Fraud Prevention: FiVerity Supports Banks with Anti-Fraud Collaboration Platform

FiVerity, the provider of Anti-Fraud Collaboration solutions, today announced new platform features designed to help the financial industry fight back against fraud.

FiVerity also announced it is “opening the network to an initial 200 small and medium-sized financial institutions, providing approved businesses with free access to its Digital Fraud Network for a limited time.”

The rising prevalence of advanced artificial intelligence (AI)-driven fraud tools, “coupled with the turbulence caused by recent events in the banking industry, has created a ‘perfect storm’ for financial fraud.”

This challenging environment “poses significant hurdles for financial institutions of all sizes to protect themselves effectively.”

In response, industry stakeholders, “including financial institutions, data providers, and government agencies, have recognized collaboration as the most effective strategy to combat these evolving threats.” By joining forces, they aim “to leverage collective intelligence and resources to counteract the growing strength of fraudulent activities.”

To help fuel the cause, FiVerity has “enhanced its Anti-Fraud Collaboration Platform with new features that identify fraud and risk more accurately and in real-time.”

To level the playing field, the company also “unveiled plans to provide small and medium-sized financial institutions with free access to the Digital Fraud Network, which includes some of the most innovative names in financial services such as BHG Financial, Digital Federal Credit Union, and Grasshopper Bank to share intelligence on fraudulent identities to stop criminal fraud in real-time.”

The free offering is “available to the first 200 qualifying businesses, which will gain limited platform usage for a period of one year.” Eligible financial institutions must “have less than $1.5B in total assets and under 200 queries/applications each month.”

Greg Woolf, CEO of FiVerity, said:

“Criminals have become increasingly adept at perpetrating financial fraud by leveraging sophisticated AI tools like ChatGPT. They exploit the initial stages of fraudulent activities in small and medium-sized financial institutions, gradually building a deceptive history and establishing credibility before targeting larger institutions. This places small and medium-sized institutions at a disadvantage as they often lack the resources and access to tools possessed by larger entities. To address this pressing issue, FiVerity recognizes the urgent need for all financial institutions, regardless of size, to have equal access to advanced tools and intelligence. By enabling banks and credit unions of all sizes to collaborate in real-time, detect fraudulent activities, share crucial information, and prevent fraud effectively, we are leveling the playing field and empowering the industry to stay ahead of fraudsters. Today’s announcement marks a crucial step towards cutting off sophisticated fraud at its early stages and safeguarding the integrity of the financial ecosystem.”

The Lifecycle of Sophisticated Fraud

Sophisticated fraud operates “through a strategic lifecycle, often finding its initial foothold within smaller financial institutions.”

Fraudsters exploit the relative ease of infiltrating and establishing fraudulent accounts in these institutions, “leveraging their limited resources and potentially less robust security measures.”

By discreetly building credibility and evading detection, they “lay the groundwork for future fraudulent activities.”

As these deceptive accounts mature and gain a semblance of legitimacy, fraudsters subsequently “move on to larger financial institutions, using the established history as a stepping stone for more significant fraudulent endeavors.”

Recognizing this pattern is crucial “for developing effective prevention strategies, as it highlights the critical need to empower smaller financial institutions with the necessary tools, intelligence, and collaborative frameworks to detect and thwart fraud at its earliest stages, thereby disrupting the lifecycle of sophisticated fraud.”

Using AI Tools to Commit Financial Fraud

Fraudsters are also increasing “their use of available automation and AI-based tools, which make it fast, easy, and inexpensive to conduct financial fraud.”

With these tools, they emulate real identities, “using a combination of fabricated or stolen profile pictures, biographies, social network profiles, social security numbers, driver’s licenses, and other documents.”

This provides the perfect ‘front’ for cybercriminals “to undertake their nefarious activities, such as opening bank accounts, applying for loans, and carrying out financial transactions.”

Sponsored Links by DQ Promote



Send this to a friend