Helping market players adopt the latest financial crime mitigation capabilities
Adam Gable Product Director, Financial Crime, Treasury & Risk, Temenos, speaks at TCF 2022 in London about Financial Crime Mitigation & Sanctions. We discuss the current geopolitical crisis and the burden on banks looking to protect themselves, their customers, and the financial system, whether challenger banks have the necessary capabilities & experience needed to meet new regulatory demands, and…
Financial Crime Compliance Spotlight OCC
In this ACFCS Fincrime Professional Spotlight we find out how an OCC AML examiner broke into the field by combining a passion for uncovering patterns and aberrations and a talent for forensic accounting into a powerful skill set that helps financial institutions bolster their financial crime compliance programs.
Financial Crime News and Fraud Risk Management (Android Malware & Digital Trust)
Attention fraud fighters! For all the latest news around financial crime, fraud risk management, risk ops for banks, digital trust for banks, fraud prevention, and other financial guidance, please subscribe to our channel: https://www.youtube.com/@Feedzai.RiskOps
0:00 Android Malware Attacks Online Banking
0:58 How SpyNote Steals Banking Credentials
1:06 What Should Consumers Do?
1:19 The Importance of Digital Trust for Banks
An Android malware that’s part of the SpyNote family has recently turned its attention to online banking. It can use keylogging to steal usernames and passwords and gain access to users’ social media profiles. SpyNote is a Trojan spyware that’s been around since 2016 and allows hackers to spy on Android smartphones.
The latest variant of SpyNote was first sold to cybercriminals as ‘Cypher RAT’ and then the source code was made available in October of last year. Since then, there has been a steep increase in its usage in attacks against online banking.
This particular malware has been involved with posing as legitimate apps from banks like Deutsche, Kotak, and BurlaNubank. The typical method of distribution of the malware is through phishing campaigns that direct users to websites to download the fake apps.
Once installed, the malware uses accessibility services and device administration privileges to make it nearly impossible for users to uninstall it.
How does it steal banking credentials? With a fake login page posing as the bank. It can also access multi-factor authentication codes.
If you’re a consumer, try to minimize the chance of downloading malware by only downloading apps from the Google Play store. Be careful with any emails that are supposedly from your bank. Do not ever download an app through an email solicitation.
If you’re a bank, make sure you have digital trust software that can analyze behavioral biometric data, device intelligence, and also perform malware analysis.
As I mentioned, the source code for SpyNote is free and readily available, so we should expect more variants of this to emerge. The threat isn’t going away; in fact, it’s probably going to get worse.
Digital trust is a two-way street. You want to be able to trust that your customers who are using your online banking app are who they say they are. But you also want your customers to trust in your ability to prevent fraud while providing a seamless and fluid customer experience.
Financial Crime News and Fraud Risk Management (Importance of Anti Money Laundering in Banking)
Attention fraud fighters! For all the latest news around financial crime, the importance of anti money laundering in banking, anti money laundering systems, fighting money laundering, and the importance of customer risk profiling, please subscribe to our channel: https://www.youtube.com/@Feedzai.RiskOps
0:00 UK’s Economic Crime Bill Proposal
0:11 Companies House & Bounce Back Loan Fraud
0:52 Changes Proposed by the Economic Crime Bill
1:45 Potential Results of the Bill
I’m Nick Parfitt, and here is your Weekly Feedzai Update.
I’m going to be talking today about the UK’s proposed economic crime bill and how this will overhaul and strengthen the Companies House incorporation process.
As many of you may know, the UK’s Companies House has always been a major weakness in the UK’s attempts to thwart money laundering, as the incorporation services were never really intended to be an AML control point. Therefore, company and director information was not validated or verified.
During the Covid period of 2020 and 2021, the government stimulated the UK economy through what were called Business Bounce Back Loans. This scheme was intended to be used to stimulate the British economy, but criminals were using a combination of fraudulent techniques with companies registered to Companies House to obtain loans, often using compromised identities available for sale on areas like the dark web.
The scale of the fraud was eye watering — estimated to be in the hundreds of millions of pounds. Enter the UK’s proposed and long-awaited economic crime bill, which makes major structural changes to the Companies’ incorporation process, requiring the identity of directors and anyone registering a company in the UK to be verified.
In addition, Companies House will also receive new powers to check and challenge incorrect or fraudulent information, which could result in the application being declined. Enforcement and investigation powers at the body will also be bolstered. Traditionally opaque ownership and disclosure requirements for limited partnerships, including the now-notorious Scottish Limited Partnership structures, would also come into the bill’s purview, which will tighten registration and transparency requirements.
Strong statements from the UK’s Business and Home Secretaries have made it clear that they are taking a hard line on fraudsters, corrupt elites, kleptocrats, and organized crime who have previously exploited the weaknesses of the system — emphasizing that the UK is now open for legitimate business.
The economic crime bill will make it easier for law enforcement agencies such as the National Crime Association to seize and recover crypto assets.
The bill is yet to become law, however, and will need to be debated and approved by the UK Parliament.
I’m Nick Parfitt, and that was your Weekly Feedzai Update.
Detecting Financial Crime Using an Azure Advanced Analytics Platform and MLOps Approach
As gatekeepers of the financial system, banks play a crucial role in reporting possible instances of financial crime. At the same time, criminals continuously reinvent their approaches to hide their activities among dense transaction data. In this talk, we describe the challenges of detecting money laundering and outline why employing machine learning via MLOps is critically important to identify complex and ever-changing patterns.
In anti-money-laundering, machine learning answers to a dire need for vigilance and efficiency where previous-generation systems fall short. We will demonstrate how our open platform facilitates a gradual migration towards a model-driven landscape, using the example of transaction-monitoring to showcase applications of supervised and unsupervised learning, human explainability, and model monitoring. This environment enables us to drive change from the ground up in how the bank understands its clients to detect financial crime.
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