Fraud Detection in Banking Transactions - 4072 Words

Preface Purpose The purpose of this document is to detail the description of the Real Time (Active) Fraud Detection in Banking Transactions (FDBT) Project. This document is a key project artifact and is used during the design, construction, and rollout phases. Scope The objective of this project report is to capture the functional and non-functional requirements for the Real Time FDBT project. This report lists out the complete system requirements and design architecture of the project. The requirements contained herein will include, but not be limited to: Capabilities or system functionality – What a system does, to include, but not be limited to: Interfaces (internal and external hardware) Business Rules Data†¦show more content†¦If any transaction is more than 80% credit limit in 48 hours (one transaction or sum or transactions in the 48 hour period). Deposit activity out of the normal range for any account Invalid Routing Transit numbers Excessive numbers of deposited items Total deposit amounts greater than average Large deposited items masked by smaller deposit transactions The amount exceeds the historical average deposit amount by more than a specified percentage A duplicate deposit is detected Deposited checks contain invalid routing or transit numbers The level of risk can be managed based on the age of the account (closed account getting lot of transactions suddenly). The number of deposits exceed the normal activity by the customer Consider the proximity of the customer’s residence or place of business Wire transfers, letters of credit, and non-customer transactions, such as funds transfers, should be compared with the OFAC lists before being conducted. A customer’s home/business telephone is disconnected. A customer makes frequent or large transactions and has no record of past or present employment experience. A customer uses the automated teller machine to make several bank deposits below a specified threshold. Wire transfer activity to/from a financial secrecy haven, or high-risk geographic location without an apparent business reason, or when it is inconsistent with the customer’s business or history.Show MoreRelatedFinancial Risks Of Online Banking1683 Words   |  7 Pages2.2 Fraud risks in online banking The threat landscape The section above traced the evolution of the banking industry’s adoption of IT based innovations with the aim of offering a suite of products and services to delight their retail and corporate customers and to gain cost reduction and market share. Whilst these developments have grown the market universe exponentially it has also created opportunities for crime syndicates and fraudsters to take advantage of the wider canvas and customer ignoranceRead MoreThe Impact Of Technology On The Banking Industry1801 Words   |  8 PagesCONCLUSION RECOMMENDATIONS Conclusion The pace of technology adoption in the banking industry in general and in online banking in particular is quickly changing the way business is being done in the UK. In a win-win situation the banks have embraced the technological innovations resulting in major cost reductions and profitability. The competitive landscape has resulted in growing the overall market with a rich suite of products and services which has left the customers delighted and askingRead MoreThreat Landscape Of Online Fraud Risk Management1460 Words   |  6 PagesIntroduction to threat landscape of online fraud risk management The Online banking and financial services have revolutionised the consumer and corporate banking industry in the last few decades or so by giving customers the power to conduct their banking anytime, anywhere and without all kinds of paperwork and branch visits. This has been possible with the help of massive investments in information technology, systems and communication infrastructure linking the banking industry network with their universeRead MoreOnline Banking And Financial Services1440 Words   |  6 PagesINTRODUCTION Online banking and financial services have revolutionised the consumer and corporate banking industry in the last few decades or so by giving customers the power to conduct their banking anytime, anywhere and without all kinds of paperwork and branch visits. This has been possible with the help of massive investments in information technology, systems and communication infrastructure linking the banking industry network with their universe of customers. This empowerment has also givenRead MoreThe Surveillance Of Cctv Cameras1613 Words   |  7 Pagesand Germany, among other well-known and developed countries (Tchudi, 1993). As per Laura Woods article, â€Å"How online banking evolved into a mainstream financial tool†, (Woods L, 2014), online banking starts as early as the beginning of the 1900’s. However, it became popular in the late 1980’s though very different in respect to the highly sophisticated, well-organized online banking system today. New York became the first to test this recently developed innovative way of conducting business, usingRead MoreThe Security Of A Bank Transaction, Online Shopping Or Booking Flight Tickets On Our Mobile App8041 Words   |  33 PagesWhether it be transferring of funds, making a bank transaction, online-shopping or booking flight tickets on our mobile app, these things have never been so quick and hassle free as today. Evolution of banking sector has been phenomenal. Moreover, the present, ever expanding, inculcation of digital technology has accommodated, within its premise, a further lag in analyzing the consequential stakes. A common pr actice of espionage targets both banking institution as well as its customers. StrikinglyRead MoreBenefits Of Using Big Data1464 Words   |  6 PagesBenefits of using Big Data The big data has application in the detection of fraud. The banking industry acquires data concerning clients from the global world. The information analyzed from various sources makes the banks ensure they do not transact with the unauthorized individual. The data helps the bank to engage in business transactions with the credit worth clients who have not been declared bankrupt (Jerome, 2014). The access to the big data repository centers provides compliance reportingRead MoreQuestions On E Commerce Fraud1221 Words   |  5 PagesE-commerce fraud refers to any type of scheme that uses websites, emails, or any Internet related function in order to present fraudulent solicitations, steal personal information, conduct fraudulent transactions, or transmit money from bank to bank or to other cyber criminals. Fraud is not exclusive to credit or debit cards and criminals have become more sophisticated in their usage of malware in order to take over online banking logins via consumers’ phones, tablets and computers. The stolen bankingRead MoreFraud, Corruption, Theft, Misappropriation, And Fraud1738 Words   |  7 PagesThere is no specific definition for fraud if looked at from different perspectives. The term fraud is used to describe acts such as deception, corruption, theft, misappropriation, false presentation, bribery, fault partnership, forgery etc. Some may even d escribe fraud as practical process of deception to gain an advantage, or to cause loss to another entity or individual. While some people might not even anticipate to commit fraud, others might do so if they contemplate they have a way to be covertRead MoreInternal Factors That Shape Corporate Governance Essay1479 Words   |  6 Pagesthe corporate governance structures for Islamic banks differ from those of the Western conventional banks as the Islamic banking institutions must comply with a different set of rules that are laid out in the Holy Quran and the Shari’ah. Strong Shari’ah corporate governance practices increase accountability, transparency, responsibilities, fairness, and honesty of Islamic banking institutions while augmenting the confidence that the stakeholders place in the activities of a specified Islamic bank