Transcription
Fighting online payments fraudSAS Banking and Insurance Day – May 2014Andy Scherpenberg, Fraud Expert, SAS
Fraudiseverywhere
edit CardClaimsInvoiceValue ChainDarknetProducts/Services/SalesCyber g Functions (HR, Procurement, Legal)PayrollCall CenterRogue TradingProcurementTheft
edit CardClaimsInvoiceValue ChainDarknetProducts/Services/SalesCyber g Functions (HR, Procurement, Legal)PayrollCall CenterRogue TradingProcurementTheft
SOME HISTORY2007300 B.C.200420152012
WHAT HAPPENS?
No single layer of fraud prevention or authentication is enoughto keep determined fraudsters out of enterprise systems.Avivah LitanVP & Distinguised Analyst – Gartner Research
LANDSCAPEComplexityAverage FraudDeliberate FraudOrganized Criminal Gangs
BALLOON EFFECTFRAUD IS MOVINGCompanies implementmanual/basic fraud detection
BALLOON EFFECTFRAUD IS MOVINGCompanies implementmanual/basic fraud detectionFraud MO’s change,detection becomes more complex
FRAUD LOSSES FEBELFIN FIGURESOnline Fraud
MISSION HAS CHANGEDFacilitating Payments
MISSION HAS CHANGEDFacilitating Secure Payments
A NEW ERAA NEW ERA Customers want faster payments (i.e. mobile) Fraudsters adapt People are not robots, they change theirbehavior
A NEW ERABRINGS NEW CHALLENGES‼ Payment processing times decline‼ Modus Operandi changes rapidly‼ False positive reduction remains a challenge
APPROACHDETECTING , TREATING, IMPROVINGAnalyticalOptimizationReal TimeDetectionEngineCaseManagement
APPROACHDETECTING, TREATING, IMPROVINGAnalyticalOptimization
MATURITY MODELOutsetMaturationLayer 1EndpointLayer 2SessionLayer 3ChannelMaturationLayer 4Multi-ChannelLayer 5Social Network
MATURITY MODELLayer 1EndpointLayer 2SessionLayer 3Channel
IT TAKES TWO TO TANGOExpert KnowledgeAdvanced AnalyticsYesterday’s methods are insufficient toaddress tomorrow’s fraud risk
WE DELIVER INSIGHT“SAS uses embedded analytical models to uncover things that the humanbrain cannot. Our investigators can focus on cases with the highestprobability of fraud or highest potential financial damage.”Maya MaškováHead of Internal AuditAllianz
MODERN FRAUDDETECTIONAnomalyDetectionHYBRID APPROACH TO Social Network Analysis
Social Network Analysis Demo- Tom StockFraud is not commited by machines,but by humans. Cunning as they might be, they can rarely do it alone.The Social Network Analysis shows the often hidden links between customers, companies and employees
DIFFERENTMETHODOLOGIESWHY SHOULD YOU USE ANALYTICS? Advanced analytics with SNAFRAUD Advanced analytics Business rules Random samplesPOPULATION
THE MULES
WHO ARE THEY?
ANALYST vs. PREDICTIVE 18%Marital StatusLanguage14%Marital status17%Monetary inflow22%Postal Code2%Education Level3%Client relationship age2%99% accurate
WHAT DOES ITLOOK LIKE?TransactionsProcessingEngineReal TimeDetectionEngineAlert / Case ManagementScenario Designer
VISUAL SCENARIODESIGNPUTTING CONTROLS WHERE THEY BELONGDesign & deploy
Visual Scenario Designer Demo- Tom StockDemonstrates how an end user can tune an existing scenario with instant feedback on the effect of the modifications.Also shows how the user can deploy a modified scenario into production. All of this without IT intervention and with full audit trail
Visual Analytics Demo- Tom StockImportant as a good starting point might be, nothing is more important than continuous adaptation.Graphical report-builing and data mining give insight in the current state of affairs, all in the blink of an eye,allowing you to react to changes in the outside world faster than ever before.ContinuousImprovement
A solution integrated bydesignCapability can bedeployed over time, atthe speed and extentyou chooseEach next step builds onthe previous, no wasteExpand scope to othertypes of fraud or othersilosSTEP-BY-STEP ROAD TO MATURITYFocus on rapid deployment of a line of defence, and prepare for the ADMAPNetwork AnalysisAnomalyDetectionPredictive ModelsRule-basedAlert generationManualDetectionTime
KEYDIFFERENTIATORSLeader inGartner'sMagicQuadrantMARKET LEADER ACROSS THE BOARDForrestercites SAS as aLeaderLeader inGartner'sMagicQuadrantForresterCites SAS asa LeaderChartisResearchLeadersCategoryOnly Vendor in this space that is leading in each of these sectorsDataIntegrationBig DataPredictiveAnalyticsBusinessIntelligence ering5
OUR VISIONAs promised, a look into the future .
OUR VISIONInformation theftThreats on mobile devicesCybersecurity attacks on backendSophisticated malware, built specifically for your institutionExperts are convinced major institutions already have malware inside
Sounds unlikely? Unbelievable?
If I would have been standing here before you 5 years ago,and told you that your customers would give away theirbanking details and credentials over the phone, that wouldhave sounded more unlikely than my closing message just now.
Closing Message
We’re watching intently how the sea gently touches our feet
But we don’t realize what is coming
Gartner's Magic Quadrant Anti-Money Laundering Chartis Research Leaders Category Enterprise Fraud Management Forrester Cites SAS as a Leader Business Intelligence & Analytics Leader in Gartner's Magic Quadrant Big Data Predictive Analytics Forrester cites SAS as a Leader Only Vendor in this space that is leading in each of these sectors 5
