Share with your friends










Submit

Analytics Magazine

FICO: Financial crime trends for 2017

If the world seemed dangerous from a financial crime perspective last year, FICO experts predict an even more challenging 2017. In a new paper, four of the leaders in the company’s fraud and financial crime group laid out 17 predictions, ranging from killer devices in the home to hacked fingerprints.

Among the financial crime trends the FICO experts predict for 2017 are:

Treacherous IoT. “In light of the 2016 Dyn attack, will 2017 be the year that your IoT device will turn on you? I think the answer is yes,” says Scott Zoldi, FICO chief analytics officer. “I predict that in 2017 our personal lives, as well as infrastructure, will be brought down by the devices we design to make things easier. I’m not sure which IoT category or device type it will be, but driverless cars raise the question: What is the quality of the security of code inside that fancy new red car?”

Cybersecurity transparency. Have a poor security posture? Enterprises that do are about to be exposed, Zoldi says. These intelligent scores can be used to assess risk in the underwriting process for cyber security insurance, an exploding category that CFO magazine calls a “must have.”

EMV confusion. The rollout of the EMV standard and chip cards in the United States will be slow and often confusing for consumers, predicts T.J Horan, vice president of product management for FICO. “There’s no way I won’t be swiping my payment card in 2017,” Horan says. “Many merchants have yet to upgrade, and even major chains’ terminals have signs that say ‘no chip.’ “

Hacked biometrics. “Hailed as being safer than digit-based passwords, biometric security data presents explosive potential in hackers’ hands,” says Doug Clare, vice president of FICO’s cybersecurity solutions. “Stolen fingerprints may be a big problem in the future if biometric technology is used to verify bank accounts, home security systems and even travel verifications. You always have the option of changing your password, but you can’t change your fingerprints.”

Illegal migration rings. “Illicit migration is a problem that is being aggravated by the Eurozone’s troubles and Brexit,” says Frank Holzenthal, managing director for FICO TONBELLER, a division of FICO specializing in financial crime compliance solutions. “Illicit migration and human trafficking activities involve a large network of facilitators and collaborators, and criminal funds grease the network. This will increasingly be part of financial crime investigations.”

FICO’s predictions cover the fields of enterprise fraud, analytics, cybersecurity and compliance with anti-money laundering and other regulations. Where some may see these areas as separate, FICO does not.

“Increasingly, the domains of fraud protection, cybersecurity and regulatory compliance are merging within institutions, which are taking a more holistic view of financial crime,” says Bob Shiflet, vice president of financial crime solutions at FICO. “This is critical, as these areas share a need for rapid action based on real-time threat assessment.”

Related Posts

  • 46
    Banks across the Asia Pacific region will stop doing business with suppliers that fail cybersecurity audits, according to a recent poll by FICO. Three in four senior fraud managers surveyed said that they would be concerned enough to stop working with a partner, while another 16 percent said they weren’t…
    Tags: fico, cybersecurity, fraud, security, will
  • 43
    Analytic software firm FICO recently announced that Norvik Banka, one of the oldest commercial banks in Latvia, will use the FICO TONBELLER Compliance Solutions to fight money laundering and financial crime. Bank regulators in Latvia have increased scrutiny on banks suspected of allowing money laundering, resulting in record fines and…
    Tags: fico, financial, crime, will, solutions, compliance, analytics
  • 40
    Silicon Valley analytics software firm FICO was named a leader in the March 2017 report, The Forrester Wave: Predictive Analytics and Machine Learning Solutions, Q1 2017. The report explains, “FICO’s Decision Management Suite encompasses the end-to-end capabilities needed to create, deploy and monitor models for use in complex, consequential enterprise…
    Tags: fico, analytics, solutions
  • 38
    January/February Cybersecurity: new threats, new solutions The IOT and related, hidden security risks Can analytics save U.S. healthcare system? March/April Supply chain advances and solutions Software survey: vehicle routing Capitalizing on AI & machine learning May/June Social media, marketing & analytics Real-time customer personalization Next generation revenue management July/August Software…
    Tags: analytics, solutions, fraud, security, cybersecurity, iot
  • 36
    News from Frontline, AIMMS and FICO
    Tags: analytics, fraud, fico


Headlines

Does negative political advertising actually work?

While many potential voters dread campaign season because of pervasive negative political advertising, a new study has found that negative political advertising actually works, but perhaps not in the way that many may assume. The study “A Border Strategy Analysis of Ad Source and Message Tone in Senatorial Campaigns,” which will be published in the June edition of INFORMS’ journal Marketing Science, is co-authored by Yanwen Wang of the University of British Columbia in Vancouver, Michael Lewis of Emory University in Atlanta and David A. Schweidel of Georgetown University in Washington, D.C. Read more →

Meet Summit, world’s most powerful, smartest scientific supercomputer

The U.S. Department of Energy’s Oak Ridge National Laboratory on June 8 unveiled Summit as the world’s most powerful and smartest scientific supercomputer. With a peak performance of 200,000 trillion calculations per second – or 200 petaflops – Summit will be eight times more powerful than ORNL’s previous top-ranked system, Titan. For certain scientific applications, Summit will also be capable of more than three billion billion mixed precision calculations per second, or 3.3 exaops. Read more →

Employee engagement a top concern affecting customer experience

Employee engagement has surfaced as a major concern in delivering improvements in customer experience (CX), with 86 percent of CX executives in a Gartner, Inc. survey ranking it as having an equal or greater impact than other factors such as project management and data skills. “CX is a people issue,” says Olive Huang, research vice president at Gartner. “In some instances, the best technology investments have been derailed by employee factors, such as a lack of training or incentives, low morale or commitment, and poor communication of goals." Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

INFORMS Annual Meeting
Nov. 4-7, 2018, Phoenix

OTHER EVENTS

Making Data Science Pay
July 30-31, 12:30 p.m.-5 p.m.


Predictive Analytics: Failure to Launch Webinar
Aug. 18, 11 a.m.


Applied AI & Machine Learning | Comprehensive
Sept. 10-13, 17-20 and 24-25


Advancing the Analytics-Driven Organization
Sept. 17-20, 12-5 p.m. LIVE Online


The Analytics Clinic: Ensemble Models: Worth the Gains?
Sept. 20, 11 a.m. -12:30 p.m.

CAP® EXAM SCHEDULE

CAP® Exam computer-based testing sites are available in 700 locations worldwide. Take the exam close to home and on your schedule:


 
For more information, go to 
https://www.certifiedanalytics.org.