Behavioral Analytics a Key Future Weapon Against Cybercrime and Financial Fraud

With each passing day, cybersecurity becomes a more complex, diversified and tricky field. The natural arms race between hackers, cybercriminals and other malicious actors on one side, and investigative and security professionals on the other, continues to accelerate. On the one hand, those fighting cybercrime often have access to the latest technology and techniques - but criminals on the other side of the equation are gaining the ability to use increasingly sophisticated tools and equipment.

According to research by FICO, the use of behavioral analytics - previously most commonly used to defeat credit card fraud - will become a core part of many financial institution’s defenses against cybercrime globally.

“In terms of compliance - particularly anti-money laundering (AML) and terrorism financing - and cybersecurity, the most prevalent transaction monitoring solutions used to identify illicit activity in these domains are extremely imprecise,” explained Scott Zoldi, chief analytics officer at FICO. “The compliance solutions generate tens of thousands of alerts for every genuinely criminal transaction requiring a formal suspicious activity report (SAR). The volume is so great that compliance officers can only investigate a small fraction of suspected SARs. As a result, illegal transactions slip through, continuing through the global payments system.”

Behavioral analytics combine some of the traditional skills and techniques of profiling with large data sets and algorithms that effectively assign the probability of a given event being a fraudulent or criminal action based on its archetypes. The goal is ultimately to both reduce the overall rate of fraud and cut back on false positives, which chew up investigative time and resources.

Prevention, reaction and analysis

Prevention is an important part of any solid cybersecurity policy. However, the nature of digital crime and fraud is such that it’s often more a matter of when, rather than if, an intrusion, breach or criminal act occurs.

As such, investigators can reap major rewards from the big data revolution - both in the form of preventative, predictive analytics and in-depth investigative tools. At many institutions, the processes in place remain uncoordinated and confused, employing both physical and digital methods of storage and analysis.

In many cases, this fosters a lack of collaboration among team members and leads to the creation of silos. But it doesn’t have to be this way. With the power of a data analytics system like Visallo, investigators can easily analyze tremendous amounts of data from a wealth of systems quickly, efficiently and intelligently. With industry-leading pathfinding and data-analysis techniques, Visallo can assemble and assess interactions between different data sets to locate the source and cause of a serious breach or fraudulent transaction.

There’s also incredibly strong access control. Visallo can coordinate access to financial statements, testimony, reports, locational data and more, ensuring that access is well-managed without hampering investigative efforts. Through Visallo’s strength and sophistication, financial fraud that does slip through the cracks is easier than ever to track down.