Threat Landscape Of Online Fraud Risk Management

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1.1. Introduction to threat landscape of online fraud risk management
The Online banking and financial services have revolutionised the consumer and corporate banking industry in the last few decades or so by giving customers the power to conduct their banking anytime, anywhere and without all kinds of paperwork and branch visits. This has been possible with the help of massive investments in information technology, systems and communication infrastructure linking the banking industry network with their universe of customers. This empowerment has also given the financial services industry a platform to create financial products with which to woo the marketplace to grow market share, revenue and profits at rates not seen
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With online banking becoming increasingly popular for its convenience, accuracy and speed of action especially amongst the younger and more digitally savvy customers, and the Banks benefiting from lower costs compared to branch based customer service and reach, the fraud industry has been quick to catch on to its vulnerabilities through imaginative techniques such as Phishing and Malware. This is where the fraudster sends an email convincing a recipient to click on a link which in turn downloads the malware directly to the user’s computer. This results in the capture of customer’s personal banking data, enabling the cyber criminals to process fraudulent transactions through the customer’s bank account. Numerous variations and modifications to these commonly used tools for fraud have emerged over the last few decades. These will be discussed in the Literature review. As banks create new rules, systems and procedures to combat and prevent online financial crime, the cyber criminals seem to always stay a step ahead with their own adoption of technology. Furthermore, Banks are constrained by Federal rules and regulations as well as the customer’s dislike for excessive authentication barriers, while the fraudsters have no such considerations and are therefore faster in their
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