Looking to 2017: Risk and Fraud

Are Checks Now Safer than Debit/Credit Cards?Andrew Davies, Vice President of Global Market Strategy, Financial Crime Risk Management at Fiserv, makes several great points about how quicker transactions – and the customer expectations attached to that speed – can be dangerous in terms of exposing fraud and theft opportunities. (Read it HERE.)

Mr. Davies describes a “perfect storm of factors,” broadly consisting of:

  • Greater demands from customers of financial services.
  • The emergence of disruptive technology from fintech companies.
  • The increasing sophistication of financial criminals.

A new terminology mentioned is referred to as hybrid analytics, a sophisticated technique leveraging “a broader set of data from a consortium of institutions to analyze transactions in real time. The process identifies the nuances of behaviors that indicate fraud.”

Mr. Davies goes on to note:

Essentially, hybrid analytics establishes a layered series of checks and balances across a transaction’s lifecycle to help ensure what’s happening with a payment is consistent with previous outcomes. It may not be enough to target one point of the transaction. Strong protection often depends on monitoring the entire flow.

OrboAnywhere™ very much mirrors the concept which Mr. Davies describes. Why? Because the Omnichannel now consists of a wider range of deposit channels which go unmonitored. Each deposit channel is somewhat of a silo, in traditional terms. So ideally, having a single platform which automatically analyzes and scores paper-originated items (checks) with greater accuracy using data analytics, validation logic and image analysis, enables financial institutions the ability to stay one step ahead of the fraudsters.

Leave a Comment