AML & Fraud Solutions
Finmedia
16 Iunie 2011
SERBAN POPA
About Actimize
Financial Crime, Risk, and Compliance
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Company:
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$100M financial crime, risk, and compliance software company
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~550 employees: London, Paris, Frankfurt, Utrecht, Milan, Kosice, New York,
Atlanta, Tokyo, Hong Kong, Shanghai, Tel Aviv
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Part of NICE Systems (NASDAQ:NICE; ~$600M+ revenue; $500M+ cash)
Technology & solutions:
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Integrated core technology platform
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Fraud, AML, brokerage compliance & enterprise case management – single
platform
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Transaction and interaction surveillance, integrating voice & data
Proven track record – 260+ clients worldwide:
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Processing billions of transactions daily
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Banks, credit unions, securities, insurance, regulators
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Clients of all sizes
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Clients (Public List)
10 of top 10 US banks 10 of top 10 Global banks 9 of top 10 EU banks
7 of top 10 US IBs
3 of top 5 AP banks
Integrated & Selected by Leading Industry Service Providers
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Enterprise Solutions – Single Core Platform
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Enterprise Solutions – Single Core Platform
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Enterprise Solutions – Single Core Platform
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Actimize Anti-Money Laundering Suite
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130+ retail banking, corporate banking, securities, asset management and insurance
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Combines focused models and rules with Fortent statistical analytics
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Industry’s lowest false positive rates; improves productivity by ~50%
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Covers all and global & national regulations & guidance, typologies etc e.g. Romanian
Law 656 of 2002 (as amended in 2010), NOPCML Decisions, NOPCML Suspicious
Transaction Guidelines, Government Decision 1599/2008, 3rd Money Laundering Directive,
EU Regulations, USPA, FATF, Moneyval , EAG, Wolfsberg, etc
“Flexible transactional
“…strong capabilities
and a blue chip list of
customers including
some of the world's
largest banks...”
analysis and case
management”
“focused domain
expertise”
– Mercator Advisory
Group
“very appealing to
financial institutions”
– Celent
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Comprehensive, End-to-End AML Solution
Alerts
Customer
Risk Score
SARs
Consolidated
Customer View
Activity
Profiles
CDD Risk
Models
Watch List
Matches
POLICY
MANAGER
DART
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SAM
SAM
CDD
Watch
SAMalerts
activity
score
alerts
list hits
and
contributes
and
profiles
contribute
SARs
SARs
are
impact
are
toused
toSAM
included
customer
CDD
inalerts
CDD
customer
inprofile
scoring
single
models
&risk
customer
riskscore
score
view
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KYC – Applicant Process
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Fully flexible interactive on-boarding form
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Covering all KYC/CDD Regulations:
»
Simplified
»
Normal
»
Enhanced
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Ensuring consistency, efficiency, accuracy
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Countering careless, ignorance, connivance
Verification of Identity against public sources
Negative News
Degrees of Separation
Initial List checking
Case Study - Client: mid-size financial institution
»
Time to complete a KYC check:
»
From 7 to 1.7 minutes – 76% decrease
»
5-year savings: over $3 million
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Applicant Review
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ID Verification
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Risk Rating
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Negative News
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Actimize Suspicious Activity Monitoring (SAM)
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Profiling (clients, agents, introducers, managers etc):
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Historic Behaviour
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Peer Group Behaviour
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Anticipatory Behaviour
Incorporating cash payments, transfers, securities, derivatives, insurance,
financing etc
Online Suspicion Filing
Logical Entity Detection, Entity Focus Classification & Surveillance
Party Groups
Cost effective and fast to deploy
Productivity increased by 50% using integrated
investigation Tools
Standardized and streamlined Workflow
Easy and quick implementation
– solution has been deployed in 90 days
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Uniquely Strong Analytics Engine
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Intelligent matching algorithms
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Artificial intelligence string matching
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Synonyms
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Cultural matches
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Misspellings / typos / inversions
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Abbreviations / acronyms / initials
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Organization classification
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Name parsing
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Geographic Normalisation
Examples
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‘Barritt matches ‘Barratt’ matches ‘Barrett’
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‘Abu Ahhmmed Yasin’ matches “Sheik Ahmed Ismail YASSIN”
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‘Billy Clinton’ matches “William Clinton”
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‘Home Loans LTD’ matches “Home Loans PLC”
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Global Fraud Trends
There are a number of trends that are common across
multipleAlthough
geographies
fraud varies widely by geography, there are a
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number of ways in which fraud is evolving that are
consistent across geographies.
Fraud is becoming cross-channel
• Major changes in card fraud
Move to real time
• Move to real-time transactions
Card fraud is changing rapidly
• Cross-channel fraud
New technology-based
attacks
• Coordinated authentication & transaction monitoring
• Channel confidence
• New technology-based attacks
• Adaptability
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Move to Real-Time Transactions
There are a number of trends that are common across
multiple geographies
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UK: Faster Payments
Fraud is becoming cross-channel
US:
Wires
Move
to Retail
real time
Card fraud is changing rapidly
New technology-based attacks
EMEA: SEPA
Payment systems are increasingly real-time and
this presents new risks
• Driven by regulation
Brazil: TED Payments
• Also driven by customers and marketing
• 10x increase in fraud attempts in the UK
after Faster Payments
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Cross-Channel Fraud
There are a number of trends that are common across
multiple geographies
UK Attacks
 Fraud is becoming cross-channel
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APAC Attacks
Move to real
US time
Attacks
Card fraud is changing rapidly
New technology-based attacks
Fraud increasingly is perpetrated across
many channels and more and more
attacks involve more than one channel.
• Online fraud attacks
• Phone channel attacks
• ATM attacks
• Multi-channel attacks
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Actimize Cross-Channel Fraud Solution Suite
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Proven cross-channel and real-time capabilities @ 80%+ detection rate
Enterprise fraud solutions – available individually or as an integrated suite
#1 vendor in analyst reports – including Gartner and Datamonitor
Actimize receives
Strong Positive, highest
rating available, in leading
analyst firm's Enterprise
Fraud Management
MarketScope
- Gartner
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Actimize Enterprise Fraud Fundamentals
Enterprise fraud program requires a balance of a
powerful platform with effective out of the box solutions
Key Platform Capabilities:
Out of the Box Solutions:
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Accurate Analytics
Cross-Channel
Fraud Operations
Synchronous Real-Time
Flexibility
Reliability & Readiness
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Confidential
Card Fraud – Debit & Credit
Remote Banking Fraud
Employee Fraud
Wire & ACH Fraud
Deposit Fraud
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Platform: Accurate Analytics
100
Threat
Score
80
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Actimize unique Phase-Based™
models permit sophisticated
analytics on the right set of trx
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Phase-Based analytics calculate:
90
60
Transactions
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Safe Score to allow legitimate
activity
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Threat Score to prevent fraud as
attack evolves
0
0
Safe
Score
-100
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Platform: Cross-Channel
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New channels add
new profiles
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Customer and
Account profiles
are shared across
all solutions
 Only the Actimize
solution provides
fraud and channel
coverage across
all silos
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Platform: Fraud Operations
Alert & Case Management
Investigations
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Workflow; delegate & escalate
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Instantly query relevant data
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Block/unblock transactions
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Query across
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Alert & case objects
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Web logs
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Management information
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Transactions
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Business process support
(dial & decide, smile & dial, etc.)
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Phone, etc.
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Plain language interface; no need for IT
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Synchronous Real-Time Detection
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True real-time prevention
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Actively receive and analyze transactions
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Return decision / action within ~100ms
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2x to 3x reduction in fraud losses at the same rate of detection
The devil is in the details
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Critical: in-line fraud detection should not bottleneck the platform
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Reliable: handle platform complexities (e.g. failed/late transactions)
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Available: must be continuously available, support multi-site
Actimize has successfully completed over a dozen real-time
implementations at major FIs with up to 1000TPS and 50100ms response times
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Platform: Flexibility
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Business user tools for fraud strategists and analysts
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React to changes in fraud threats – quickly and effectively
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Configure for unique sets of needs and requirements
Visual Modeler
Policy & Rule Manager
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Platform: Reliability & Readiness
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Fraud detection connects to mission critical banking platforms
 Failure of fraud system should not bring down banking systems
 Number of real world complexities that must be solved:
Duplicate records
Corrupted transactions
Lost transactions
IT operator error
Component failures
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•
Engine
Alert manager
System calls
Full site
Database replication
External score integration
Check image integration
Auto-dialer management
The Actimize Core Risk Platform is proven in over a dozen multisite, high-volume, real-time implementations
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Card Fraud Solution
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Targeted capabilities for issuers, acquirers, processors, retailers
 Detect and stop fraud across all card products – in real-time
 Proven, consortium-backed analytical models; billions of trx.
 Clients include MasterCard (global) and DBS (Singapore)
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Remote Banking Fraud Solution
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Prevent account takeover, identity theft in remote channels
 Online, call center, IVR, mail, mobile, payments & banking trx
 Clients include Bank of America, largest U.S. online bank
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Employee Fraud Solution
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Detect self dealing, embezzlement, collusion, ID shielding, etc.
 Combines interactive investigation tools and analytical models
 Clients include Lloyds TSB (UK), several top 10 banks/issuers
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Wire & ACH Fraud Solution
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Stop electronic payment fraud in commercial/retail banks
 ACH, bill pay, wires, internal transfer, and more
 Clients include Bank of America, Wells Fargo, Checkfree
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Deposit Fraud Solution
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Detect and stop fraudulent paper, electronic deposit activity
 Covers paper and e-checks at new account and ongoing
 Clients include Nationwide (UK) and Vanguard (US)
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Why Actimize Fraud Solutions by Romsym Data?
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Proven end-to-end platform
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Cutting-edge analytics for improved fraud detection and prevention
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Alert and policy management, investigations, and oversight
Complete fraud solutions for multi-line banks and brokerages
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Proven fraud solutions across all major areas of business
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Cross-channel, cross-product solutions for all major forms of risk
Part of a comprehensive, practical enterprise fraud solution
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Solutions leverage mature fraud analytics and operational platform
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Used by the leading and largest institutions worldwide
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Romanian local support in analysis phase, implementation and post golive support and maintenance
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VA MULTUMIM PENTRU ATENTIE!
SERBAN POPA
SERBAN.POPA@ROMSYM.RO
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