Transaction monitoring in the realm of Anti-Money Laundering (AML) is a critical process that financial institutions employ to detect and prevent illicit activities such as money laundering, terrorist financing, and fraud. As regulatory scrutiny intensifies globally, the importance of robust transaction monitoring systems cannot be overstated.

Increasing your online customer base might seem beneficial, but is it always advantageous for your business? Our guide aims to help you identify and understand customers who might pose long-term challenges, commonly referred to as high-risk customers. Financial institutions, such as banks, must adhere to regulations that require thorough customer screening to prevent fraud and money laundering.

In 2023, identity theft and fraud reached significant levels, with various reports highlighting the extensive impact on consumers and businesses. The Federal Trade Commission (FTC) reported that consumers lost more than $10 billion to fraud, marking a 14% increase from the previous year. Identity theft remained a pervasive issue, with nearly 560,000 cases reported in the first half of 2023 alone.

As we navigate through 2024, banking fraud continues to evolve, presenting new challenges for financial institutions. Driven by advancements in technology and changing economic conditions, these threats require banks to stay vigilant and adopt robust strategies to protect themselves and their customers.

KYC is a set of regulations that financial institutions and other businesses must follow to verify the identity of their customers. It’s about understanding who you’re doing business with and assessing any potential risks. KYC compliance helps to.

Travel fraud is a growing concern within the industry, posing significant challenges to businesses and consumers alike. As travel becomes increasingly digital, the opportunities for fraudsters to exploit online transactions and reservations have also expanded. Research from global Edgar, Dunn & Company, on behalf of eNett, said in total, fraud costs the travel industry over $21 billion dollars annually, including $6 billion dollars in damages and $15 billion in overheads.

The fight against money laundering and terrorist financing requires a united front, with financial institutions and large corporations playing a critical role. One key weapon in this arsenal? Politically Exposed Persons (PEP) screening. PEP screening identifies individuals with prominent public positions or close ties to them, who may be exposed to a higher risk of bribery, corruption, and other financial crimes due to their influence.

Neobanks, which operate exclusively online without traditional physical branch networks, are facing an increasingly challenging landscape due to a significant rise in fraud cases. In recent years, financial institutions have reported a marked increase in fraudulent activities, with the average cost of fraud for institutions with assets over $5 billion rising by 65% from $2.3 million in 2022 to $3.8 million in 2023.

Artificial intelligence (AI) is swiftly reshaping our reality, sparking innovation across diverse domains. Yet, amid this advancement lies a pressing issue: deepfakes. These ultra-authentic synthetic media pieces can alter videos or audio to fabricate instances where individuals seem to say or do things they never actually did.

In the modern digital landscape, the importance of document assessment and data extraction in ID verification processes cannot be overstated. These technologies are pivotal for businesses and organizations to ensure security, compliance, and efficient customer onboarding. With the rapid digitalization of services, from neobanks to telehealth, efficient and secure digital customer acquisition has become crucial.