In a closing session at EBAday 2024 in Lisbon, a panel featuring Marc Corbalan, VP of RTP Analytics at Visa; Erwin Kulk, Head of Service Development and Management at EBA Clearing; Simone Löfgen, Global Head of Payment Platforms and Managing Director at Commerzbank; and Kannan Rasappan, Founder and CEO of Banfico, discussed innovations in cybersecurity under the theme ‘New Approaches to Fraud Management.’
Kulk emphasized the importance of collaboration among industry players to effectively combat fraud. Löfgen echoed this sentiment, stating that a united approach is essential, as fraud represents a shared challenge. She noted the necessity for common strategies in fighting fraud, given that fraudsters operate in highly connected networks while banks face stringent regulations.
Rasappan added that the industry has yet to fully explore the potential of collaboration. He remarked on the significant financial investments in technology by banks, yet the persistent challenge of fraud remains unsolved. He urged banks not only to collaborate but also to educate their customers about their roles in maintaining security.
Kulk highlighted the disparity between the rapid growth of instant payments and the corresponding rise in fraud, which is reportedly six times higher than that of regular credit transfers. He suggested that tools like Verification of Payee could play a crucial role in addressing risks associated with fraud. He noted that banks must be mindful about where to create friction in the payment process.
Löfgen mentioned that effective fraud detection involves more than just Verification of Payee; it requires understanding patterns to reduce false positives, with ongoing refinements in predictive models.
The discussion also explored the utilization of AI in fraud management to detect cyber threats and the role of social media platforms in addressing fraud. Kulk urged social media companies to assume responsibility for the fraud that originates on their platforms.
Corbalan spoke about the dual aspects of AI hype and genuine innovation, particularly the transformative potential of Generative AI. He compared its impact to that of cloud computing on artificial intelligence, noting the strengths of GenAI in handling large datasets and automating tasks while acknowledging that traditional machine learning models still perform better in certain contexts.
The panel also touched upon data sharing and privacy concerns. Kulk highlighted that while individual data sharing may be impractical and legally challenging, centralized data systems could provide valuable insights into patterns and anomalies, facilitating collaboration within legal frameworks.
Ultimately, the panelists reinforced the message that collaboration across industries is crucial for enhancing fraud management strategies. They agreed that leveraging modern technology and fostering partnerships will be key to evolving approaches in combating fraud.