CTOS IDGuard foils credit fraud to the tune of RM79 million in one year
CTOS IDGuard, an application fraud bureau, said it has prevented confirmed fraudulent credit applications up to RM28 million in the first 12 months of operation.
In addition, CTOS IDGuard had also reported an additional RM 51 million of suspicious apps to its partners.
The initial participating group of Maybank, RHB, CIMB, Alliance Bank and Ambank has been joined by BMW Financial Services, while Hong Leong and six other banks are being implemented.
Data from CTOS IDGuard over the past year shows that the majority of reported requests are credit card requests, which account for 52% of fraud alerts generated.
More importantly, more than half of alerts are due to requests made by known fraudsters or unions, which is only possible thanks to the multiple partner data pools analyzed by the fraud office.
GBG’s fraud and financial crime prevention engine, which incorporates machine learning technology, powers the CTOS IDGuard fraud bureau.
This allows it to dramatically increase the system’s efficiency in fraud detection accuracy, reduce false positive rates and further improve operational efficiency.
GBG survey data showed that many financial institutions are aware that the potential threat of application fraud is likely to increase, with 51% of Malaysian financial institutions expecting an increase in cases involving coins. identity stolen and 54% expecting scams to increase next year.
In addition to the eKYC implementation for digital customer identity verification, IDGuard also serves as additional protection to prevent potential fraud related to digital applications.
âWe are making great strides in combating credit application fraud, and the increase in the number of participating financial institutions only makes CTOS IDGuard more effective. Our current partners cover over 65% of total banking assets in Malaysia.
As this number increases further in the coming months, CTOS IDGuard will be the most effective tool available to combat application fraud in the market. By reducing the prevalence of application fraud, we allow financial institutions to pass these savings directly on to consumers in the form of better rates and offers for their required credit.
said Dennis Martin, CEO of CTOS Digital Berhad Group, the holding company of CTOS Data Systems Sdn Bhd.
âTo handle a higher volume of applications and more complex use cases, we are deploying our machine learning technology to increase the accuracy of fraud detection and anticipate emerging vectors for CTOS IDGuard.
Across Southeast Asia, machine learning is the number one preferred solution by financial institutions for fraud and prevention in our recent survey; integrating machine learning into CTOS IDGuard will help make financial crime management sustainable, especially in digital channels for participating banks â,
explained Dev Dhiman, Managing Director of APAC, GBG.
Featured Image Credit: New Straits Times
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