In the fraud prevention world, the terms ‘validation’ and ‘verification’ can become somewhat synonymous with each other. Validation is the determination of legitimacy, while verification is the matching of information to a trusted source. When assessing third-party data sources, it can be profitable to be aware of the difference.
Fraudulent new account applications by cybercriminals and fraudsters have been surging for quite some time. Through identity theft or synthetic identities (combinations of fictitious and real information, such as name, SSN, and other PII to create new identities), threat actors are applying for new accounts at record levels.
Account takeover (ATO) scams have been growing quickly since early 2020, with estimates ranging from two to six times that of the prior year. While fraudsters carry out these scams in a number of ways, there is one tool of choice for cybercriminals around the world.
According to the Chinese zodiac, 2022 will be the year of the tiger. Another auspicious occasion across the global payments industry pertains to ISO 20022, which is a global and open standardization approach for financial services, specific to electronic communication. By enabling multiple markets to communicate in a universal messaging language and model, ISO 20022 marks a significant turning point in payment digitization. ISO 20022 was originally introduced in 2004 by the Internal Organization for Standardization to help universalize and advance real-time payment messages.
The Financial Action Task Force (FATF), a global AML watchdog, shook up the cryptocurrency industry in March when it published updated draft guidance for virtual assets (VAs) and Virtual Asset Service Providers (VASPs), dramatically expanding the scope of the guidance.
The past 12 months have been marked by profound change and rapid digitization, a trajectory that is likely to continue over the next few years. Digital is now the name of the game; creating new realities for organizations to adapt to and presenting opportunities for criminals to exploit.
The effects of COVID-19 will be felt for the next few years and will continue to ripple out into the world of financial crime and compliance. In my opinion, this will result in a seismic shift in how compliance programs are governed, staffed and what technology is employed to ensure efficacy.
Financial services organizations (FSOs) must continually evolve to protect against the growing sophistication of financial crime. Traditionally, FSOs used solutions that were rule-based to fight financial crime threats. But using rule-based models alone are no longer sufficient. That’s because there are three main problems with rules: