Callsign launched what it claims is the world’s first "Dynamic Interventions" capability helping organisations detect social engineering scams in real time, intervene by delivering contextually relevant and personalised messages, and protecting the user from becoming a victim of fraud.
The phenomenon of social engineering has emerged as a way for fraudsters to psychologically manipulate consumers into transferring money to accounts held by the fraudsters.
Known as authorised push payment (APP) fraud, it has been historically hard for banks to detect as the authorised customer is making the payment.
“With real-time and faster payment systems becoming the global norm, banks and financial service organisations need to look beyond conventional fraud detection and actively detect, intervene, and protect customers. Static fraud warning messages to customers have become ubiquitous and ignored and besides, fraudsters are known to anticipate these static messages and coach their victims past those warnings,” said Rakesh Tadathilveedu, solutions consulting lead for APAC at Callsign.
What’s trending
In the last 18 months, APP fraud has grown exponentially. Recent research from Forrester reveals that authorised push payments are considered a major problem by 66% of financial services and consumer banking organisations across the globe (APAC 66%, Middle East 67%, North America 56%, UK 72%).
Organisations agree that using a combination of threat detection, dynamic fraud warnings and behavioural biometrics can help solve this issue.
With faster or real-time payments in place across the globe, it’s impossible to recover money once it has been sent, ramping up the costs of fraud for financial services organisations or consumers. In Asia 40% of banks named social engineering as the number one fraud concern with regards to real-time payments and 25% of consumers reported they had encountered social engineering scams.
How it works
‘Callsign’s Dynamic Interventions detects threats in real-time and can intervene and alter digital journeys appropriately by delivering friction by design and therefore personalised contextual warning messages, which add friction and make the consumer think more about what they are doing, or by introducing new controls or steps to protect customers.’
Using machine learning, the Callsign platform understands recurring behavioural patterns of users when they make online payments and uses that knowledge to detect if the user is acting under coercion.
Combined with threat and malware detection, Dynamic Interventions can intervene the moment a customer might be in danger, delivering intelligent, contextual, and timely fraud warnings to the consumer or stopping payments altogether. Crucially, for genuine users performing recognised activity, these messages won’t be presented. This ensures users will not get message fatigue.
“Fraudsters think globally and will go where they find the path of least resistance, and with Asia leading the way in real-time payments, we are seeing APP fraud growing fast in Asia. Dynamic Interventions help financial institutions protect their customers from being socially engineered into handing over their money to fraudsters manipulating and gaming banking systems for their own gain,” concluded Tadathilveedu.
