Two critical steps that banking institutions need to take in 2014 to help prevent fraud are implementing big data analytics and adopting far more sophisticated customer and employee authentication, says Gartner analyst Avivah Litan.
Big data analytics can help banking institutions more quickly detect early signs of fraud, says Litan, a financial fraud expert and distinguished analyst for consultancy Gartner Research. “We have so many more attack vectors than we used to have. But big data analytics allows companies to get their arms around their data much faster than ever before.”
With better data analytics, institutions can get a broader view of what’s going on across all their banking channels, which is important for identifying fraud patterns, Litan says in an interview with Information Security Media Group.
She describes an example of how one institution was able to stop a fraudulent wire transfer. “The guys who were watching the big data analytics systems saw the fraud about to take place,” she says.