How Can CFE Certification Enhance Fraud Detection in Banking?

Despite fraudsters’ ever-changing tools, strategies, and approaches, practically all digital banking fraud has one thing in common: it involves payments or withdrawals from the victim’s account that are out of the victim’s usual pattern of activity. Some of these challenges are cutting-edge to be identified by people or even banking professionals. This is why a certified fraud examiner with the skills and knowledge to identify, prevent, and mitigate is critical to the banking industry.

Professionals with a CFE certification are capable of monitoring thousands of behavioral and device data by leveraging the ideal tools and technology to identify patterns in real-time and take proactive measures against fraudulent acts.

Certified fraud examiners provide a comprehensive fraud detection plan that will necessitate the use of various fraud detection technologies and procedures, including but not limited to-

• A certified fraud examiner course enables a professional to leverage the area of behavioral analytics that is based on people displaying persistent patterns of behavior over time. Deviations from these established patterns may indicate fraudulent or malevolent activities. Certified fraud examiners record the variables of time of day, geographic location, transaction frequency, and spending behaviors to identify fraudulent activities and take proactive measures to mitigate them. 

• While Certified Fraud Examiners use behavioral analytics to monitor user conduct, device fingerprinting solutions help them monitor the devices and applications that authorized users often use to carry out that behavior. They may also choose to utilize specific browsers or apps on various devices. Device fingerprinting algorithms can detect changes from regular device access patterns and send alarms in response. 

• Certified fraud examiners also use transaction fraud monitoring to detect and prevent payment fraud using behavioral fraud analytics techniques. Transactions and payments, like user behavior, tend to follow predictable patterns. Transaction fraud monitoring systems highlight and potentially block transactions that do not fit into these regular patterns, whether in terms of volume, frequency, location, or receiver identification.

• Staying updated with the technology and best practices, Certified Fraud Examiners leverage machine learning and artificial intelligence to improve the effectiveness of the aforementioned fraud detection tools, rather than as a strategy in and of itself. Machine learning can improve fraud detection systems by combining training data from millions of genuine and fraudulent transactions. Meanwhile, artificial intelligence can be used to increase the accuracy of automated fraud response procedures, such as automatically evaluating whether to challenge, inform, alert, or deny a transaction or log-in attempt based on available data.