How to find the right fraud detection software for banks

Banking fraud is undergoing a revolution as a result of the shift to digital channels. Until recently, this was the domain of small-time criminals attempting to steal small sums.

However, digital banking fraud is now a significant international industry in which sophisticated criminal groups use increasingly sophisticated tools to steal large sums of money. As a result, the liabilities that banks must bear to cover the losses that their customers suffer as a result of fraud have increased.

As the number of digital channels has grown, so have the routes that fraudsters can take. This will present new challenges for banks, which will be held liable for losses resulting from unauthorized transactions via these new digital channels.

Therefore, the introduction of fraud detection software is inevitable. Applying them to their processes helps banks reduce risks.

In this article, SmartOSC will show you the 5 best fraud detection software for banks.

What Is Banking Fraud Detection Software?

Banking fraud detection software is intended to assist financial institutions like traditional banks and neobanks in detecting fraudsters, bad agents, and criminals.

Users attempting to open bank accounts with stolen IDs, money launderers, bonus abusers, and fraudsters attempting to log into other people’s accounts are all included.

Banking fraud detection software typically combines KYC (know your customer), AML (anti-money laundering), and authentication features (to protect customer accounts from suspicious logins).

The 5 Best Banking Fraud Detection Software for Banks

1. Backbase

Backbase helps banks accelerate their digital transformation by modernizing outdated platforms and banking apps, transforming them into modern digital experiences that are easy to use, generate higher sales conversions, and increase customer satisfaction.

Backbase’s omnichannel digital banking platform puts you in command of your digital strategy, allowing you to create, manage, and optimize an end-to-end customer experience that will put you ahead of the competition.

They provide online identity verification services that assist financial service organizations in optimizing conversions, deterring fraud, and meeting KYC, AML, and GDPR compliance mandates while providing an intuitive digital banking experience.

It is an honor for SmartOSC Fintech to be a Backbase official partner. We deliver best-in-class technology solutions deployed on the Backbase platform.

2. SEON – Transparent, Modular, Powerful

Analysis tools that extract data from a single email address, phone number, and IP address will help you. Device fingerprinting can also teach you a lot about the person you’re dealing with based on their social media presence and software and hardware configuration.

All of that information is fed into customizable risk rules, which can be suggested by a white box machine learning algorithm. The key point here is that SEON provides banking risk managers with an additional layer of data to gain full confidence in accepting or rejecting risky customers, which has a downstream effect on fraud rates.

3. ThreatMetrix – On-Premise or Cloud-Based FI Risk Management

ThreatMetrix, acquired in 2018 by the multinational analytics company LexisNexis Risk Solutions, is quickly becoming a fraud prevention leader for financial services, insurance, pension funds, and nonprofits.

ThreatMetrix provides everything you need in terms of risk rules, from behavior tracking to custom rules and machine learning recommendations – all accessible via API calls or on-premise installation.

4. Feedzai – AI Against Financial Crime

Feedzai’s complex financial crime mitigation relies heavily on open machine learning algorithms, with native support for your own data science tools. According to the company, it enables risk managers to create “hyper-granular profiles” for cards, terminals, devices, or IP addresses.

Feedzai’s AI system is even integrated into its case manager tool (used to dispute financial crime cases) and Genome tool, which allows users to visualize connections between accounts and attack vectors.

5. Experian Hunter – Application Fraud Detection

It makes perfect sense for Experian, a well-known UK credit scoring company, to use its databases to provide identity verification services. Its Hunter software does exactly that, with a focus on preventing application fraud in the banking industry.

As Experian correctly states, identifying criminals at the point of application is the first and best strategy for reducing fraud losses. Whether you’re a traditional retail bank or a challenger bank with low-friction requirements, their detection method is designed to be highly configurable.

Conclusion

Using fraud detection software for banks is a simple way to protect your company’s and your customer’s data. Finding the best fraud detection software for your bank does not have to be difficult. All you need to remember is to select software that is scalable, cost-effective, and supports your business reliably.

Choose one of these fraud detection software companies to automatically protect your data. Don’t forget to follow up and contact SMARTOSC Fintech to receive the best solution for your business.