Tag Archive for: fraud

Consumer Connection: Discussing Scams and Fraud with Your Family Members over the Holidays | Lifestyle

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This holiday season, Iowans will gather with loved ones making it a great time for discussions about financial fraud to help prevent those you care about from becoming victims. The Iowa Insurance Division’s Iowa Fraud Fighters program focuses on fraud against elder Iowans, but younger Iowans are also falling victim to scams at a higher rate than ever before. Fraud prevention firm SEON analyzed data collected in 2020 by the FBI’s Internet Crime Complaint Center (IC3) and found fraud complaints from consumers under the age of 20 had the largest increase in 2019 and 2020. Victims under 20 had collective losses of approximately $3,000 per person. The report also found that the older the victim, the more money they lost. This finding may be due to older Americans having more assets than our younger consumers. Fraudsters do not discriminate when it comes to age.

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Caller Identification: India’s new in-house solution to curb fraud calls

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The Telecom Regulatory Authority of India (TRAI), the government’s telecom authority, would implement a caller identification system similar to other caller ID applications on the app store within the next three weeks. The new system will employ KYC verification to guarantee that callers’ identities are real and aren’t forged with synthetic identities.

Why KYC verification is the best suited Identity Verification

While TRAI’s new caller identity service would function similarly to other caller ID applications on the app store, the government intends to position it as a competitor to the apps, for which India has the largest market with over 220 million active users.

Other caller ID applications on the app store usually keep a database of callers based on data given by consumers and were plainly targeted. A repository that is KYC-compliant would reduce fraud and proxy calls. According to the chairwoman, the “system would permit name-appearance on a phone screen, in line with KYC performed by telecom providers in compliance with DoT standards.”

Read here to know how KYC Verification works to prevent fraud

Although the system appears to be a failsafe, it is still feasible to obtain a new mobile connection using the identity of someone else — which might be a barrier to maintaining openness under the telecom regulatory body’s planned caller identity verification system.

How KYC Verified Caller ID will help reduce fraud calls

According to the source, the anonymous caller identity technique would also have a ripple effect, causing a clean-up of data on crowdsourcing applications with the aid of KYC. Experts feel that including KYC in the caller identification system will also help reduce spam and fraudulent calls.

Learn about the benefits of KYC and why India needs digital identity verification

KYC Verification Solution from IDcentral

IDcentral’s KYC Solution employs intelligent AI and precisely trained ML algorithms to assist enterprises in providing the most trustworthy digital experience possible using Identity Verification. While conforming to KYC/AML standards, IDcentral’s eKYC verification enables seamless and exceptionally satisfying customer experiences….

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Resistant AI and ComplyAdvantage Launch AI Transaction Monitoring Solution To Combat Fraud and Money Laundering

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Holvi, the digital banking service for small businesses, is among the initial group of customers to implement the AI-driven solution to manage their financial crime risk

LONDON, Oct. 11, 2022 /PRNewswire/ — Resistant AI, the AI and machine learning financial crime prevention specialists, and ComplyAdvantage, the financial industry’s leading source of AI-driven financial crime risk data and detection technology, today announced the general availability of their solution for fighting financial crime across the U.S. and Europe.

New Research: AI for Financial Crime Risk Detection
New Research: AI for Financial Crime Risk Detection

Financial crime is a multi-trillion-dollar problem. According to the United Nations, the estimated amount of money laundered globally in one year is 2 – 5% of global GDP, or 800 billion – 2 trillion US dollars. While the cost of fraud and money laundering to financial organizations and other businesses is significant, the cost and damage to economies and society as a whole is immeasurable.

Adding Resistant AI’s capabilities to ComplyAdvantage’s transaction risk monitoring platform extends anti-money laundering (AML) and anti-fraud protections offered to financial institutions and other businesses by:

  • Enabling them to detect previously unknown patterns of behavior and identify new risks faster.
  • Delivering alert prioritization so organizations can focus on the highest risk areas and make the best use of their investigative resources.

With these capabilities, organizations can transition to a more dynamic approach to financial crime that uncovers novel behavior as it happens.

“Effectiveness and efficacy are key to scaling,” comments Valentina Butera, Head of AML and AFC Operations at Holvi. “Integrating an AI-driven transaction monitoring solution means we can grow our customer base without growing our headcount at the same rate. With Resistant AI and ComplyAdvantage, we can manage our known risks more efficiently while also identifying and adapting to previously unknown risks.”

Martin Rehak, founder and CEO at Resistant AI, commented, “We are delighted that our joint solution is now available to drive game-changing efficiency gains. Alert prioritization, the ability to make systems more…

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The growing threat of CEO fraud and how to mitigate it

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CEO fraud is a type of financial theft attack in which criminals impersonate a CEO or other C-level executive to obtain sensitive data or money. The perpetrators often trick a finance or human resources employee into executing unauthorised money transfers or sending confidential tax and payroll information. By posing as the CEO or other senior figures, the attacker guarantees that the malicious email gets employees’ attention. Many employees are reluctant to question a request from their CEO, so they usually provide the information.

The U.S. Federal Bureau of Investigation (FBI) categorises CEO fraud as a business email compromise (BEC) scam. BEC uses various techniques, including social engineering, compromising legitimate business email accounts, malicious software to access inboxes, and other computer intrusion tactics.

A growing threat

The number and impact of BEC scams continue to increase. The FBI reported a 65% increase in global losses from BEC between July 2019 and December 2021. According to the same report, data collected from the FBI Internet Crime Complaint Center, law enforcement, and financial institutions revealed that the scams cost victims more than USD $43 billion in 2021 and involved fraudulent transfers to banks from over 140 countries.

Breach reporting is not always mandatory, meaning the actual numbers could be much higher. Many victims are also embarrassed to report these cybercrimes as they may feel foolish and want to avoid reputational damage. The criminals rely on this shame to mask the staggering losses resulting from BEC.

Identifying and compromising CEOs

The perpetrators use platforms like LinkedIn and company websites to identify CEOs and senior executives and obtain their contact details. They then use email or messaging platforms such as WhatsApp to contact the targets and attempt to hijack their accounts. With a stolen email or messaging account, the attacker has access to the executive’s contacts and can use the same scam with CEOs and senior executives at other companies.

Spoofing sender details

There are two common tactics for manipulating sender information in CEO fraud emails:

  • In name spoofing, the attacker uses the name of the…

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