Innovation in fraud management

Aware of the challenges faced by our clients in dealing with fraud management, we have conducted a comprehensive benchmark of the most relevant technology solutions on the market and analyzed the scope and depth of services provided around 14 types of fraud.


This study has been conducted based on Fraud categories stated by Basel Committee while considering major banks operational risk taxonomies.

Most relevant 10 internal frauds and 4 external frauds for financial institutions have been retained for this analysis.


1. Unauthorized activity

This Fraud covers 3 main fraud types:

  • Transactions not reported 
  • Transaction type unauthorized (with monetary loss)
  • Mismarking of position (intentional)

Fintech solutions: Aqmetrics and Cardabel


2. Theft and embezzlement of bank and/or client assets

Theft executed by an employee (or with his involvement) to the damage of the bank and/or clients of the bank. This risk covers :

  • Embezzlement of assets from internal accounts,

  • Embezzlement of client accounts,

  • Theft of physical assets, theft of cash and/or securities…

Fintech solutions: Bleckwen and Galvanize


3. Fraud involving payment means

Fraudulent use or misuse by an employee of :

  • Means of payment (cheque, card, transfers)

  • The technological means of the Group (E-banking, ATM, etc)

Fintechs solutions: Paycar and DUCO


4. Internal loan fraud

Deliberate falsification, dissimulation or errors concerning the granting or management of a loan by an employee. This may cover :

  • Unreliable/uncompleted documents provided by the client

  • Intentional over-assessment of the client lending capacity in the analysis

  • Release of credit funds without completing all required collateral set up processes

Fintechs solutions: AriadNext and


5. Tax non-compliance / evasion (wilful)

This covers both proposed products/services and reporting obligations

  • Proposition of financial products/services aiming at easing third parties (clients, intermediaries, …) tax evasion.
  • Intentionally missing the reporting of tax-related transactions and positions

Fintechs solutions: Minit and Palantir


6. Fraud in accounting process

Intentional alteration of the financial statement reliability and consistency. The shortcoming may occur at each level of the process :

  • Data preparation (deliberately overlook data, …)
  • Data processing (deliberately overstating some facts and data, …)

  • Results validation and release

Fintechs solutions: Callsign and Supervizor


7. Insider trading (not on firm's account)

Access to materiel non-public information and either :

  • Acting on it to gain financial market advantage (selling and buying securities)

  • Providing such information to enable a third party to take advantage of it in the financial market

Fintechs solutions: Digital Reasoning and Quantexa


8. Non compliance with anticorruption laws and regulation

Propose, give, solicit or accept, directly or indirectly, an undue advantage (or promise of an undue advantage) of whatever nature that:

  • may affect the proper exercise of a function

  • may affect the conduct required of the holder of the function concerned

Fintechs solutions; Galvanize and Palantir

9. Swindling

Misconduct of an employee consisting of deceiving a person in order to convince him to remit securities or assets or to provide a service. It may relate to (not exclusively) :

  • Fraud concerning working hours, false expense accounts, fraudulent use of corporate “fuel” card

  • Fraudulent account opening by an employee (opening of an account for personal relations subject to banking prohibition, etc.)

Fintechs solutions: Chapsvision and Netguardians


10. Data disclosed to unauthorized recipients intentionally

Data is made available or disclosed to unauthorized individuals, entities or processes for fraudulent purposes by an employee in order to steal non-public information:

  • Personal data breaches (e.g. Not following the "Need to know" principle)

  • Data leakage/theft (except IT security breach)

Fintechs solutions: Callsign and Senseon



11. Theft / robbery (excluding payment means)

It covers several types of fraud :

  • External fraud by supplier (Deception, falsification, deliberate omission by suppliers, eliberate overcharge of services, quantity, ...)

  • Fraudulent account opening (Opening of an account using false identity papers or falsified documents; this includes mules accounts practices)

  • External loan fraud (Deliberate falsification, dissimulation or errors concerning the granting or the management of a loan using of person’s identity)

  • Kitting (Fraudulent practice based on the interval/gap between the amounts and periods recording of the deposits and withdrawals of funds).

Fintechs solutions: Appzen and Shift Technology


12. Fraud involving payment means

It is covering main payment means subject to fraud :

  • Card-based fraud

  • Fraud using checks : cashing of cheque(s) , falsified, fake and stolen

  • Transfer fraud : transfers issued based on falsified orders, paper or electronic (theft of passwords, Social engineering, Phishing, Malware within customer computers).

Fintechs solutions: LexisNexis and Trustpair

13. Disruptive and destructive cyber attacks

Attacks performed from the internet or outside networks

  • for different purposes (e.g. fraud, espionage, activism / sabotage, cyber terrorism)

  • using a variety of techniques (e.g. social engineering, intrusion attempts through the exploitation of vulnerabilities, deployment of malicious software)

  • resulting in taking control of internal ICT systems.

Fintechs solutions: ethiXbase and BrainwaveGRC


14. Theft of information causing financial loss

Data made available or disclosed to unauthorized individuals, entities or processes for fraudulent purposes through external hacking in order to steal non-public information

  • Non public information: data, documents, other type of information).
  • This is a result of ICT security breach

Fintechs solutions: Ravelin and NetGuardians


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