Oct 01, 2013
Singapore, September 27 2013 - — FICO , the leading provider of analytics and decision management technology, alerted chiefs of leading Asian banks to the growing threat of enterprise fraud at its annual Fraud Forum in Manila this month. FICO urged the bankers to adopt the latest operational and analytic techniques to fight fraud across such emerging threat vectors as demand deposit accounts, mobile channels, application fraud and merchant fraud, as the region shifts to a post-EMV chip landscape.
The conference attracted nearly 30 of the leading banking fraud and risk executives from nine countries across Asia Pacific, who met for three days to address the growing sophistication of criminals who commit fraud, and the latest approaches to thwarting them.
FICO estimates that fraud in Asia Pacific costs in excess of US$350 million each year and is growing at an annual rate of 20-25%. Closing loopholes for criminals while delivering services that minimize customer inconvenience remains a key concern for banks. Mobile and online fraud, specifically card not present (CNP) transactions, continue to present a challenge, especially in markets that have secured traditional card transactions with EMV chips and pins.
“Asian consumers place a high value on convenience and are among the fastest adopters of new channels such as mobile and online banking,” said Dan McConaghy, president for FICO in Asia Pacific, who hosted the forum. “At the same time they seek confidence from banks that these channels are effectively protected, so rapid deployment of channel-specific defenses is especially critical in Asia. By taking an enterprise-wide approach, banks can earn their customers’ trust with swift fraud detection and positive customer contact, while also minimizing losses.”
Research firm Berg Insight predicts that the number of mobile financial services users will grow to 894 million globally by 2015, with a majority of that growth occurring in Asia. In fact, China alone already accounts for 40 percent of mobile banking users worldwide, according to separate research by analysts at Celent. Asia is leading the way in mobile banking because consumer behavior is leading the banks, but also because of the benefits to investing in consumer technology in areas with high growth and lower branch numbers.
Re-disseminated by The Asian Banker