Disruptive technologies ensure robust cybersecurity, but they are also being leveraged by malicious actors, says Parthasarathy Srinivasavaradan, Chief Operating Officer, Standard Chartered Bank, UAE
Why is tackling fraud important for the banking sector?
As the banking sector continues to leverage technological advancements and implement digital platforms into its operations, a new breed of threats will arise. Additionally, with the increasing sophistication and intricacy of these technologies, if not correctly managed, the threat could result in significant losses for banking players. Advances in technology represents a tremendous opportunity for banks and yet, with all this opportunity comes enormous responsibility – to grow the trust of their clients, meet the expectations of their regulators and the larger stakeholders.
What are the latest technologies like algorithms and AI that banks are employing to stay on top of fraud?
Despite the disruptive technologies which are ensuring robust cybersecurity frameworks, these advancements are also being leveraged by malicious actors to access a bank’s data and capital. To that end, banks are deploying situational awareness and real-time remediation of threats, automation and AI-driven solutions to serve as a first line of defence against cyberthreats. In the coming period, banks will likely begin to deploy future-forward and complex technologies, including biometrics and quantum computing, as core mechanisms of their cybersecurity functions.
Is Covid-19 leading to a rise in bank fraud?
Fraudsters are always looking for opportunities to leverage situations like Covid-19, where there is increased vulnerability. The UAE is no exception to this trend. We have witnessed common scams where fraudsters pose as government entities, banks and healthcare providers to trick victims into disclosing personal or financial information. Of course, the Central Bank of the UAE was quick to manage the situation by educating the public. It instructed them on handling these calls or messages, avoiding opening any hyperlink that may be attached, which may provide exposure to a malicious website, and informing authorities immediately.
What security tips should customers keep in mind when carrying out digital transactions at this time?
As the pandemic causes rapid and unprecedented disruption to all aspects of modern life and work, a wide range of criminals, both physical or online, are working tirelessly to capitalise on mass public fear and confusion for financial gain and economic advantage. Banks rapidly developed a ‘cyber situational awareness’ and are working diligently to combat any such attempts. However, it is also important to ensure customers remain vigilant in protecting themselves.