Amid rising payment fraud, Zurich Cantonal Bank has selected Swiss RegTech NetGuardians to help it bolster its defences.
A report by FinTech Futures revealed that Zurich Cantonal Bank said that not only is payment fraud becoming “more prevalent” but attacks are also becoming “more sophisticated”, making them harder to spot.
NetGuardians uses behavioural analytics, artificial intelligence (AI) and machine learning (ML) to build “highly accurate” customer profiles.
Its software builds up accurate profiles of a bank’s customers, allowing it to spot suspicious transactions with a very high degree of accuracy. This means fewer calls to customers to verify payment, helping to cut costs and enhance the customer experience.
According to NetGuardians, the software is highly effective at spotting and stopping fraudulent payments that result from increasingly prevalent scams such as CEO fraud – where criminals send emails apparently from senior management ordering a payment – as well as investment scams, phishing attacks and social engineering. Research shows that NetGuardians cuts calls to customers by 85% and helps reduce operating costs by more than 75%.
NetGuardians said more than 40% of all Swiss cantonal banks have chosen NetGuardians as their fraud-prevention partner. Worldwide, NetGuardians is helping banks protect more than $7 trn in assets from cyber-criminals.
Earlier this year, NetGuardians was selected by Luzerner Kantonalbank AG (LUKB) to further enhance its fraud-prevention systems.
This comes during a time where payment fraud is on the rise. A report by Juniper Research revealed that global online payment fraud losses are expected to exceed $343bn over the next five years.
To put this into perspective, this equates to more than 350% of Apple’s reported net income in the 2021 fiscal year.
The report also found that fraud prevention vendors must orchestrate the right mix of verification tools if they want to combat the rise in fraud.
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