 1140 – Amendments to Regulations on Information Technology Risk Management. This requires BSP-supervised financial institutions (BSFIs) to place an automated and real-time fraud monitoring and detection system to identify and block suspicious or fraudulent online transactions.

BSP’s cyberthreat surveillance activities show that cyberattacks and illegal activities affect two or more FIs simultaneously. We are all aware of the recent incident wherein account holders lost thousands of pesos from unauthorized transfers to another bank. Victims were hit by “sophisticated fraud schemes” and they did not even click on any links or did not disclose their bank information.

We are now in the digital age, and we use electronic channels as a hassle-free and reliable method of making transactions. With this innovation, fraud and cyber threats continue to evolve.

Is your business prepared to detect and prevent fraudulent and suspicious activities? Can your current security tools and controls process surge in transactions, collectively analyze customer profiles/behavior, and detect new fraud patterns?

Let’s take a step back and define fraud. It is the act of deceit or trickery to gain financial benefits. In this new digital era there are many types of fraud and vectors that attackers use:

• Account Takeover: Gaining control and access over a legitimate account.
• Social Engineering & Scams: Exploiting a person’s trust to obtain confidential information like Personal Identifiable Information (PII) or Personal Health Information (PHI) to enable a subsequent crime.
• SIM Swap & Call Divert: Cybercriminal convinces your telecom provider to transfer your phone number to a different SIM card under their control.
• Synthetic Identity: A complex form of identity theft in which the fraudster combines real (stolen data) and fake information to create a new identity.
• Malware & Bots: Perform automated, repetitive, and pre-defined activities to break into user accounts and perform digital impersonations.

The only way to truly prevent these types of fraud is to be certain that the users are who they claim to be. Leveraging machine learning and artificial intelligence you can passively determine the user’s identity – denying access to attackers and bots. Placing a Fraud Monitoring and Detection System gives you confidence by checking threats, suspicious activities, bots, and malware. It ensures that your account isn’t compromised or being remotely controlled.

Talk to us to learn more about Fraud Monitoring and Detection System and how it can let your team sleep soundly knowing that you’re protected from bots and credential-stuffing attacks.