Fraud Awareness –
Fraud Prevention - Latest Banking Trends
The latest trends in fraud prevention and how you can safeguard your financial interests, including what it means for you and your assets.
Fraud prevention is a focus when it comes to safeguarding your financial interests. As financial transactions become increasingly digitised, the sophistication of fraudulent schemes has also escalated.
According to our Healthy, Wealthy, and Wise report, 51% of high-net-worth individuals reported that they are not worried about fraud – but fraudsters are continually adapting, employing new technologies and methodologies to exploit vulnerabilities. This means staying ahead of the curve is essential.
Latest trends in financial fraud prevention
To keep you informed of the latest trends in fraud prevention and how you can safeguard your financial interests, here are some of the most prevalent trends in fraud prevention and what it means for you and your assets.
1. AI and machine learning pattern recognition
With the rise of sophisticated cyberattacks, robust cybersecurity measures are no longer optional. Banks are investing heavily in state-of-the-art technologies like AI and machine learning to detect and respond to fraudulent activities in real-time. These technologies analyse patterns and identify anomalies that may indicate fraudulent transactions.
Fraudsters are also increasingly using AI to commit and scale fraudulent activities. AI is also being used to combat these AI-driven risks, such as AI imagery, documentation and social profiles. These AI fraud solutions can also look at device biometrics and other factors that could indicate fraud risk.
2. Enhanced customer verification processes
To combat identity theft and unauthorised access, banks are enhancing their customer verification processes. Biometric verification, such as fingerprint or facial recognition, is becoming more commonplace. These methods provide an additional layer of security, making it more difficult for fraudsters to impersonate legitimate customers.
One Time Passcodes (OTP) have been used for a while now. It is a randomly generated code used to authenticate an activity, such as a login to online banking, that is specific to an activity or transaction. Many business owners are implementing biometric verification in their transactions for an extra layer of security.
3. Real-time transaction monitoring
Real-time monitoring of transactions allows for immediate detection of suspicious activities. Banks now offer sophisticated tools that track transaction patterns and flag inconsistencies. This proactive approach ensures that potential fraud is identified and addressed before significant damage occurs.
Utilise real-time transaction monitoring services. These tools can be integrated into your financial operations to provide ongoing protection against fraudulent activities. However, it’s important to make sure you verify any fraud notifications directly with your bank before acting - fraudsters can use fear of fraud to actually lead you to fall for their scams.
4. Convergence of fraud and money laundering teams
Financial crime costs the UK economy an estimated £290 billion a year, financial institutions are increasingly moving their fraud and anti-money laundering (AML) functions together. It can be more difficult for teams working in silo to spot patterns and move quickly enough to prevent fraud that spans multiple departments.
By understanding the links between the two, institutions can act more quickly and effectively while improving the experience for customers. They can also better identify potential risks and reduce false positives, providing more accurate risk assessments.
5. Improved data sharing between institutions
For fraudsters, data sharing is part of how they operate. However, this has been more difficult when investigating fraud across multiple institutions. The Economic Crime and Corporate Transparency Bill was passed in 2023, laying the foundation for improvements in data sharing between institutions.
Frameworks and compliance standards are being developed to allow institutions to share data on customers to understand financial crime trends and risks, and to identify and prevent fraud. This means that anti money laundering and credit risk data from multiple organisations can be used to identify potential fraudsters more quickly.
Why choose Arbuthnot Latham?
With decades of experience in private and commercial banking, we offer unparalleled expertise in fraud prevention. We also understand that every business, commercial interest and individual is unique, which is why we created financial solutions that are tailored to fit your specific needs and risk profile.
We employ the latest research, technologies and strategies to stay ahead of emerging threats, providing you with peace of mind. Read our Healthy, Wealthy, and Wise report to find out more about how we’re working to support the needs of our clients.
Fraud prevention is an ongoing process that requires vigilance, advanced technology, and strategic planning. By staying informed about the latest trends, you can protect your business and personal assets from potential threats.
At Arbuthnot Latham, we are committed to helping you navigate the complexities of fraud prevention. Contact us today to learn more about our bespoke banking solutions and how we can help safeguard your financial future.
For more information on how we can assist you in fraud prevention and other banking needs, visit our website or speak to one of our dedicated advisors.
Further reading
Protect yourself from the latest fraud scams
Fraudsters have scammed people out of hundreds of millions of pounds using everything from fake concert tickets to payments for job applications. We take a look at three common schemes and the simple steps you can follow to keep yourself safe.