Zürcher Kantonalbank selects NetGuardians to mitigate payment fraud

ZKB becomes the latest cantonal bank to select NetGuardians' fraud-prevention software

by | August 17, 2022 | bobsguide

Zurich Kantonal Bank (ZKB) has partnered with Swiss fintech security company, NetGuardians, for increased fraud protection.

ZKB will utilise the fintech’s fraud-prevention software to protect the bank’s customers from payment fraud threats.

The bank will benefit from the software’s use of behavioural analytics, artificial intelligence, and machine learning to build up accurate customer profiles.

The software will continuously monitor all transactions linked to an account across all channels, compare them against the customer profile and generate a risk score.

The bank will only contact the customer when the risk score reaches a pre-determined level.

“With NetGuardians as our fraud-prevention partner we know we are giving our customers the best possible protection and a great service,” said Romano Ramanti, Ethical Hacker of ZKB.

“More attempts at defrauding them will be spotted and stopped, and our customers won’t be contacted unnecessarily over authentic payments.”

Swiss cantonal banks beef up security

ZKB’s attempt to boost its security capability comes amid the rising cybercrime in the increasingly digitally reliant environment.

In March, The Swiss Federal Statistical Office revealed that cybercrime increased by 24% in 2021 compared with the previous year.

Financial firms have taken note of the growing rate of cybercrimes and have been looking at various solutions to mitigate the issue as well as possible.

ZKB itself highlighted cyber as one of the key risks in its 2021 annual report, stating, “Cyber and process risks remain the two OpRisk topics with the greatest residual risk for the bank. The management of these risks, therefore, continues to receive a high degree of attention.”

ZKB is the latest cantonal bank to tap into NetGuardian’s fraud mitigation technology.

In May, Luzerner Kantonalbank selected NetGuardians to deploy the latter’s fraud mitigation software to fend off potential attacks.

In June, Basellandschaftliche Kantonalbank (BLKB) partnered with NetGuardians for the same purpose.

Banks increase anti-fraud spend, but ROI still in question

The attack from fraudsters is a global issue, with Juniper Research estimating that the online payment fraud losses will exceed $343 billion globally between 2023 and 2027.

The hefty figure underscores the ongoing fraud attacks companies have been facing on a regular basis.

According to the Payments Fraud and Control Report by JP Morgan, a survey of 552 corporate practitioners revealed that 63% of the respondents did not see any changes in the incidence of payments fraud in 2021, while 29% indicated an increase in such activity.

Despite the worrying numbers, the survey did find that the percentage of organisations that were victims of fraud attacks/attempts was slightly down by 3% in 2021 from 74% in 2020.

The positive development comes at a crucial time for banks as they attempt to protect their customers from cyberattacks and keep their trust, with customers increasingly valuing security as one of the leading factors in determining their service of choice.

A survey of over 5,000 banking consumers by Nasdaq-listed analytics company, Verint, found that fraud protection, fraud alerts, and the security of personal information were among the key factors for consumers when choosing a new bank.

To meet consumers’ demand for strengthened security, firms around the world have been beefing up their security capabilities across several points of the journey.

In May Coast Central Credit Union partnered with fintech Access Softek to use the latter’s digital banking platform, citing real-time fraud protection, among other capabilities as the reason for the collaboration.

In June, Bank Millennium Poland strengthened its anti-fraud capabilities by partnering with UK real identity platform provider Onfido to automate the identity verification of customers during the onboarding process.

Categories:

Resources

Evolving APIs | NXTsoft Connectors For 40+ Banking Core Systems

Best Practice | Banking Evolving APIs | NXTsoft Connectors For 40+ Banking Core Systems

NXTsoft
Banks have real opportunity in FX hedging for SMEs

Other | Banking Banks have real opportunity in FX hedging for SMEs

Hedgebook
How Does NXTsoft OmniConnect Work for Partners?

Video | Banking How Does NXTsoft OmniConnect Work for Partners?

NXTsoft
Castlepoint Systems pioneers world-first regulation technology solution

Case Study | Banking Castlepoint Systems pioneers world-first regulation technology solution

Austrade