Fraud Detection System Fraud Detection System

Fraud - intentional acts or omissions of individuals and/or legal entities in order to benefit at the expense of the company and/or cause material and/or intangible damage to the company

Fraud - theft of someone else's property or acquisition of the right to someone else's property by deception or abuse of trust (Article 159 of the Criminal Code of the Russian Federation)

Sources for Fraud Feature Analysis - Heterogeneous Data

Formation of "Standard Day" patterns

• We form a snapshot of a standard working ^[1]
• setting up an automatic alert
• detected deviations "heat up" areas of possible fraud

Formation of "Frod" and "Exception" patterns

The main task of the internal anti-fraud system

Chronology of events

2023: The number of attacks on customers of Russian banks in the spring increased by 60%

On May 29, 2023, F.A.S.S.T. reported an increase in the number of attempts by fraudsters to intercept user accounts in remote banking services (RBS) or gain remote access to a smartphone. The danger is that in the event of a successful attack on accounts and devices, bank customers may lose money or access to their personal account.

Based on data financial the F.A.S.S.T. Fraud Protection anti-fraud system, analysts highlighted the most popular schemes that scammers used against customers Russian banks in the spring of 2023 (not counting cases where victims themselves transferred money to attackers). So, in March-April, an increase of 59% was recorded in the number of attempts to intercept user accounts in RBS services compared to January-February 2023.

There can be several attack scenarios, one of the schemes is as follows. Scammers, using the data from, leaks fill out an application for the credit site on behalf of the victim. bank The client receives a message SMS from the bank with a request to confirm the application. At this moment, fraudsters contact the victim and, on behalf of the bank, propose to stop the loan process. However, instead, they go to the restore access page of the bank service and send a request for recovery/shift. password The client receives an SMS with a code that allegedly cancels the credit application, and in fact gives the fraudster the opportunity to access an account in the banking service for further entry into his personal account and withdrawal of money.

Another mass scheme is associated with attempts to gain remote access to the bank's client's smartphone. The number of cases when a fraudster tries to connect via remote access to the victim's device increased by 58% in March-April compared to January-February 2023. In this case, under the guise of saving funds in an account, the victim is offered to install a mobile application or program supposedly to teach or demonstrate the screen, which is a remote access service. Having gained access to the victim's account, fraudsters withdraw money to controlled accounts. According to F.A.S.S.T., the number of attempts to connect to the devices of bank customers was 1.7 times higher than the number of attacks to intercept accounts in online banking services.

Fraudsters are constantly developing and introducing all new scenarios for embezzlement of money from an account, but the main ways to get to the RBS are to intercept an account in online banking, remote access to the device and schemes, "said Dmitry Dudkov, an F.A.S.S.T. financial fraud specialist. - One of the reasons for the increase in attacks may be the result of a record number of published leaks and the spread of various HPEs, for example, steelers, spyware and mobile Trojans. Banks can secure their customers by using technology to protect both mobile and web feeds from financial fraud.

For users, F.A.C.C.T. experts recommend following basic rules that will help protect money from financial scammers:

• Do not share information on the Internet, social networks with the client of which bank you are, do not publish photos and scans of documents and bank cards.
• Do not click on suspicious links and open suspicious files, documents.
• Use a separate bank card for online purchases, settlements on the Internet. Do not leave bank card information on suspicious resources.
• Use complex passwords - different for all devices and resources.
• Do not act on the account if they call with an offer to make any transfer.
• If a "bank employee" called, "law enforcement officer" cannot report CVV, code word or code from SMS. As soon as such a request, you need to interrupt the conversation and inform your bank from which number the call came.
• Contact the bank at the number indicated on the bank card or on the official website. Ignore suspicious SMS with the number and with a request to call the bank back.
• Carefully monitor incoming SMS about blocking or re-issuing the SIM card.

2019: Globally, only 13% of organisations use AI and machine learning to combat fraud

On July 11, 2019, it became known that in just two years artificial intelligence and machine learning will be used to counter fraud three times more often than in July 2019. Such data were obtained during a joint study by SAS and the Association of Certified Fraud Examiners (ACFE). As of July 2019, such anti-fraud tools are already used by 13% of organizations that took part in the survey, and another 25% said they plan to implement them within the next year or two. Read more here.

Damage assessments

2017: Forrester: Global fraud losses to reach US $2 trillion by 2020

According to the results of a study commissioned by Experian and conducted by Forrester Consulting, almost half (42%) of top managers of large companies consider fraud to be the second most important obstacle to business growth (the main negative factor is the activities of competitors).

The study involved almost 400 top managers of companies in Europe, the Middle East and Africa. The results of the study show that many company executives do not realize how important it is to find a middle ground between fraud prevention procedures and customer comfort. And this despite the fact that the overwhelming majority of respondents do not consider the anti-fraud processes used in their company to be quite effective.

• More than three-fourths (77%) of CEOs admitted their existing fraud prevention strategies were ineffective.
• Only in every fourth (28%) of the organization, according to the respondents, a balanced method of combating fraudsters has been developed, which does not create inconvenience for respectable clients.
• Less than one-third (31%) of companies continuously monitor fraud attempts, monitor customer transactions in real time, or have access to accurate data sources.
• As a result, almost half (45%) of all senior executives in the coming year plan to improve anti-fraud analytics by investing in new technologies, including device recognition software.

Many top managers recognize the urgent need to act quickly, fearing that traditional business models will sink into oblivion in the next 5 years, as they will not be able to meet customer expectations and give way to smaller, but technically more competent developments.

See also

• Cyber attacks
• Phishing
• Prices for user data in the cybercriminal market
• Information security in banks
• SIEM
• Corruption (fraud, bribes): Russia and the world
• How to choose an anti-fraud system for the bank? TADetali