Fraud Detection And Prevention With RiskOps Strategy In FinTech Industry

With the pace at which the FinTech industry is revolutionizing, fraudulent activities are evolving alongside. Frauds in the FinTech sphere have increased manifold, especially after the advent of Buy Now Pay Later, mobile banking, e-wallets, digital wallet payments, cross-border payments, digital currencies, and much more. Per Statista, the FDP market is projected to exceed 63 billion U.S. dollars in 2023. 

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At the same time, the fraud landscape is getting increasingly sophisticated due to a range of illicit activities, from money laundering to identity theft, and frauds done through deepfake technology, first-party fraud due to BNPL, bot attacks, crypto and money laundering, money mules, and more. No wonder why FDP has become a major concern for modern FinTech companies today. All of this, calls for proactive measures toward FDP.

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• Driving innovation with contemporary technologies and security solutions - It has become more critical than ever for traditional FinTech software development companies to move beyond their legacy architecture through modernization strategies. They need to prioritize improving risk management and investing in the latest technologies like AI/ML, RPA, Blockchain and digital currency, Neo banking, and more to take proactive measures to tackle frauds pertaining to email phishing, credit card fraud, identity theft, and more. Security solutions like SASE and RegTech, models like zero trust security model, when leveraged to their full potential, can prove as a game changer in the financial industry.

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• Robust Risk Operations (RiskOps) strategy and platform - RiskOps enable FinTech companies to take a more systematic, measured, and proactive approach in perceiving risk. A well-framed RiskOps platform provides financial entities with a strategic framework to effectively manage risks such as regulatory & compliance risks like AML, KYC, KYB, and OFAC, application & data security risks like SDLC, data management, patch and security management, vulnerability management, penetration testing, etc., and operational risk pertaining to people, businesses, and processes.

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• Agile Anti-Money Laundering (AML) screening and Know Your Customer (KYC) compliance - Global spending on AML/KYC data and services is projected to total a record $1.35 billion in 2021. AML and KYC can be capitalized to improve customer onboarding, continuous monitoring, risk scoring, transaction screening, and more. KYC has undoubtedly become a critical measure for fraud prevention and regulatory compliance. And, financial companies must digitalize their KYC processes to improve due diligence, trace suspicious transactions, and get swift turnaround times.

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Final Thoughts

It has become paramount for FinTech software development companies to leverage advanced solutions like AI-powered KYC and regional data protection regulations to stay ahead of risks and vulnerabilities. It is always advisable to deploy a proactive and cohesive Risk Management system integrating modern tools to prevent fraud even before it happens. As a leading fintech application development and platform engineering services provider, we firmly believe that FinTech platforms should be built with security at every level -- data-in-use, data-at-rest, and data-in-motion. We help our expert FinTech software developers with hands-on experience in developing apps, digital wallets, and payment gateways and harness the power of AI/ML analytics to build a strong digital ecosystem.

Build a secure and scalable Cybersecurity platform for your FinTech solutions with Zymr

Zymr assists FinTech companies build a strong and solid digital ecosystem by keeping RiskOps at the forefront of our service offerings. We have a track-record of working with renowned FinTech companies to build secure FinTech products. For our client WePay (a Chase company), we built a complete full-stack cloud-native Fraud Prevention solution that processed billions of payments between merchants and clients. For our another client, Digital Guardian, we developed a complete data security DLP solution for Banks. For a leading data privacy compliance software company, we created a full Data Privacy Protection and Digital Privacy Rights Management (DPRM) to allow FinTech adhere to prevailing Data Privacy regulations like CCPA, GDPR, etc. 

If you too are looking to accommodate cybersecurity in your financial software development strategies, feel free to get in touch with our FinTech experts.