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Financial organisations unable to distinguish fraud from normal activity

A new survey from Kaspersky Lab and B2B International has revealed that 38 per cent of financial organisations are unable to distinguish an attack from normal customer activity.

In recent years, electronic payments or e-payments have grown at a startling pace as a growing number of businesses realised that they could no longer avoid the increased revenue that could be earned by making their products and services available online. As it stands now it is almost impossible for any business to completely avoid using electronic transactions in its day to day operations.

When the number of businesses processing transactions online increased, so did the level of online fraud. Of the financial services organisations surveyed, 50 per cent believe that financial fraud is increasing. In order to prevent fraud, 41 per cent of business have decided to implement an in-house cybersecurity solution while 45 per cent are relying on a third-party security solution.

The survey also found that 46 per cent of companies have only partially implemented a solution against financial fraud or have not adopted one at all. When it came to financial institutions, only 57 per cent have a security solution that is dedicated to preventing financial fraud.

The findings from the survey show that around half of the organisations that primarily deal with electronic payments are using non-specialist solutions. These are often unreliable against fraud and have a tendency to show a high percentage of false positives hence the reason these organisations are often unable to distinguish between normal customer activity and an attack.

Kasperky Lab's Global Head of Fraud Prevention, Ross Hogan commented on how these organisations should adopt specialist solutions in order to prevent financial fraud: “Considering the aggressive competition in today's fierce financial services market and the extreme disruption from non-traditional providers, a trusted relationship between customers and their financial institutions is a decisive factor for the long-term prosperity of any company. The interdependence of the digital relationships between all financial services market players also means that if any one organisation in the value chain experiences a digital service issue (whether due to fraud, breach or cyber-attack, etc.), the damage can quickly spread to the other organisations in that digital financial service value chain.

"As the already high volume of customer demand for online transactions continues to increase, all companies (its customer facing digital platforms, infrastructure, data and employees) should be secure, convenient and prepared. It’s crucial, therefore, to use specialised fraud prevention solutions that will provide customers with the most convenient and safest service possible.”

Image Credit: Pathdoc / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.