Cybercrime Preparedness –
Fortifying Against New
Generation Financial Crimes
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Discussion Points
 Preparing for the emerging threats in security and financial
crime
 What are the key challenges in an evolving regulatory and
operating environment?
 How to leverage technology and data to fully optimise the
integration of next-generation anti-money laundering
strategies
2
Our Changed Environment
2
Growth of Financial Crimes
 Financial crimes have been increasing significantly
 Increased scrutiny by regulatory bodies
 Greater due diligence from organisations
2
Emerging Threats
 Types of financial crime are
generally the same. The
changing in threat is:
 Speed
 Scale
 Diversity
 Capability
 Anonymity
The impact is also
intensified:
 Customer
 Reputation
 Financial loss
 Business cost
 Regulator
 Lack of change of approach
2
Fraudsters are diversifying
 Fraudsters are finding more ways to fund activities or profit by
multifarious means both internally and externally
 Emerging channels
 Internal threats
 External threats
2
New access points for information
 New ways of gaining access to customer information have
increased the ways of committing financial crimes
 Cross channel & cross
product fraud
 Virtual currency
 Online banking
 Gift card theft and
scams
 Mobile banking
 Emails scams
 Mobile payments
2
Internal threats are on the rise
 Identity theft
 Gifts and entertainment
 Embezzlement
 Vendor relations
 Fraud
 Information security
breaches
 Bribery
2
External threats remain
 External threats continues to be on the rise as well, event
with existing regulatory demands increasing
 Fraud
 Mutual fund abuses
 Trade violations
 Vendor Services SLA
braches / Vendor KYC /
Data Braches
 Brokerage fraud
 AML & CFT
 Tax crime
 Sanctions violations
2
Challenges in Managing This Risk
 Cross border nature & speed of crime
 Anonymity
 Varying nature of regulation at a jurisdictional level
 Lack of global regulation and law
 Challenges in prosecuting offences
 Criminals more adaptable than regulators and industry
2
Develop a Strategy
 Consider investing the time and effort in developing a
strategy for financial crimes control, including:
 IT systems
 organisational capability – people are extremely
important
 critical success measures, including gaining executive
support
2
Accessibility & Scale
 Access to timely and accurate information about current &
emerging risks to the bank
 Scalable ability to monitor activity across a wide range of
products and channels
 Ability to monitor and respond to their risks 24 x 7,minimising
our exposure
2
Manage Residual Risk
 Demonstrate and deliver value by working with your business
to:
(a)
design out risk as far as practicable,
(b)
be able to detect & respond to an incident if it does
occur, and
(c)
minimise any negative customer outcomes.
2
Leveraging technology and data
 Good analytical systems demand higher quality, granular
data that is not always readily available in a legacy
environment
 An enterprise-wide strategy is required
 Approach must be consistent with other existing & emerging
operational, technological or regulatory requirements (i.e.
AML, privacy, technological changes)
2
The Approach
Bespoke
Scaleable
(siloed)
Systems
Solutions
Data
Re-use for
BI
Lower
Costs
Higher
Costs
Holistic
Disconnected
Financial
Crime
Approach
Management
Multiple
Data
Marts
Improved
Customer
Service
Different
Fraud
Departments
Centralised
Case
Management
High
Quality
Metrics
Poor Case
Management
Understanding Our Customer
 On boarding
 Screening & risk assessment of all new customers
 Escalated approval process based on risk –
customer, business, country
 Continuous monitoring
 Transaction monitoring & screening of cross border
payments
 Continuous screening of our customers
 Periodic review of customers based on risk
 Thematic reviews – Tax Crime, Cyber & Sanction
Risk
36
Intelligence & Analytics





Identify emerging trends
Environmental scanning – understanding threats
Optimising and focussing our monitoring program
Malware & phishing alert service
Industry engagement
35
Monitoring & Testing





Monitoring critical security indicators
Data loss protection & monitoring at our gateways
Penetration testing across the bank
Transaction monitoring for online banking
Multi factor authentication & transaction authorisation
at customer level
 Manual authentication of higher risk payments
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Governance
 Risk based program testing
 Financial Crime Committee oversights our AML,
Sanctions & Fraud program
 Reporting to Operational Risk Committees &
Business Control Committees
 Global Rules Forum to manage, validate and monitor
our systems and rules
36
Training & Awareness
 General awareness training for staff
 Targeted training based on risk ie Trade Finance,
Tax Crime, Sanctions, Fraud, Information Security &
Cybercrime risk
 Consumer awareness campaigns
 Collaboration on Industry and Government initiatives
ie Interpol, law enforcement, banking associations
36
What We Have Covered
 Preparing for the emerging threats in security and financial
crime
 What are the key challenges in an evolving regulatory and
operating environment?
 How to leverage technology and data to fully optimise the
integration of next-generation anti-money laundering
strategies
2
Thank you
2