Claire Rees 7 Jul 22 2 min read

Working smarter to detect Money Laundering and Fraud

Fraud in the UK continues to be a hot topic. The recent UK Finance Annual Fraud Report 2022 states, “Banks and card companies prevented £1.4 billion in unauthorised fraud in 2021. This represents incidents that were detected and prevented by firms and is equivalent to 65.3p in every £1 of attempted fraud being stopped.” The report goes on to explore how the continuing impact of Covid-19 has reshaped the fraud landscape in the past 18 to 24 months.

It appears that the effects of the pandemic (more of us are working from home, spending longer online, and doing more internet shopping) have resulted in certain types of fraud falling while others have risen. There was a 7 per cent decrease in unauthorised financial fraud losses across payment cards, remote banking and cheques in 2021 compared to 2020, while Authorised Push Payment (APP) scams were up in 2021 with gross losses of £583.2 million, compared with £420.7 million in 2020.

Whether exploited by relatives or associates or falling victim to scams, fraud targeting the customers of financial organisations has become a significant issue. Working from home has become the norm since the start of the Global pandemic, and organisations have also had to look for ways to mitigate the potential associated internal fraud risks, often on a tight budget.

While your AML compliance solution will be monitoring transactions for suspicious activity in relation to AML/CFT, can it be easily configured to look for instances of internal and external fraud?   Having a solution flexible enough to address multiple requirements offers the benefits of dealing with a single, known vendor without the need for retraining or the use of multiple interfaces, all while getting more value from your solution.

The Jade ThirdEye team, work with each financial organisation to create rules to look for patterns of activity based on an organisation’s individual risk profile. Instead of being restricted to a predefined set of rules and facing expensive developers costs to customise the rules, the configurable nature of Jade ThirdEye means that the ability to review, adapt and configure new rules are all at an organisation’s fingertips. This flexibility allows organisations to develop and refine a number of ‘vulnerable customer’ rules that look for activity of concern on the accounts of customers to help protect customers from internal and external fraud.

Examples of the types of external fraud that Jade ThirdEye rules can be used to detect include:

  • Elderly Customers making unusual withdrawals
  • Prepaid sources/destinations
  • Account resets
  • Suspicious nominated account activity
  • Sleeper accounts
  • Test payments
  • Unusual withdrawals
  • APP fraud
  • Mortgage/Scheme abuse

Examples of Jade ThirdEye rules that can be created to alert for potential internal fraud include:

  • Colleagues transacting on their own account
  • Unexpected colleague activity
  • Unexpected account activity
  • Unexpected relationships
  • Activity at unusual times

These rules examples are not exhaustive and an organisation may have other rules it will wish to add to better suit its risk profile. In addition to rules that can be created and run regularly to detect fraud, the flexibility to create new rules rapidly in Jade ThirdEye means it can also be used to support ad hoc fraud investigations as new intelligence comes to light.

Contact the Jade ThirdEye Team to explore how your organisation could monitor AML/CFT and fraud efficiently all in one place.

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