Online Fraud Is Increasing - Is Business Intelligence the Answer?

With the year on year rise in ecommerce, there is a corresponding rise in online fraud - in fact, according to Financial Fraud Action UK, this type of activity had increased by a quarter to £399.5 million in the first half of 2016. The most recent manifestation of this is the concept of “testing” - this is where the criminals try small purchases to check the validity of card details, before moving in for the kill.

According to the reports, there has been a 200 percent boost in this phenomenon since the beginning of 2017. Not only does this mean that innocent consumers are at risk of having their accounts emptied, but just to add insult to injury, many find that their credit rating is negatively affected by the acts of these fraudsters.

Understanding behaviour

The link between business intelligence (BI) and fraud prevention might not seem obvious, but the point is that behavioural analytics can play a significant role in understanding and determining fraudulent behaviour. Data analytics can be used to identify and track patterns that can help reveal exactly how, when and where these criminals are operating. The more we know, the better the chances for merchants and payment processors to implement the appropriate safeguards. And the benefits go wider. Better data means refinements can be made to those annoying automated fraud protection protocols that sometimes flag your genuine transactions as fraudulent and lead to embarrassed and unhappy customers wasting time resolving the matter. Eight times out of ten, there is a “shoot the messenger” mentality where they decide to take their business elsewhere rather than risk a repetition of this kind of inconvenience.

Broader applications

The benefits are not restricted to ecommerce. Other segments within the Fintech umbrella are equally exposed to cybercrime - for example, those involved in wealth management are logically a prime target. Now is the time to consider how the smart use of BI can guide their prevention strategies.

The next evolution of fraud prevention

The applications of data analytics and business intelligence are well known and understood when it comes to digital marketing and customer relationship management. Fintech companies also need to be aware of this rapidly evolving technology, and the benefits it can bring in fraud detection and prevention, as well as its more traditional applications, such as providing insights into customer behaviour and market trends.

About Author:

Sally Collins is a professional freelance writer with many years experience across many different areas. She made the move to freelancing from a stressful corporate job and loves the work-life balance it offers her. When not at work, Sally enjoys reading, hiking, spending time with her family and travelling as much as possible.

If you'd like to get an assessment of the architecture and security of your web or mobile application,please visit https://teskalabs.com/services/mobile-app-security-audit to know more about our security audit service for web app and mobile app.

About the Author

Guest Author

A guest author is an SME of his/her topics or a friend of TeskaLabs.




You Might Be Interested in Reading These Articles

Connecting the Unconnected. Securing the Internet of Things (IoT)

The Internet of Things (IoT) has unleashed new trends, and things are now labeled Smart-X (X = things). We can now connect the unconnected like cow or Barbie doll. But anything that can be connected can be hacked.

Continue reading ...

IoT security

Published on July 14, 2015

Understanding the Importance and Value of Backend Security

We know that backend security is important, but what exactly constitutes the “backend?” To put it simply, the backend is the portion of a website, web application, or mobile application that exists behind the scenes. By contrast, the “frontend” of an application is everything that the user interacts with. This includes design features in the website or application, links, transactions, images, content, and others.

Continue reading ...

mobile security

Published on October 06, 2015

SQL Injection - Are Developers to Blame for Data Security Breaches?

Of course, this is a bold statement, but for those who deal with security issues from mobile applications, they can pinpoint where the flaw occurred with developers not taking security into account when developing mobile apps. Security takes the back seat to app functionality and remains as second thought.

Continue reading ...

security development

Published on March 07, 2015