FinTech Fraud and ID Verification Panel Discussion

October 02, 2024

undefined mins

Executives from Finastra, Verizon and Sumsub featured in an engaging panel discussion at FinTech LIVE New York 2024

On 17 June, FinTech LIVE hosted an exclusive virtual event that enhanced connections within the industry and catalysed change for the future.

Throughout the day, those who attended the event were able to learn from internationally acclaimed business leaders, get involved in a range of engaging panel discussions and hear a span of fascinating fireside chats.

During the event, Eric Hussey, SVP and Chief Information Security Officer at Finastra, Mark Turi, Associate Director of Connected Experiences at Verizon and Marwan Semida, Senior Business Development Manager at Sumsub delivered a fascinating panel discussion that focused on the development of challenges in fintech fraud and identity verification (ID) systems.

In the discussion, the three speakers explained how combining regulatory alignment, internal training and a layered approach to security will result in secure identity verification in the fintech industry. As well as this, they continued to discuss how important it is for organisations to stay alert to new tactics in the field to enhance fraud prevention.

FinTech Fraud and ID Verification Panel Discussion

Tech Innovations

Eric began the discussion by focusing on the importance of holding threat-based risk assessments that will protect sensitive operations and identify and prioritise high-risk areas across organisations. By leveraging risk assessments, companies can stay alert to trends that are developing in the fraud industry and stay informed about new tech innovations like new customer authentication methods and advanced transaction services.

Mawan focused on the importance of collaborating with partners, investing in security updates and staying informed on the latest developments in the industry to reduce fraud.

Challenges

Mark began to explain the difficulty in establishing an effective approach to security, due to the complexity of the evolving industry. As a result of this, he went on to discuss how this means that organisations must not approach fraud prevention with a single solution, but instead adopt a layered approach that encompasses various techniques. Mark used the example of detecting fraud on inbound and outbound transactions by utilising voice fraud detection and a number of other carrier-based techniques.

The panel identified that establishing a frictionless experience for customers, constant communication and customer empathy is vital in fraud and identity verification, as Neil highlighted that this can often conflict with maintaining security measures. Mark also began to explore the challenges related to customer experience, emphasising the fact that customers need to be educated on new technologies such as biometric authentication so they feel more comfortable in utilising its full potential. As well as this, Mark explained how unintentional gaps in security can be avoided by providing internal staff training across organisations. He highlighted the fact that user experiences can be enhanced by providing a span of education to both employees and customers.

"Constant communication with customers is key... we're going to add multi-factor authentication, but we'll streamline it to make it easier for you," Mark explained.

Marwan explained how customer bases can become more fraud-resistant by engaging with awareness programs and education campaigns that organisations run consistently. He went on to delve into the fact that educating customers will reduce fraud as they will become more aware to common fraud tactics.

Regulations

Mark began to focus on how important regulations are in fraud prevention. He explained how organisations can unlock greater accountability, use of ethical practices and transparency by adhering to legal frameworks.

"The main challenge currently is keeping up with the rapidly evolving fraud tactics and ensuring compliance with varying global regulations," Marwan said.

Eric continued to explore regulatory requirements, highlighting how they ensure fraud detection systems can become stronger and result in standardised procedures. He explained how effective solutions can be crafted with ease by discovering the correct balance between compliance with innovation. Eric highlighted the fact that regulation ensures that organisations funnel their investments into essential security measures.

Emerging Technologies

Mawan and Mark recognised the potential AI has in fraud detection, whilst also noticing the challenges it can also possess. By utilising this technology, organisations can detect patterns of fraudulent behaviour, reduce false positives, detect fraud and improve their organisation.

“With AI, it’s just the next step in how we continually evolve our security practices against the ever-changing landscape,” Eric explained.

An emerging technology that was discussed in the panel that proved to hold great potential was Biometrics. Across the panel, the speakers all believed that the complex security measures of this technology, such as facial and voice recognition will result in greater accuracy.

“Biometric authentication enhances both security and user experience by providing a quicker and more seamless verification process compared to traditional methods,” Marwan said.

The panel discussion concluded by explaining that emerging technologies, such as multi- factor authentication and AI will result in fraud detection efforts becoming stronger, but emphasised the need for these to be integrated seamlessly intro the industry through collaboration and intention.